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Value/cost of a 12month/12K Service Contract

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Old May 30, 2008 | 08:19 AM
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Value/cost of a 12month/12K Service Contract

I'm considering purchasing a used 2006 Mega from a dealer and he's including a national 12 month or 12000 mile powertrain service contract. Not being a big fan of service contracts I'd like to negotiate that out of the price. How much is he paying for a 12/12 contract? I know I have not posted any specifics on the terms of the contract as I don't know so a general reply or personal experience example is all that's expected.
Thanks!
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Old May 30, 2008 | 08:29 AM
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Is it through Chrysler or an aftermarket company? If it is an aftermarket company I would not do it. Way too many stipulations if you read the fine print. If it is from Chrysler, they are much easier to work with. As for price I would need more details.
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Old May 30, 2008 | 08:31 AM
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It's most likely a third party contract and I'm not planning to get it. I just would like to know if it cost the dealer $50 or $500 so I know how much to knock off his asking price.
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Old May 30, 2008 | 12:01 PM
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Unless you know who the warranty is through it will be harder for anyone to help get you that info.
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Old May 30, 2008 | 12:42 PM
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call the dealership and ask how much they charge for a similar service contract.
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Old May 30, 2008 | 04:46 PM
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From: Alvin
Does the used 06 have more than 70K miles (for the powertrain warranty) or 100K miles (for the Cummins warranty)? Both should be transferable if it was a one owner truck.
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Old May 30, 2008 | 04:54 PM
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Originally Posted by SolarExpress
Does the used 06 have more than 70K miles (for the powertrain warranty) or 100K miles (for the Cummins warranty)? Both should be transferable if it was a one owner truck.
'06's have 3/36,000 powertrain, and 5/100,000 engine only. the 7/70,000 powertrain, ended with the '05's.
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Old May 30, 2008 | 05:01 PM
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It was a one owner truck but he put 137K on it so that was that. I was thinking that a basic 12/12K would be around $2-300 to $500 full "retail" price. I didn't realize there was so much variance in the different companies. Might be a mute point though as I negelected to ask about the gearing right out of the gate. It's a 4.10 and I don't pull anything regularly so I need/wanted a 3.55 for better fuel mileage. It does have 285/70's on it but I don't think that will make up the diff, if have any positive impact on MPG at all. I'd guess a 2006 3500 Mega single axle with a 4.10 would top out at 16-17 rolling down the highway and do about 14-15 around town. Anyone with a setup like this please chime in...

Thanks Everyone!
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Old May 30, 2008 | 05:39 PM
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I think your only options are a 3.73 or 4.10. If it is a manual, the only option was the 3.73s as far as I can remember. If it is an auto, highway gearing with the 4.10s probably matches the 3.73s on the G-56s (manual). I would say you are fairly close to the average mileage numbers, I see about 15 MPG long term average swinging 35s with a 4.5 inch lift. Mileage on these truck is really dependant on how you drive (the faster you go on the highway the worse it gets). And that is alot of miles on an 06, what was the truck previously used for? When I see that kind of high miles in a short period I usually think it was used for hot-shotting. As for looking up what the warranties cost, best bet is to do a search on the internet and see what they are going for.
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Old May 30, 2008 | 05:56 PM
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It's an automatic. The Carfax shows it was used commercially in SC and only had one owner so I don't think it was hot-shotted. With a little rear bumper trailer damage, it looks like it was a hauler. It's actually on ebay right now item 200227789128. They're pretty firm on the $22, so far but it topped out at $19,100 last go round.
So 3.73 or 4.10? Isn't a 4.10 with 285/70's pretty close to 3.73 gearing with stock tires? Would 20MPG be possible with a sensible foot?
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Old May 30, 2008 | 11:22 PM
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Originally Posted by billv45
It's an automatic. The Carfax shows it was used commercially in SC and only had one owner so I don't think it was hot-shotted. With a little rear bumper trailer damage, it looks like it was a hauler. It's actually on ebay right now item 200227789128. They're pretty firm on the $22, so far but it topped out at $19,100 last go round.
So 3.73 or 4.10? Isn't a 4.10 with 285/70's pretty close to 3.73 gearing with stock tires? Would 20MPG be possible with a sensible foot?
$22K sounds way high for that many miles IMHO.....must have been running 24/7 as it is only 2 years old. Have you run the price by with kbb.com or nada.com?

Re mileage, my '06 3500 SRW 6 speed averages around 17.5 combined city/hwy.
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Old May 31, 2008 | 06:26 AM
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From: Ila georgia
www.kbb.com once it hits 100k the value plumets.
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Old May 31, 2008 | 08:41 AM
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The price seems to be in line with KBB which puts it $19-$21K but NADA and edmunds are WAY high! Like hovering around $30K. Has NADA and Edmunds become the "sticker" price from decades ago? A bogus number to make the consumer think he pulled a fast one with a dealership? Or is the value of our trucks plumeting so fast that only one service can keep up?
The PO did drive this truck a bit, probably close to 24/7 but the mileage hit is only $2-5K (and the 5K is on NADA!)
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Old Jun 1, 2008 | 09:12 AM
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Originally Posted by billv45
The price seems to be in line with KBB which puts it $19-$21K but NADA and edmunds are WAY high! Like hovering around $30K. Has NADA and Edmunds become the "sticker" price from decades ago? A bogus number to make the consumer think he pulled a fast one with a dealership? Or is the value of our trucks plumeting so fast that only one service can keep up?
The PO did drive this truck a bit, probably close to 24/7 but the mileage hit is only $2-5K (and the 5K is on NADA!)
Yes, I think the price guides are a few steps behind the real world values. If you watch eBay for a week or so and watch actual completed sales (specify that in the search options) you might get a better snapshot of todays' prices.

If you aren't in a big hurry I think you will find a lot of low mileage late model trucks on the market soon. Mine is 2 years old and only has 13K miles on it and is sitting in the backyard with a cover on it at the moment. The only time I drive it lately is to tow the boat or pick up materials at Home Depot. $5/gal+ fuel makes you think twice about which vehicle to take to the grocery store!!!!

Regarding $30K for a used '06, if you look real hard I bet you can find a brand new '08 for not much more. Personally, I'd look for a '07 5.9L holdover or exec/demo....bet there are still a few around if you look hard and are willing to fly out, drive home

Good luck!
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