Maxcare Lifetime Warranty, Florida is Screwed - Page 2 - 2014+ Jeep Cherokee Forums
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post #11 of 48 (permalink) Old 04-24-2016, 02:20 PM
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Originally Posted by FloridaTH View Post
Great info enki! Many thanks! I didn't contact Zeller Motors, figuring I'd get the same results. Just shot off an email to them inquiring about a quote. I'll check back in here when I receive his information. Hopefully Zeller Motors isn't playing this warranty game.
Glad to help and wish you luck. I would recommend emailing Clay directly (clay@zeller...). He actually responded to me while he was on vacation and took care of the transaction the day he got back.

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Originally Posted by SamDoe1 View Post
The biggest benefit of the Florida law is that you can transfer the lifetime warranty to the next owner for $40. This isn't allowed anywhere else and should SUBSTANTIALLY improve the resale value if you do decide to sell it. The resale value improvement should make up for the extra cost up front.
True, it is a nice benefit. One other state (I believe NC off the top of my head, but don't quote me on that) offers it as well. While that would definitely apply to a purchase from a FL dealer, I don't know if it would if you got it out of state or if moved from out of state to FL when you sell it. Also, I don't know if you would get as much back as it would cost in premium price to get it from a FL dealer (about $1500 more).

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post #12 of 48 (permalink) Old 04-24-2016, 03:17 PM
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Quote:
Originally Posted by enki View Post
Glad to help and wish you luck. I would recommend emailing Clay directly (clay@zeller...). He actually responded to me while he was on vacation and took care of the transaction the day he got back.



True, it is a nice benefit. One other state (I believe NC off the top of my head, but don't quote me on that) offers it as well. While that would definitely apply to a purchase from a FL dealer, I don't know if it would if you got it out of state or if moved from out of state to FL when you sell it. Also, I don't know if you would get as much back as it would cost in premium price to get it from a FL dealer (about $1500 more).
It is NC and it is a $50 transfer fee, when I quoted Zeller's price to my dealer they matched it as opposed to losing the business.

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post #13 of 48 (permalink) Old 04-24-2016, 08:56 PM
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That law has been around for quite some time now and was geared towards protecting the customer from greedy F&I guys selling products way over inflated. It has lost some of its appeal due to the internet but at least it is a leveling playing field.
Anyone selling a discounted Mopar plan in Florida is breaking the law and violating FCA's dealer agreement to honor their states respective laws.
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post #14 of 48 (permalink) Old 04-24-2016, 09:34 PM
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it's not--it is for their Republican puppeteers profit margins.
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post #15 of 48 (permalink) Old 04-24-2016, 10:29 PM
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That law has been around for quite some time now and was geared towards protecting the customer from greedy F&I guys selling products way over inflated. It has lost some of its appeal due to the internet but at least it is a leveling playing field.
Anyone selling a discounted Mopar plan in Florida is breaking the law and violating FCA's dealer agreement to honor their states respective laws.
Good thing I couldn't care less about all that.

As I said before, this is another example of the government overreaching in its misguided attempt at protecting stupid people, resulting in nothing but problems for the rest of us. What's that saying about how the road to **** is paved?

In any case, odds are that out of state dealers will soon all stop selling to Florida residents at discounted rates since FCA is apparently cracking down on it. AFAIK, only Zeller remained as of a couple months ago. This is why I've mentioned in at least 2-3 other threads that anyone interested in getting one should act quick. With that said, nothing is prohibiting people from signing up using an out of state address. If you have a friend or family member in pretty much any other state, you can just get the paperwork sent there and then transfer it Florida. Easy peasy and no one will care. In the end, we may not get the transferability, but I'd rather save $1500 now.

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post #16 of 48 (permalink) Old 04-24-2016, 10:44 PM
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On a related note, I've been doing some background research on this supposed law, and fail to find anything that implies that dealers can not cut the prices. In fact, I found something quite to the contrary.

The statute that governs these types of plans in Florida is 634.121, which can be found here:
http://m.flsenate.gov/Statutes/634.121

Most of it is actually fairly benign and, if anything, benefits the consumer. It mentions the transfer requirement amongst other things like cancellation periods, etc. The last line is the most interesting. And I quote:
Quote:
(11) By July 1, 2011, each service agreement sold in this state must be accompanied by a written disclosure to the consumer that the rate charged for the service agreement is not subject to regulation by the office. A service agreement company may comply with this requirement by including such disclosure in its service agreement form or in a separate written notice provided to the consumer at the time of sale.
For the record, my contract states this in it.

What I find most interesting about this is how they very clearly and forcefully say that the rates for these plans are NOT subject to regulation. In fact, they want to make it clear that this is the case to the consumer. This means that all the "we can't lower our rates because the state regulates them" is BS. It doesn't say out of state dealers can't sell the policies or mentioned a single thing about keeping the pricing uniform at full retail. Again, it says they do NOT regulate them at all.

So here's what I am thinking. This price lock policy was not the state's cause -- instead it was FCA's business decision. Think about it. They don't just pull prices out of thin air. They do very careful studies to determine how they can still make a profit. Average life of a car, average failure rate, average cost of failures, etc. But all that math assumes one big thing -- that the owner is the same. They figure most people sell a car after X years, and price accordingly with the principle that the plan will be null and void after that. Then here comes Florida requiring transferability. There goes all the numbers. Now the length of covered ownership might have just doubled. They don't necessarily want to charge more for Florida residents, if they even can, since that might look bad. But they know that the vast majority is markup that is often lowered. So what do they do? They say no more markdowns in Florida because of 'state policies and regulations'. And this is where we stand today.

While IANAL, I've dealt with contracts and things like this all the time and while there may be another statute I'm not finding that contradicts my assumption above, it seems to me that the claim that the cost is regulated is clearly false.

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post #17 of 48 (permalink) Old 04-25-2016, 08:10 AM
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I get the $1500 savings as much as anyone and this law is not benefiting you on this occasion.

Why would FCA have any thing to do with this? FCA sells it to a dealer at dealer cost-the same cost for every dealer in the country. They make no additional profit whatever the dealer sells it or gives it away for.

I used to work with Chrysler Service Contracts and had a small section in Florida-did not study the law, but knew why it was there. FCA has nothing to do with it and Florida is not the only state with that exception.
Good luck!
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post #18 of 48 (permalink) Old 04-25-2016, 08:34 AM
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I get the $1500 savings as much as anyone and this law is not benefiting you on this occasion.

Why would FCA have any thing to do with this? FCA sells it to a dealer at dealer cost-the same cost for every dealer in the country. They make no additional profit whatever the dealer sells it or gives it away for.

I used to work with Chrysler Service Contracts and had a small section in Florida-did not study the law, but knew why it was there. FCA has nothing to do with it and Florida is not the only state with that exception.
Good luck!

Well maybe FCA isn't playing games here, but I still think that this claim about the law requiring fixed rates is misleading at best. If the rates were truly regulated as they claim, why would the law state that the contracts should clearly say they aren't?

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post #19 of 48 (permalink) Old 04-25-2016, 09:03 AM
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My take on this issue has multiple parts:

1. Legislators, whether at local, state or federal levels rarely consult "The People" before enacting laws that restrict commerce or other activities. Local, state and federal government agencies are are empowered by law to create regulations, and they never consult "The People" before creating their rules. As a result of this lack of transparency, agency regulations tend to be more onerous than publicly negotiated legislation.

2. In the overwhelming majority of cases, the people who are controlled by laws and regulations do not understand them because the entities that create the restrictions are not required to publicize or explain them, which means that they are subject to interpretation. This interpretation happens when an unhappy citizen or group of citizens brings their complaints to a judge. It's a really screwy way to run a railroad – or a country.

3. Service agreements are products, just like Cherokees are products. FCA has a set "dealer cost" for these products; dealers are free to make as much or as little markup as they want on the FCA products they sell. Zeller Motors has chosen to make a slim margin on the service agreements they sell, figuring they'll make money on volume rather than margin (markup).

4. I would bet money that Florida dealers have complained to FCA as a group about dealers in other states discounting the plans; Florida dealers have decided to "interpret" the regulation to mean that service agreements can't be sold at discount in Florida as grounds for their complaint. FCA may or may not have instructed dealers to stop selling the plans at discount, but it gives dealers an "out" if they stop discounting the plans. It's easy to deflect anger by blaming a policy on "corporate." This is probably less about overreaching government than it is about greedy dealers wanting to restrict competition.

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post #20 of 48 (permalink) Old 04-25-2016, 09:30 AM
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It's easy to deflect anger by blaming a policy on "corporate." This is probably less about overreaching government than it is about greedy dealers wanting to restrict competition.
I had thought about this as a possibility, but I highly doubt it would be the case. Assuming that dealers just decided to band together to make this 'interpretation', since it's in their own best interests, it would take a coordinated effort from many different people, all with their own conflicting self-interests. Florida is a pretty big state and I have to assume there are dozens of Jeep dealerships. For them all to have this policy and refuse to veer from it indicates to me that someone with authority told them not to. I'm not saying that it wouldn't be smart of them to do it -- quite the contrary. But I just don't see that level of coordination being possible.

However, I do agree with your standpoint that this entire situation could simply be the result of someone's misinterpretation of a statute which then spreads until it becomes the de facto answer for everyone. I've gotten into arguments with lawyers because they said something completely contradicting the law. When I finally pressed them on it, their response was basically "well this is how everyone decided to interpret it", even though they're basically saying A doesn't equal A, it equals B. But only occasionally.

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