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Chrysler: Chrysler Powertrain warranty and other Svc contracts

  1. #1
    Greg
    Guest

    Chrysler Powertrain warranty and other Svc contracts

    New Chrysler & Dodge (Jeep too) vehicles now include a
    powertrain warranty (with a deductible). Previously the
    factory service contracts were available in three flavors:
    powertrain, added care, and max care. Since new cars
    include the powertrain coverage as a standard item, added
    care and max care only are available as extra optional
    coverage.

    The max care and added care previously included the
    powertrain coverage. Since powertrain is now standard,
    you'd expect that the cost of max care and added care
    service contracts to fall, since they no longer need to
    cover the powertrain items.

    But instead, added care and max care service contract prices
    (at the wholesale level) have increased quite a bit. Was
    this due to increased claims or did they just hope customers
    wouldn't notice they are getting less coverage with the
    optional packages?


  2. #2
    Ted
    Guest

    Re: Chrysler Powertrain warranty and other Svc contracts


    "Greg Johnson" <free> wrote in message
    news:free... 

    I think it is because competitive pressures didn't allow them to increase
    the
    vehicle price to cover the increased claims that they are going to be
    paying out as a result of increasing the powertrain warranty. So they
    are obviously hoping that by raising the service contracts on the
    other items that they will make up the additional money to cover the
    increased powertrain claims. This is actually a benefit to people
    who don't normally buy the added care and max care warranties.

    Warranties of this length are basically insurance, and like all insurance
    your gambling against the insurer, and the insurer is gambling against
    you. Like most gambling the odds are stacked in favor of the house,
    in this case the manufacturer. So if you choose to play the game,
    you can hardly complain that your not getting a good deal. The odds
    are deliberately set that you won't, most of the time.

    Ted



  3. #3
    Art
    Guest

    Re: Chrysler Powertrain warranty and other Svc contracts

    With the cost of repairs these days it is easy to come out better with
    the agreement. Power window failures on the 300M can easily cost a
    grand and are still common. Plus the car is easier to sell if you
    have a transferable bumper to bumper warranty.


    "Ted Mittelstaedt" <placo.com> wrote in message
    news:newscache$c98umh$cal1$ipinc.net... 
    increase 
    be 
    they 
    insurance 
    against 




 

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