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Old 03-18-2015, 10:25 AM   #1
XDCX
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Default Can Dealers prevent Chrysler from sending Service Contract offers to their customers?

I wanted to create a new thread based on this excerpt from an existing thread:

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Originally Posted by mryan55 View Post
Yes, a slippery slope indeed. Chrysler Service Contracts is still marketing directly to retail customers. It gets us in a trick bag when we sell a Zurich warranty and FCA is marketing their lifetime warranty to the customer 90 days after purchase. We end up with a lot of cancellations that we convert to the Chrysler Lifetime Max Care but at a much lower profit than the Zurich warranties we offer.
In the old days Chrysler used to provide an option on the NVDR which indicated the customer was sold a non-Chrysler Service Contract. Chrysler agreed they would not solicit these customers but they would send out a disclosure letter to let the customer know the Service Contract was not factory backed. Is this still an option or not?
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Old 03-18-2015, 08:16 PM   #2
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This option is still there... however later on down the line there are advertisements about Chrysler Group Service Contracts... or whatever they call it now.

Of course, there really isn't a better value out there than the Chrysler lifetime warranty... cost is up to around $2,100 for a $100 deductible MaxCare these days, but thanks to less than favorable claims histories many of our third party warranties cost the same or more anyhow.

It's usually the politics of being a dealer group that keeps us selling Universal Underwriters/Zurich service contracts.
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Old 03-19-2015, 10:53 AM   #3
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Quote:
Originally Posted by mryan55 View Post
This option is still there... however later on down the line there are advertisements about Chrysler Group Service Contracts... or whatever they call it now.

Of course, there really isn't a better value out there than the Chrysler lifetime warranty... cost is up to around $2,100 for a $100 deductible MaxCare these days, but thanks to less than favorable claims histories many of our third party warranties cost the same or more anyhow.

It's usually the politics of being a dealer group that keeps us selling Universal Underwriters/Zurich service contracts.
Thanks for the update.

It's interesting to hear that there's still an option to prevent the Service Contract solicitation letter but it doesn't really eliminate the solicitation it just delays it.

In the old days that would have been an interesting topic for Dealer Council to pursue - I'm not sure if Dealer Council tackles issues like that anymore?
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Old 03-19-2015, 07:28 PM   #4
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I think more stores than ever are selling Chrysler Group Service Contracts... so maybe it is less of an issue? The program is actually pretty competitive vs. pre-BK, it's just group politics that keep us from selling them regularly.
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