DC Service Contract. Is It Needed?

[Archive]

Hope this is in the right forum folks?.

When I purchased my `01 from the dealer I also bought the DC extended service contract for 7 years/75,000 miles. That cost me about $1,400. 00. Now I have been doing some thinking and found that I am really only getting a 4 year plan for this chunk of money. If you figure that the truck comes with a 3/36 plan from the start of ownership and tack on 4 years that this plan is good for sounds like DC is pulling a fast one #ad
!!!I realized that the extended service contract is really not that extended at all. The service contract makes the original 3/36 plan null and void. This kinda sucks. That is why I am asking for some honest opinions as to whether or not I should cancel the contract and get a pro rated refund and just go with the 3/36 plan. The contract states:"On cancellation requests recieved within the first 60 days from the original purchase date of the plan, you will be refunded the full amount you paid for the plan,provided no claims have been paid against the contract. In the event claims have been paid or requests received after 60 days,your refund will be based on the full amount you paid for the plan,less a pro-rata adjustment for time or mileage used,whichever is greater,less a cancellation fee as indicated below". The fee is $50 bucks if I decide to cancel it. There have been no warranty claims paid on the truck either. The 60 days has passed #ad
. If I do cancel this plan I should expect to recieve about $1,300. 00 or so back #ad
. I intend to keep my rig for a long long time and do not forsee any problems in the near future. I will perform the required maintenance religiously. I would like some other inputs on this matter relating to any warranty problems associated with these trucks. I will only be putting about 12-13,000 miles a year on it,so I want to be doing the right thing if I do decide to cancel the ESPlan.
Questions/comments?
Thank`s TDR members!

Phil Stuart


------------------
`01 2500,QC,LB,4WD,ISB,5SPD,
355 LSD,Tow Pkg. ,Forest green PC,Mopar alum. side steps,Mopar Mud flaps,Mist gray seat covers,Tekonsha brake controller. Bone stock and plenty of power. THE BIG GREEN MACHINE.
Built in St. Louis
Phil Stuart

I`M GLAD TO BE CUMMIN`

 

[Archive]

Phil, this is really a personal thing. Some of us will tell you that its money well spent, while others will say your throwing your money away. How long do you plan on keeping the truck? How much heavy towing do you plan on doing? Who will be maintaining the truck,ie; oil changes and the like? Will you be going to the same dealer that you bought the truck from for service? Can you establish a good relationship with the service department? These question really help when deciding to purchase the extended warranty. I for one do not purchase them for the very reason you mentioned, 1 year for $1,400. is a bit rough on the wallet. The 3year 36,000 mile bumper to bumper is going to get you through 95% of any problems. The motor is 5 year 100,000 miles so thats my speach! Regards Pete

------------------
99'3500,quad cab,4X4,a/t
3:54,all the right packages!PROPER VALVEMENT

 

[Archive]

Pete,
I plan on keeping the truck `till the body drops off the frame,and then might put a new body on it. I will do all of the regularly scheduled maintenance myself besides some other things that need tending to. I am not towing anything of substantial weight at this time,however am looking to buy a camping trailer in the future. About the dealership,This is the first vehicle that I have bought from them and have heard some good things about the dealer. I deal with the parts dept. all the time for my other truck an `85 DODGE Ramcharger. Must have spent hundreds upon hundreds of dollars at the parts counter,always a good repertoir with the parts guys. I have not been to a dealer service dept. in years because I perform all of my own repairs. Do not know anyone at this dealership in the service dept. To be honest with you,I hate going to the dealership service dept. for anything because I have had some terrible dealings with the dealer when I bought my `86 furd pickup truck back in `85,Oh! This was in my former life BTW #ad
.
Pete,I do agree with you when you said that 95% of the problems will surface during the 3/36 coverage. I was not thinking I guess when I bought this ESplan. I welcome more responses please!
Thanks Friends #ad
.

Phil Stuart

------------------
`01 2500,QC,LB,4WD,ISB,5SPD,
355 LSD,Tow Pkg. ,Forest green PC,Mopar alum. side steps,Mopar Mud flaps,Mist gray seat covers,Tekonsha brake controller. Bone stock and plenty of power. THE BIG GREEN MACHINE.
Built in St. Louis
Phil Stuart

I`M GLAD TO BE CUMMIN`

 

[Archive]

I'm in the medical business. When we sell insurance to a client we look at the type of people in the group, the medical claims they've had in the past, their age, their lifestyle, etc. , etc. , etc. We come up with a price for the plan that guarantees us a profit. Sure there's a risk -- like we might make MORE profit than we planned.


The facts:

In principle, extended warranties are nothing more than insurance. If Chrysler didn't make money from them, they wouldn't sell them. That means the "group" pays more for the plan then Chrysler pays back in "claims". The odds are stacked against you.


The opinion:

I don't buy them because year-in and year-out the odds are I'll pay more for an extended warranty than I'll benefit from it.

[This message has been edited by Kyle (edited 06-23-2000). ]

 

[Archive]

I never buy them either. I agree with a previous post - If something is going to go wrong it probably will within the 3 / 36 warranty. They just seem too expensive for me. Think of the nice upgrades you can do with that $1,400. 00.

 

[Archive]

That's like asking if you really need life insurance. You don't unless you drop dead suddenly. I got a 5 year plan thats refundable if I don't use it. That's assuming the dealer is around in 5 years...

------------------
2001 HO 6 speed Regular Cab SLT 4x4 3. 54 anti spin 2500. Used for the daily grind and sneaking away to some secret Baja beaches toting a cabover

 

[Archive]

Phil, I think It also depends on if you can or want to do your own repairs and how good your dealer is. My own experience is that DC garage mechanics screw up as much as they fix. I had a half dozen cronic problems worked on by my dealer under warranty and now at 97,000 miles I continue to have the same problems (mostly minor).
It may help to give you a list of regular maintenance items not listed in your manual #ad
from my own experience and from these forums):
Track Bar every 45,000 miles, Throttle cable every 50,000 miles, fuel tank sensor every few years, injector pump fuel return hose every 4 years. Hope this helps. By the way; A list of ongoing problems: misc. random electrical faults (windows, locks, idiot lights all come while driving), brakes react differently at each panic stop, transmission drops out of overdrive (happens twice a year in cool conditions and at 60mph), crappy radio (the $800 cd option). Don't get me wrong; I love my truck!

------------------
1995 2500 SLT Club 4x4, auto, 3. 54, 3300 pound Elkhorn slide in camper, AirLift air springs, Ricka dual wheel adapters, K&N, DC tow hooks, Rancho RS9000, Hellwig rear sway bar.

 

[Archive]

A wise old man once told me that if has tits or tires on it, sooner or later, you're going to have trouble with it. The DC warranty my dealer sold me is the "Diesel Wrap" warranty. Covers all the rest of the truck for 100K. Dealer cost on this package is $790. These contracts are called "mark up" contacts. That is to say that the F&I man at closing will charge whatever the market will bear. In my dealership, my 36 month, unlimited mile contracts cost me $649. We mark them up from there. At $1400, they clipped you pretty good. I'd cancel, recoup my $ and shop. Good Luck... ... ..... Barry

 

[Archive]

Thanks folks for the replies to my post!

I just looked at the sales contract, and the non dealer extended service plan from DC cost me exactly $1,490. 00 #ad
. I have been doing some thinking and will most likely go to the dealer on monday to cancel it. Shouldn`t be any problems with this. Yes I could buy some goodies with this amount of money and put it to good use #ad
. I understand that the dealer is in it to make a profit otherwise why would they sell these plans?.
I am confident that the 3/36 coverage is enough.

Thanks again for the replies people. It is good to know that I can always seek advice on the TDR forums #ad
.

Phil Stuart

------------------
`01 2500,QC,LB,4WD,ISB,5SPD,
355 LSD,Tow Pkg. ,Forest green PC,Mopar alum. side steps,Mopar Mud flaps,Mist gray seat covers,Tekonsha brake controller. Bone stock and plenty of power. THE BIG GREEN MACHINE.
Built in St. Louis
Phil Stuart

I`M GLAD TO BE CUMMIN`

 

[Archive]

Mine has paid for itself just in parts.

------------------
"Roadrunner"-96 4X4 club cab-12v-auto-3. 54 gears-Amsoil bypass filter - all Amsoil fluids-trans filter-britebox-shelfit-DeeZee boards-Rhino liner-Rancho 5 speed shocks-Hellwig rear antisway & overload springs-Warn 12000 lb. winch-dual redtop optimas-combo gauge and trans. temp gauge in pillar mount-255/85R16 Kelly MSR tires-custom pinstriping- Walker muffler-Cummins mudflaps-Tuff Country control arms-2" coil spacers

 

[Archive]

Fellow TDR members,
I went to the dealer this morning and talked with the person in charge of the service contracts. while reading over the Plan provisions I found a section in it that states"If your vehicle is reposessed or rendered a total loss and your plan was financed with your vehicle,your rights under this contract transfer to the lienholder. The lienholder is then responsible for requesting termination of the contract through the Dealer where the Plan was purchased". The guy I talked with said that seeing how the truck is being financed through Chrysler Credit the cancellation of the Plan would cause the amount refunded to be transferred to Chrysler Credit and it in turn would be added on to the back end of the loan thereby eliminating about two monthly payments. I understand that this route would not change my monthly payments at all. He saw how much the truck was sold for and said "WOW! this is a $34,000. 00 truck, are you sure you want to do this because the older the truck gets the more problems you may encounter with it,besides this has the diesel engine". IMHO I don`t see any problems arising just because it has the Cummins engine. I then told him I need to think this over some more before I make this decision. Folks I am thinking of just leaving it the way it is now with the 7/75 coverage and go with it. I do know this for a fact,The next new or used vehicle I decide to purchase, I WILL NOT purchase any type of extended coverage through a dealer or any corp. associated with the dealer because it is a crock of I TRIED TO BY-PASS THE CUSSING FILTER. I guess i`ll have to eat this and hope that if anything does go wrong with my truck that this Plan will do the trick.
Regards,

Phil Stuart


------------------
`01 2500,QC,LB,4WD,ISB,5SPD,
355 LSD,Tow Pkg. ,Forest green PC,Mopar alum. side steps,Mopar Mud flaps,Mist gray seat covers,Tekonsha brake controller. Bone stock and plenty of power. THE BIG GREEN MACHINE.
Built in St. Louis
Phil Stuart

I`M GLAD TO BE CUMMIN`