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Group buy for Canadians - extended warranties & replacement coverage


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I am posting it here, but the mods can move it wherever they feel it should be if it isn't the right place - I just don't feel that this is an accessory or a maintenance item. While I mentioned it at the end of a thread I started asking about warranties and such, I feel it needs it's own thread.

My idea is simple: Dealers make a 100% markup on extended warranties, which is highway robbery - they also make a HUGE killing on replacement cost policies. So I'm organising a buyer's group and plan to approach some local dealers and get them to drop the prices to something reasonable:

For example, the 7/115 bumper-to-bumper retails for almost $2200 - if we buy several I am certain it would be a simple matter to get the price down to or below $1400, which makes it a pretty good deal - not to mention how it improves the resale value of your vehicle.

I figure that it doesn't matter what plan each person buys - as long as we have 10 or 15 people willing to buy we have a lot of negotiating power. I can't yet say what the net price would be for any plan, but I expect a discount of AT LEAST 25% from retail, probably more like 35%-40% if I have my way. Your commitment to participate would be based on saving that minimum 25%, though I am confident I can negotiate better than that - that's what I do for a living and I've had quite a bit of success . . . . Anything beyond the 25% should be considered 'gravy', though not unexpected.

Note that your vehicle has to be less than 3 years old and have less than 60,000 km to qualify. I was told there is a surcharge for the purchase if the car is older than one year and has more than 20,000 km - I seem to recall that hey told me it would be $250 - even then, that is likely discountable. Your vehicle doesn't need to be a Journey, or even a new vehicle. It can be any product that Chrysler would sell a plan for (including pickup trucks and taxicabs). Manufacturer's plans are head-and-shoulders better than 3rd party ones. So get on board and let's save some serious coin.

You would pay for your own plan, presumably with your credit card. Though I could envision the dealers insisting on checks - in which case you would send them to the dealer (or to me, though made out to the dealer) for the appropriate amount. Dealers like certified checks or bank drafts for large transactions.

For those not subject to HST and out of Quebec I assume there'd be no provincial taxes to pay (not that anyone in Alberta pays PST anyway).

Who is interested?

You can post in-thread or you can PM me. I'd like to move this along before they have their next price increase.

Edited by bramfrank
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There was no mention of a 7/115 basic even available. I did go with the 5/100 basic though. Would have considered a 7/115 if there was one though. Although on an average of 20k/year driving, you won't make 6 years, let alone 7. So I'm not so sure how much more a 7/115 would be worth.

Your dealer did NOT inform you properly. You may be able to have your contract adjusted. Did you know that you can cancel your plan and get a full refund within the first 60 days? (It is mentioned in the brochure.) If you got no discount your dealer made 100% profit on his investment and will likely work with you to change the plan to save his profit.

Perhaps you could cancel and then join the buyer's group, though before doing that I suggest checking with Chrysler (not your dealer) to see if you can repurchase the warranty if you cancel . . . . is yours even Mopar's product at all? (which could explain why you weren't offered 7/115.)

I was quoted $2145 for 7/115 bumper-to-bumper by one local dealer . . .. . . I drive about 15K/year, so that works for me personally - they offer programs for up to 7/160 as well and other plans with coverage to 5/200.

A 7/115 'basic' (power train only) would be plan 486 according to the brochure. As a 'Gold' (bumper-to-bumper), it would be plan 419, 7/160 would be the 410 - apparently you can't extend the 'Gold+' (Bumper-to-bumper with maintenance) past 5 years, though it can go to 160,000 km.

Here is a link to the current brochures (too bad they don't include retail pricing for these plans in them):

http://www.mopar.ca/en/service/max.pdf (Zero dollar deductible plans)

http://www.mopar.ca/en/service/2003SCBEnglish.pdf ($100 deductible plans)

http://www.mopar.ca/en/service/special_use.pdf (Special use plans - commercial vehicles)

http://www.mopar.ca/en/service/Certified%20Pre-Owned%20Vehicles.pdf ('Certified' pre-owned vehicle plans)

http://www.mopar.ca/en/service/Quality%20Pre-Owned%20Vehicles.pdf ('Quality' pre-owned vehicle plans)

Edited by bramfrank
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Interesting. Thanks for the link to the brochure. I might have to dig into this a little bit. If the price was right, Plan 410 sounds right ... although 419 wouldn't be a bad option either. I believe right now I have plan 415, but I haven't received my package in the mail yet, so I could be wrong there. Definitely some food for thought there ...

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WOW is that hefty! 5/100 at $1800 over here. It's still pricey, but after my experience with the 7/115 when I bought my '03 Sebring (used, 4 years old at the time) at $2500 ... they have an easy sale with me. I MORE than got my value out of that plan. Front end parts, axles, ball joints, engine seals ... yeah, when you're talking about an extended warranty on a vehicle, worth it. When you're talking $50 service plans on a $90 vacuum at Walmart ... not so much. (My favourite ever was a $7 service plan on a $10 alarm clock!! Seriously. I felt bad for the teller having to ask if I wanted it.)

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Well, if we're going to make this work I figure we need at least 10 participants. For that I expect to negotiate a minimum 25% discount (which would be the target number for a 'go') anything more would be gravy - people would be committing based on receiving at least that 25% discount.

Keep in mind that ANY Dodge/Jeep/Chrysler/RAM vehicle can be included and any mix of plans works . . . I'd also like to look into whether we couldn't get a number of buyers for 'remise a neuf' (zero depreciation) policies for 5-7 years as well - I've had full payoffs on 2 of them over the years and literally multiplied my investment - plus you get a reduction in your deductible for accident repairs AND they pay the price to use new OEM parts over the term of the policy in the event of a fender-bender.

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So now there were potentially four:

- Me

- Chrispollard

- Armendegga

and _2031 has indicated interest in getting involved with the deal

I'm posting the information in-topic top keep track of participants . . when we have enough people I'll re-write to the participants to get their confirmations and then head in to negotiate with a couple of dealers to play them off against each other.

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  • 4 weeks later...

So now there were potentially four:

- Me

- Chrispollard

- Armendegga

and _2031 has indicated interest in getting involved with the deal

I'm posting the information in-topic top keep track of participants . . when we have enough people I'll re-write to the participants to get their confirmations and then head in to negotiate with a couple of dealers to play them off against each other.

I would be interested at the 40% range. I think that for 25% I will take my chances with the factory warranty as I rarely keep a car for more than 5 years.

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I posted this on redflagdeals as well and have three potential participants from there as well - you'd think that more people would want to climb on board.

I pbviously can't guarantee what discounts we'd be able to get - but if you're a player at 40%, then I can always go in with your name and vehicle information conditioal to that level of discount - the dealer would be making a 20% markup at that point which isn't nothing, though perhaps not enough to hold their interest.

I won;t be letting this go on for much longer before I walk it through the next phase, so if anyone else wants 'in' please let me know.

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Your dealer did NOT inform you properly. You may be able to have your contract adjusted. Did you know that you can cancel your plan and get a full refund within the first 60 days? (It is mentioned in the brochure.) If you got no discount your dealer made 100% profit on his investment and will likely work with you to change the plan to save his profit.

Perhaps you could cancel and then join the buyer's group, though before doing that I suggest checking with Chrysler (not your dealer) to see if you can repurchase the warranty if you cancel . . . . is yours even Mopar's product at all? (which could explain why you weren't offered 7/115.)

I was quoted $2145 for 7/115 bumper-to-bumper by one local dealer . . .. . . I drive about 15K/year, so that works for me personally - they offer programs for up to 7/160 as well and other plans with coverage to 5/200.

A 7/115 'basic' (power train only) would be plan 486 according to the brochure. As a 'Gold' (bumper-to-bumper), it would be plan 419, 7/160 would be the 410 - apparently you can't extend the 'Gold+' (Bumper-to-bumper with maintenance) past 5 years, though it can go to 160,000 km.

Here is a link to the current brochures (too bad they don't include retail pricing for these plans in them):

http://www.mopar.ca/en/service/max.pdf (Zero dollar deductible plans)

http://www.mopar.ca/en/service/2003SCBEnglish.pdf ($100 deductible plans)

http://www.mopar.ca/en/service/special_use.pdf (Special use plans - commercial vehicles)

http://www.mopar.ca/en/service/Certified%20Pre-Owned%20Vehicles.pdf ('Certified' pre-owned vehicle plans)

http://www.mopar.ca/en/service/Quality%20Pre-Owned%20Vehicles.pdf ('Quality' pre-owned vehicle plans)

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@kubind;

It doesn't matter where 'you' are, or where I am for that matter, since what we're buying are OEM plans which are backed by Chrysler - I have no idea whether the price I was quoted was discounted or not (I suspect it may have been nor do I know what plan you were quoted on nor whether it was a Chrysler OEM plan or not. But I DO know that your price included 13% HST, where mine did not include taxes - it is important to compare apples to apples.

What we need to do is to get the EOI part of this program completed (EOI means Expression Of Interest) and when we know how many plans we're looking for we can also figure out WHICH plans people want to buy and to start the process of negotiating by getting the retail prices for the plans in hand and then working from there.

But I need to know that given that these plans can be worth upward of 3,000 and even 5,000, I don't want to see people sticking the rest of us with a lame duck deal because of sticker shock. We need to KNOW what we're committing to and those who do commit to the program will need to come up with the payments when the time comes.

Edited by bramfrank
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