Many automakers now offer protection on the powertrain up to 100k miles. I wonder if they would ever consider extending that on the bumper to bumper protection?
Bumper to Bumper warranties
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Isnt Hyundai the best around? 5 years 60K / Power train 100K / 5 years road side assistance
I doubt they would, and if they did I am positive that they would find every reason possible to attempt to deny a warranty claim... Chrysler offered a lifetime power-train warranty for a while, but if you read the fine print you will find out that in order for the warranty to stay valid you have to have the dealer inspect it on a certain interval and these types of things are very rarely free.
If people are interested in aftermarket bumper to bumper type warranties, I've had great luck with Mercury Insurance Group's mechanical breakdown protection. I got it through a credit union for an 05 Honda Accord I bought with 80k miles and so far every claim I have had (mostly interior & electronic related and power steering pump) went through with absolutely no hiccups and no deductibles. I had everything serviced at the dealer too.
If people are interested in aftermarket bumper to bumper type warranties, I've had great luck with Mercury Insurance Group's mechanical breakdown protection. I got it through a credit union for an 05 Honda Accord I bought with 80k miles and so far every claim I have had (mostly interior & electronic related and power steering pump) went through with absolutely no hiccups and no deductibles. I had everything serviced at the dealer too.
Originally Posted By: MinusPrevious
Isnt Hyundai the best around? 5 years 60K / Power train 100K / 5 years road side assistance
A few auto manufacturers have that same deal.
Considering I just purchased a 2013 Hyundai, I hope their warranty is the best around.
Isnt Hyundai the best around? 5 years 60K / Power train 100K / 5 years road side assistance
A few auto manufacturers have that same deal.
Considering I just purchased a 2013 Hyundai, I hope their warranty is the best around.
GM long life waraanty is a PR joke at 5y/100K. A normal driver does 12K per year so the "100K" is really a 60K for the average person. Typical GM.
Sometimes the warranties sound nice but trying to use them can be a pain and require alot of money put forth just to keep them going...sometimes rendering them not so much of a money saver and more of a time waster....you definitely have to be good at standing up for yourself alot of times too and that helps cover claims but dont just let them charge u up the rear for stuff....I dislike warranties and do most of my own work becuase usually they dont cover what you need and it more of a pain to fight it.
If one is even slightly handy it's easier/faster to make sure it's maintained well rather than fight out a warranty claim.
B2B warranties are more for catching obvious defects that show up after the vehicle is in use for a short while, not a maintenance plan.
Any "extended warranties" are basically a joke. The list of exemptions is typically longer than the list of covered items. Or it's parts-only, not labor too. GM's extended warranties are pathetic in what's covered. That being said, HondaCare seems like a decent buy on some models with a known history of problems, like the Odyssey. It's the exception.
On a personal level, my relatives used an extended warranty 2 times on their old Windstar when the transmission went out. Not sure what they paid for it, but they said it was cheaper in the end to buy it than pay for 2 transmission replacements out of warranty. They had the 3rd transmission installed and dumped that van for an Odyssey that's been a good van for them.
B2B warranties are more for catching obvious defects that show up after the vehicle is in use for a short while, not a maintenance plan.
Any "extended warranties" are basically a joke. The list of exemptions is typically longer than the list of covered items. Or it's parts-only, not labor too. GM's extended warranties are pathetic in what's covered. That being said, HondaCare seems like a decent buy on some models with a known history of problems, like the Odyssey. It's the exception.
On a personal level, my relatives used an extended warranty 2 times on their old Windstar when the transmission went out. Not sure what they paid for it, but they said it was cheaper in the end to buy it than pay for 2 transmission replacements out of warranty. They had the 3rd transmission installed and dumped that van for an Odyssey that's been a good van for them.
The Chrysler Service Contract (Chrysler's official extended warranty) is a complete joke. Avoid at ALL costs.
It is not terribly expensive if you purchase a manufacturer backed one for cost + small profit. For example I believe this can be had for around $1000 on a Acura MDX for 7yr/100k coverage from a dealer offering them on the web. Many times there are dealers who sell them on the web as a side business with a small amount of profit.
I believe a starting point when buying them at dealership is 100% markup at least when purchasing car. It is a cash cow for them.
I believe a starting point when buying them at dealership is 100% markup at least when purchasing car. It is a cash cow for them.
I never pay for those. Why? If the car has a known defect then why get it in the first place? Sure, on rare occasions the end user gets their money's worth out of those extended warranties, but in general they are stacked in favor of the seller, not the buyer.
Originally Posted By: fusion0389
Chrysler offered a lifetime power-train warranty for a while, but if you read the fine print you will find out that in order for the warranty to stay valid you have to have the dealer inspect it on a certain interval and these types of things are very rarely free.
The inspection is every 5 years. I just had mine done and it was free, with no problems found, and no upsells offered.
Chrysler offered a lifetime power-train warranty for a while, but if you read the fine print you will find out that in order for the warranty to stay valid you have to have the dealer inspect it on a certain interval and these types of things are very rarely free.
The inspection is every 5 years. I just had mine done and it was free, with no problems found, and no upsells offered.
Originally Posted By: fusion0389
I doubt they would, and if they did I am positive that they would find every reason possible to attempt to deny a warranty claim... Chrysler offered a lifetime power-train warranty for a while, but if you read the fine print you will find out that in order for the warranty to stay valid you have to have the dealer inspect it on a certain interval and these types of things are very rarely free.
IMO they came out with this out of near bankruptcy desperation and left them the five year plan as an out. Gives them five years to think of things to fail on inspection if they all still had jobs waaay far in that future.
I doubt they would, and if they did I am positive that they would find every reason possible to attempt to deny a warranty claim... Chrysler offered a lifetime power-train warranty for a while, but if you read the fine print you will find out that in order for the warranty to stay valid you have to have the dealer inspect it on a certain interval and these types of things are very rarely free.
IMO they came out with this out of near bankruptcy desperation and left them the five year plan as an out. Gives them five years to think of things to fail on inspection if they all still had jobs waaay far in that future.
Originally Posted By: Eddie
GM long life waraanty is a PR joke at 5y/100K. A normal driver does 12K per year so the "100K" is really a 60K for the average person. Typical GM.
Pretty brilliant marketing IMO. The eye/mind always looks at the biggest number/ best case scenario. Like highway MPG instead of city or combined.
GM long life waraanty is a PR joke at 5y/100K. A normal driver does 12K per year so the "100K" is really a 60K for the average person. Typical GM.
Pretty brilliant marketing IMO. The eye/mind always looks at the biggest number/ best case scenario. Like highway MPG instead of city or combined.
I doubt they were go bumper to bumper for that long. Too many things to cover and too many people who would probably try to abuse it.
Ideally I would never own a car that requires an extended warranty, although I have considered buying a car I really want, where its reliability is questionable, and just factoring in a warranty into my overall price and doing my best to make the dealer meet my demands.
I think I'd be more into the idea if I at least knew of an extended warranty company that was solid. I know manufacturer backed programs are usually ok, and companies I believe to be "customer oriented" like USAA and Costco offer warranties via third-party. I mean I really find it hard to believe that an institution like USAA, which is consistently noted as somewhere you can rely on being "taken care of" would be pushing shady auto warranties on its members.
Ideally I would never own a car that requires an extended warranty, although I have considered buying a car I really want, where its reliability is questionable, and just factoring in a warranty into my overall price and doing my best to make the dealer meet my demands.
I think I'd be more into the idea if I at least knew of an extended warranty company that was solid. I know manufacturer backed programs are usually ok, and companies I believe to be "customer oriented" like USAA and Costco offer warranties via third-party. I mean I really find it hard to believe that an institution like USAA, which is consistently noted as somewhere you can rely on being "taken care of" would be pushing shady auto warranties on its members.
It's obvious that the paid-for extended warranties are a bad deal for the typical consumer. The sales mark-up is over 50%, and the insurance company wants a 50+% gross margin. That means the expected pay-out will be well under 20% of the price.
I understand that insurance isn't supposed to be a money-maker for the consumer. It's coverage for a unlikely failures that would be devastating. But the fine print excludes so many types of failures that it's not really providing that protection. Paradoxically they insurance companies benefit from more high-profile failures, since that creates demand without advertising. So really this type of warranty is just taking money with little benefit.
Manufacture's warranties are a much different proposition. They are covering design, fabrication and assembly mistakes. Since these failure happen in groups, they are more likely to be recognized as valid warranty claims and be fixed with little hassle. And since the payout is being made by the same company that made the mistake, it encourages them to fix the problem correctly and do everything economically feasible to avoid the problem in the next model.
Back to the original poster's question: driveline failures in the warranty period are rare. And they cost surprisingly little to fix. While driveline components tend to be expensive at retail, the internal cost is low. Generally they don't take a lot of labor, the time estimate matches the actual time taken, and dealers are paid for that labor at cost (which they don't like at all).
Other failures are much more common, and generate a big proportion of a dealer's profit. Changing a window regulator can bill at two or three hours of labor when it takes half that, and there is a 60+% margin on the part. That's a revenue stream they don't want to give up.
I understand that insurance isn't supposed to be a money-maker for the consumer. It's coverage for a unlikely failures that would be devastating. But the fine print excludes so many types of failures that it's not really providing that protection. Paradoxically they insurance companies benefit from more high-profile failures, since that creates demand without advertising. So really this type of warranty is just taking money with little benefit.
Manufacture's warranties are a much different proposition. They are covering design, fabrication and assembly mistakes. Since these failure happen in groups, they are more likely to be recognized as valid warranty claims and be fixed with little hassle. And since the payout is being made by the same company that made the mistake, it encourages them to fix the problem correctly and do everything economically feasible to avoid the problem in the next model.
Back to the original poster's question: driveline failures in the warranty period are rare. And they cost surprisingly little to fix. While driveline components tend to be expensive at retail, the internal cost is low. Generally they don't take a lot of labor, the time estimate matches the actual time taken, and dealers are paid for that labor at cost (which they don't like at all).
Other failures are much more common, and generate a big proportion of a dealer's profit. Changing a window regulator can bill at two or three hours of labor when it takes half that, and there is a 60+% margin on the part. That's a revenue stream they don't want to give up.
Some folks like warranties (and even payments no suprises). If a $1000-$1500 warranty keeps them in a vehicle 1-3 years longer it may be worth it. The depreciation bailing each year earlier in years 1-5 of a new vehicle is far more expensive than the cost of an extended warranty.
There are two types of people in the world; who buys $50 extended warranty on their $200 purchase "for the peace of mind" and others who buys stuff which is statistically not likely to break and assume the risk if it does.
Dynamics of those groups are completely different.
Dynamics of those groups are completely different.
JHZR2
Staff member
I can see how a highly technological vehicle with lots of gadgets could have a tendency for funny things to happen, justifying a 7yr 70 or 100k warranty (or whatever the use profile is). Thing is, the more complex the car, the more expensive the warranty. And if someone buys a really complex car and doesnt have the money to upkeep it in case of a component failure, they are a fool and bought too much car.
So while I can see a place for them from some angles, I think living within one's means and self-protecting is the way to go. I suppose if you get a real lemon, there is a benefit, because nobody wants to be paying out $1k month after month on a relatively young car because stuff is acting funny...
So while I can see a place for them from some angles, I think living within one's means and self-protecting is the way to go. I suppose if you get a real lemon, there is a benefit, because nobody wants to be paying out $1k month after month on a relatively young car because stuff is acting funny...
Always remember that the extended warranty is really an extension of what you already have in the std warranty.
Originally Posted By: JHZR2
I can see how a highly technological vehicle with lots of gadgets could have a tendency for funny things to happen, justifying a 7yr 70 or 100k warranty (or whatever the use profile is). Thing is, the more complex the car, the more expensive the warranty. And if someone buys a really complex car and doesnt have the money to upkeep it in case of a component failure, they are a fool and bought too much car.
You know what the funny thing is. Most of my friends and family have the exact opposite viewpoint. In their mind the more expensive the car, the less likely hood of stuff breaking and the maintenance should be less as well, because the car is "better engineered". I am not kidding.
I bet that a lot of non car oriented people have a similar view and think that the saying "you get what you pay for" fully applies to the luxury cars. That would explain the lack of maintenance the average, leased BMW or Merc gets.
I can see how a highly technological vehicle with lots of gadgets could have a tendency for funny things to happen, justifying a 7yr 70 or 100k warranty (or whatever the use profile is). Thing is, the more complex the car, the more expensive the warranty. And if someone buys a really complex car and doesnt have the money to upkeep it in case of a component failure, they are a fool and bought too much car.
You know what the funny thing is. Most of my friends and family have the exact opposite viewpoint. In their mind the more expensive the car, the less likely hood of stuff breaking and the maintenance should be less as well, because the car is "better engineered". I am not kidding.
I bet that a lot of non car oriented people have a similar view and think that the saying "you get what you pay for" fully applies to the luxury cars. That would explain the lack of maintenance the average, leased BMW or Merc gets.
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