Daimler Chrysler Service Contracts Ripoff, Gave ACV for Vehicle instead of fixing, Horrible Customer Service Troy Michigan

I will agree with the IL Jason on the fact that he did not get a copy of the service contract until after it was purchased.

I bought a new Chevy Colorado last month, and I got the GM Extended Warranty and I didn't receive a copy of the warranty until a few days later in the mail.

At no time was I shown or offered a copy of the terms and conditions of the warranty (Of course, having had a GM vehicle in the past, along with the extended warranty I was aware of this and other clauses)...

So, while I still believe that a resonable person would reasonably believe that a company wasn't going to pay $8000 to fix a $2000 car (Much like an insurance company wouldn't) the OP does have a small point. I don't think the point would get him anything, but I do agree with him.

Of course, then it becomes did the dealership NOT provide the details when asked? If that's the case, then the OP has a solid, legitimate beef. Which could be weighed down by the fact that the OP didn't attempt to cancel the extended warranty after receiving a copy that was unacceptable to him.

I do feel for you, and understand why you would be upset at this. However, the best recommendation that I can throw out is to not do business with DC again. Specifically the Dodge brand.

As for the timing belt/chain.. One or the other, not both. MOST vehicles today use a timing belt for the simple reason that they do not make as much noise as a chain does. In today's car world, people would rather have a quiet engine that has a $200 replacement part every 80,000 miles, than a noisier engine that will probably never need a replacement part(So far as the timing chain goes). However, it is dumb to use a timing belt on an interference engine IMO.

We Do have GAP Insurance but they have never processed a claim where the warranty company has been the one to total the vehicle and therefore they have sent the claim to there legal department. We are still waiting to hear if they are going to pay or if we are going to have to fight to have them pay the balance.

Your right they do state in the contract that they can choose to Cash Value out the vehicle if the cost of the repair exceeds the value of the car. BUT you do not find this out until after you have already purchased the warranty, it is never disclosed to you at the time of purchase of the warranty and it is no where on the original agreement not even in small print. Therefore they are decieveing the buyers of the warranties. Consumers have no clue this can happen to them.

And as far as Dodge Intrepids and Timing chain problems go visit
DAIMLERCHRYSLERVEHICLEPROBLEMS.COM and read up about it. These engines are just plain bad engines and the consumers are paying the price. Also a Timing chain and Timing Belt are two seperate things and a car has both.

Your right they do state in the contract that they can choose to Cash Value out the vehicle if the cost of the repair exceeds the value of the car. BUT you do not find this out until after you have already purchased the warranty, it is never disclosed to you at the time of purchase of the warranty and it is no where on the original agreement not even in small print. Therefore they are decieveing the buyers of the warranties. Consumers have no clue this can happen to them.

And as far as Dodge Intrepids and Timing chain problems go visit
DAIMLERCHRYSLERVEHICLEPROBLEMS.COM and read up about it. These engines are just plain bad engines and the consumers are paying the price. Also a Timing chain and Timing Belt are two seperate things and a car has both.

Your right they do state in the contract that they can choose to Cash Value out the vehicle if the cost of the repair exceeds the value of the car. BUT you do not find this out until after you have already purchased the warranty, it is never disclosed to you at the time of purchase of the warranty and it is no where on the original agreement not even in small print. Therefore they are decieveing the buyers of the warranties. Consumers have no clue this can happen to them.

And as far as Dodge Intrepids and Timing chain problems go visit
DAIMLERCHRYSLERVEHICLEPROBLEMS.COM and read up about it. These engines are just plain bad engines and the consumers are paying the price. Also a Timing chain and Timing Belt are two seperate things and a car has both.

Your right they do state in the contract that they can choose to Cash Value out the vehicle if the cost of the repair exceeds the value of the car. BUT you do not find this out until after you have already purchased the warranty, it is never disclosed to you at the time of purchase of the warranty and it is no where on the original agreement not even in small print. Therefore they are decieveing the buyers of the warranties. Consumers have no clue this can happen to them.

And as far as Dodge Intrepids and Timing chain problems go visit
DAIMLERCHRYSLERVEHICLEPROBLEMS.COM and read up about it. These engines are just plain bad engines and the consumers are paying the price. Also a Timing chain and Timing Belt are two seperate things and a car has both.

Thank you

And a class action suit is a possibility and completely within the rights of the OP.

The person/people who are NOT at fault here are DCSC and the OP. The OP because they didn't do anything to cause the engine to fail, and DCSC because they are living up to the agreement.

My recommendation is that you don't put yourself in that situation again. Mainly by not getting "upside down" in a purchase or lease, where you wind up owing more money than the vehicle is worth. Not always possible, but I don't know the term of the purchase or whether the vehicle was purchased new or used.

Many dealerships offer GAP coverage now to protect against this very thing. Consider if you had an at-fault accident that totalled your vehicle. The insurance company is going to pay fair market value for the vehicle, and you'd be in the same boat.

GAP coverage pays the difference between what you owe on the vehicle and fair market value, if the vehicle is deemed a total loss. USAA actually offers this automatically if you finance a vehicle through them.

Jason is 100% correct in this matter, All service contracts have some sort of limit of liability. ACV (actual cash value) is the preferred limit and is rarley ever used. So Chrysler may be correct in this technicallity, but the 2.7 engine is notorious for oil lubrication problems. So much so that there is a consumer advocacy group searching for owners of these vehicle to start a class action lawsuit. Sorry I don't remember the name but I am sure if you google "chrysler 2.7 problems" you will find them. Good Luck

Nate.. I believe I did read the original post. The OP stated that nowhere did it say they could cancel the service contract. I did not ask that, I asked if anywhere in it they put it was their option to pay the cost of the vehicle vs repair.

OP says no in his reply, however, the fascinating thing is that you can find DCSC's online.

What is more, Under the DCSC section "A", it clearly states the following...

"IMPORTANT! The maximum reimbursable amount should a covered component fail will be THE TOTAL COST OF THE REPAIRS, PER VISIT, LESS THE DEDUCTIBLE, OR THE CASH VALUE OF THE VEHICLE WHICHEVER IS LESS!"

Our company used Intrepids as company vehicles until last year. We stopped using them due to the high rate of transmission failures, but did not have any timing chain failures. In fact, I have never heard of a low-mileage timing chain fail, which is why I asked about it. Most failures I have seen/heard of... Well, i've never seen one, because most vehicles use a timing belt now, but..

You can find a copy of the contract at http://www.extended-warranty-pro.com/plan_provisions.pdf.

Your move, Chuckles.

Nate-
That is exactly what happened to our vehicle, because these engines don't carry the oil properly because the valves are too small it did not allow enough oil to get to the timing chain and therefore when it snapped it wrapped around the cham shaft and destroyed the engine. DCSC certainly had the right to Cash out the vehicle as you stated it was extremly expensive to fix, but on the original Warranty agreement you sign no where on it does it state this can happen to you. We were left with one heck of a mess and DCSC has been absolutely no help. In fact they have treated us with the utmost disrespect. I have found that Daimler Chrysler is more than happy to sell you a vehicle but aren't so forthcoming to stand behind there vehicles when they are breaking down.

To Jason in Simpsonville:

The Chrysler 2.7 V6 is what is known as an 'interference' engine. This means that when the timing chain breaks or comes off, the pistons can actually contact the valves in the cylinder heads and bend or break them. The repair for this failure is usually VERY expensive.

The car in question is most likely a Dodge Intrepid. The Intrepid with the 2.7 V6 is a deplorably bad vehicle that is riddled with problems, including premature timing chain failure.

If you had bothered to read the original report, you would have seen that the author states that "no where on the warranty agreement that you sign at time of purchase does it say that they have this option to Cancel your warranty and not fix your vehicle"

If you are going to post useless drivel, at least make sure you read the report you file it on.

How does a timing chain blow an engine? And how does a timing chain go bad?

Obviously, it was past 36,000 miles, which means, as you stated, you were dealing with DCSC. Now, what does the extended warranty state? Does it state that if the cost of the repair exceeds the cost of the vehicle that they may, at their option, pay the cost of the vehicle?