Buying ext. warranty in FL- price negotiation illegal?

[Bill Pemberton Woodhouse]

Your dealer is correct that he has to charge you a set fee as Florida is one of three " No Rebate" states. He is incorrect if he said you could not purchase out of state, as you can purchase a Chrysler contract from any dealer you want - Florida or elsewhere. Alan is frustrated as he feels dealers keep changing the prices, and what he is unaware of ( and many dealers are finding out now, also, after taking losses on sales of these contracts )is that Chrysler charges a $100 surcharge after the vehicle is 1 yr old or has 12,000 miles on it. They then assess a $300 surcharge after the vehicle is 2 years old. When you factor in that Chrysler also has a price increase every year, it is not unusual to see a price differential of up to $500 from what customers were quoted when the car was new. I always recommend a owner gets the contract when new, because I have no idea what DC will do 3 years down the road. Buy with confidence wherever you want and your contract will be honored at all Dodge Dealers that have a Viper Tech.

 

[FikseGTS]

when my engine went out for a rebuild, 2 months before the factory warranty was up, I asked the dealer (in south florida) fixing the car how much the extended warranty was....

the max care 4 year 50000 was like 2600..... I bought it from pemberton for $1600 or so.... got my paperwork, warranty credit card and all... no problems...


Brooks

http://viper.miamisci.org

 

[Bill Pemberton Woodhouse]

Quick explanation of insurance term , " No Rebating. " As the Insurance Industry is highly regulated to insure fair prices based on having funds available for families in the time of death, Life Contracts were designed to be able to be very secure instruments and agents & companies were not allowed to discount to customers. This makes alot of sense, but some states carried over the rule of no discounting to all Insurance Products. Since Ext. Service Contracts are not protecting families, businesses, etc., they are , in most states, not classifies under the same Insurance guildlines. Therefore many dealers will go well off the suggested Retail price, but dealers are under penalty of law ( severe fines ) in Florida and a couple of other states. They literally have no choice to reduce the price, they must charge their suggested retail.

 

[Steve Ferguson]

I guess since I work in the insurance industry, it's my turn to try and shed a little more light on what Bill said.

Bill is absolutely correct in his statement about "Florida" regulations. To keep this simple, since Florida has such a high number of elderly, the government is doing all they can to make sure that this contingent is not "taken advantage" of. (you might remember a little problem this same group have just filling out a ballot?)For years, insurance scams focused on the elderly. Well if that is the market you are attempting to feed on then Florida should be considered your meal ticket. Because of these unethical practices, the laws now make it much more difficult for these scams to occur. Obviously, it also makes it that much more difficult to conduct any type of insurance business.

While that dealer was giving you a line (some of them have yet to see the internet), most of these issues are designed to care for the group that needs to be cherished rather than taken advantage of!