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Dodge XWRP warranty scam?


Rizzo

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Virtually all new car dealerships have an F&I administrator and they all offer after purchase packages because there's way more profit in the finance, warranty, rustproofing etc than profit in the sale of the car itself. Yes the dealer principal can make loads of money from bonus programs and incentives from the OEM's but they never seem to count that revenue when looking at day to day operation of the business. Kickbacks from financial institutions, huge markups from warranties and  chemical aftermarket add ons like rustproofing, fabric protection make for a very lucrative day to day opportunity for dealers. These business factors drive the consolidation of OEM brands under dealer groups. This is what pundits are talking about when they discuss consolidating multiple brands under one back store at a dealer group. 

The problem, as always, when business "improves" operational efficiancy is that the consumer gets screwed virtually 100% of the time. This is what has happened here, the dealership made money (probably 50%) the warranty scheme made money (the other 50%) and the consumer got screwed (lost 100%). 

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  • 3 weeks later...

I told my salesman , when I bought my 2016 sierra, (3rd truck with him) that if the finance guy tries to sell me anything besides completing the sale, I will walk out the door without buying a truck there. Sure enough my salesman told the finance guy and when I sat with him he teased me about taking extended warranty and quickly said he was just teasing....Be upfront about it. Let them know that if they attempt to sell more stuff, electric rust proofing lol or extended anything is when you get up and walk out if they do not listen to you the customer.

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  • 3 weeks later...

Hi everyone, I have been through a similar experience with XWRP extended warranty scam. I got mine through Mazda when I got my CX5 in 2013. I had never purchased an extended warranty until that day. I was told that I would get a full refund if I didn't use it. I thought what the heck, for the sake of losing out on a wee bit of interest, why not? 

This February, I went to the dealership to begin the refund process and asked them if they had a copy of the contract (at that time I couldn't find mine...but found it later). They said they didn't keep copies after 2 years. I thought what the hell, how can you not keep contracts that last 6 years for, I don't know, 6+ years. Anyways, luckily I found mine, but this foreshadowed more trouble coming.

I did get the letter from the dealership stating that I did not use the extended warranty. They uttered not a peep about going over alotted km. I faxed the pages as required to XWRP. I called them to confirm they got them. They did. I asked if there was anything else required. They said no. Then a week later I got a letter asking for the maintenance reports. I was getting ticked by now. I managed to get the report and fax that off. 

A week later I received notice that I did not qualify for a refund as the contract must expire "by time only."

 

I had driven over 300k in the 6 years. If I had known that going over 120k would be an issue, I never would have purchased the extended warranty.

 

I have gone back to the dealer and tried to get their help. As you would expect, they were friendly, perhaps mildly sympathetic, but could not help.  I have started a complaint at BBB and emailed The Star's "The Fixer." Next step is to get after XWRP and after that start a small claims file.xwrp_1a.thumb.jpg.1592e126697b7e59a127cdd65cb7f772.jpg

 

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Hi Tomkat, no it is not spelled out there, for sure. "expire by time only" is about as vague as you can get.

Apparently, Mazda is now offering an extended warranty with a different company. I asked to see the contract and it is spelled out in clear terms that going over the allowable km will cancel the contract. Additionally, if you do qualify for a refund, you'll get less than 70% back. I'm going to go out on a limb here and say it's probably due to the blowback they have gotten.

 

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if you look at the first one you hi-lited it says it must expire "by time only"...they got you. Its usually a 5 year 100,000km warranty or something like that. Your warranty expired at the 100 k mark...but you weren't allowed to apply for your refund until the 60 month mark...and your warranty was long over by then. This is the fine print that is NEVER mentionned by the salesperson. How people sell this crap knowing you will get screwed in the end is the part that really gets me. This is why I had MORE of a beef with my dealership than I did with XWRP. At the end of the day both are clearly dishonest

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Someone mentioned there is more profit in the "add ons" that a sales guy will try and convince you is a must. They make even more $$$ doing dealer service. I had the brakes lock up on my Silverado out of the blue air a last summer. Their price for the fronts was no less than $2500.00. I had it done by my guy that is recognized by GM for warranty work if any for around 1500 bucks. Still ridiculous but it's 2019 not 1989. I would have done them myself with help back then. 

When we bought the new truck in 011' the manager gave me the pitch. When he got to the undercoat (scam to me) I got up and said I better cancel the sale. "You just told me that brand new truck is going to rust within 7 years, I don't want to buy a rust bucket!" I thought he was going to stroke out. 

They offer these deals on used cars as well. 

Edited by Old Ironmaker
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I bought a new  F150 Lariat pick-up this past spring and it was about the best buying experience I ever had with a new vehicle. They gave me the price, I countered and we went back & forth a couple times and the deal was done and we were both happy. 

Never once was I pressured to buy a single extra including extended warranty and the only extras I did get were the ones I asked for and I had them included in the price.

Very pleasant buying experience and nothing like the horror stories related in this thread and if anyone else is looking for a similar deal go have a talk with Country Ford in Bobcaygeon.

 

Edited by lew
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That's cool, I've said it before though, I wouldn't bother with letters, emails, complaints, and added stress, it would be straight to the court house and asking for $25k for the refund, plus stress and aggravation and loss of quality of life for the whole ordeal.

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4 hours ago, lew said:

I bought a new  F150 Lariat pick-up this past spring and it was about the best buying experience I ever had with a new vehicle. They gave me the price, I countered and we went back & forth a couple times and the deal was done and we were both happy. 

Never once was I pressured to buy a single extra including extended warranty and the only extras I did get were the ones I asked for and I had them included in the price.

Very pleasant buying experience and nothing like the horror stories related in this thread and if anyone else is looking for a similar deal go have a talk with Country Ford in Bobcaygeon.

 

Lew, you are as intelligent a gentleman as you are a big. A Ford Lew, a Ford? Oh my goodness grazioso. You must have gotten a great deal. I am positive the sales guy said to himself, "Save my breath, this guy ain't drinkin' the Cool Aid." I just watched an episode of Drive TV, Canuck show, and Ford offers no less than 950 different versions of the F-150. Please make up your mind Ford.  Please don't tell anyone but this Chevy driver actually likes the look of them now. I bought the Chevy because it was 10 grand less than the similar F-150 my neighbour paid. 

PS. I was just outside Burleigh Falls a few weeks ago picking up a vehicle a buddy bought. The area has changed for sure. Maybe you haven't noticed because you live there, big changes compared to the 80s. But what hasn't including Mullets? Lovesick Lake Camp looks so small today. I still have flash backs going down the rapids and going over the Falls at 2AM, no boat, just drunk. That was 2 trips to Emerg within 24 hrs. got hit by a cab outside the "I Can't Remember Hotel " and the white water rafting sans boat. The town Prince Philip went to College. 

Edited by Old Ironmaker
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  • 2 months later...

Hey guys,I have the same problem with XWRP.I just put in a claim after 5 years and I got a Letter stating that I was over the km allowance.I had 120,000km after 5 years..No where in my contract does it say anything about kilometers, only time.Maybe Im missing something but does anyone see anywhere in the contract about excess kms

 

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Bill is correct, take them to court...FAST, because the next thing we will hear about XWRP is that they have gone bust. This is what happened to International Warrenty  years ago  leaving everyone in the lurch. What a ridiculous situation for OMVIC to allow. They must spend their days over there sitting on there hands drinking coffee waiting for the next wage negotiations.

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