Costco Battery Warranty Changed

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Nick1994

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My brother needed a new battery for his truck yesterday so we went to Costco for a $99 Group 78 Interstate. Was told that in July Costco changed their battery warranty so that they are no longer a 3 year free replacement. Now it’s prorated about 3ish% per month, so after 18 months it would be about 50% a new one. But, the replacement starts over with a fresh 36 month prorated warranty. We ended up getting it anyways.

I mean it makes sense. Costco was pretty famous for not testing batteries and people exchanging them right before the warranty is up.

So the only option I know of now for a true hassle free 3 year free replacement is buying and warrantying a battery from a Walmart that doesn’t have an auto-repair center. The customer service desk will just return it within the warranty period no problem.
 
My brother needed a new battery for his truck yesterday so we went to Costco for a $99 Group 78 Interstate. Was told that in July Costco changed their battery warranty so that they are no longer a 3 year free replacement. Now it’s prorated about 3ish% per month, so after 18 months it would be about 50% a new one. But, the replacement starts over with a fresh 36 month prorated warranty. We ended up getting it anyways.

I mean it makes sense. Costco was pretty famous for not testing batteries and people exchanging them right before the warranty is up.

So the only option I know of now for a true hassle free 3 year free replacement is buying and warrantying a battery from a Walmart that doesn’t have an auto-repair center. The customer service desk will just return it within the warranty period no problem.
i would bet the battery manufacturer had Costco change the policy. they were getting back so many good batteries that they would lose money on them. Costco rarely loses out on returns . they have the vendor eat it
 
Here's the warranty:

Costco+Battery-Warranty+230710.pdf
 
I Bought EverStart Maxx at Wal-Mart about 3 or so years ago and it had a 3-yr warranty plus additional 2-yr pro-rated. At the time Costco had 36 months and Wal-Mart warranty was better and the batteries were the same price.

My previous battery before then was from Costco when they had a 42 months (3.5 years) warranty. After they changed from 42 to 36 months, I ditched them. Seems like it's getting worse now!
 
My brother needed a new battery for his truck yesterday so we went to Costco for a $99 Group 78 Interstate. Was told that in July Costco changed their battery warranty so that they are no longer a 3 year free replacement. Now it’s prorated about 3ish% per month, so after 18 months it would be about 50% a new one. But, the replacement starts over with a fresh 36 month prorated warranty. We ended up getting it anyways.

I mean it makes sense. Costco was pretty famous for not testing batteries and people exchanging them right before the warranty is up.

So the only option I know of now for a true hassle free 3 year free replacement is buying and warrantying a battery from a Walmart that doesn’t have an auto-repair center. The customer service desk will just return it within the warranty period no problem.
Sooner or later someone will ruin it for everyone. Yesterday, a lady was filling up her water bottle with soda, really? Surprisingly, a Costco employee said something to her so she left. In the meantime, we were behind a woman and her young daughter at the check out waiting to pay for our food order, when she turned around to us and said to us and her daughter, "That's why they don't have onions and kraut anymore", as hot dog condiments.
 
So now they're copying what Walmart used to do with the Everstart batteries (which was 3 year free replacement on the Maxx ones, then 2 year pro-rate - no starting over the warranty). Of course they cut out the pro-rate option completely because people kept complaining and asking why the battery wasn't free or why the warranty wouldn't start over
 
I'll still gladly buy batteries from Costco as long as the price makes sense. For my '96 Jeep Cherokee a battery at Costco is $81. The 1 year battery at Auto Zone is $129 and the 3 year is $209. It's a no-brainer. Same with my '07 Sonata. $109 at Costco or $179-209 at Auto Zone.
 
So now they're copying what Walmart used to do with the Everstart batteries (which was 3 year free replacement on the Maxx ones, then 2 year pro-rate - no starting over the warranty). Of course they cut out the pro-rate option completely because people kept complaining and asking why the battery wasn't free or why the warranty wouldn't start over
The newest Everstart Maxx battery I have was purchased more than three years ago. The extra 2 years of pro-rated warranty was already gone then. The one time that I went for replacement on a pro-rated Walmart battery was more than 20 years ago. It failed the test at a store with an auto service center and they still attempted denial and refusal until I convinced them otherwise.
 
I was there the other day and noticed this. Surprised it wasn't noted earlier, or in the Electrical sub-forum but alas…

A three-year pro rata warranty? When others still offer replacement warranties for the same periods? Have to think about that one. In my application, a Walmart equivalent Maxx is ~$40 more. How are those South Korean batteries in quality?

I've always disliked pro rata warranties, because the amortization tables and explicit terms are seldom, if ever, plainly disclosed upfront, and that kind of obfuscation is offputting, if not devious in some fashion.

I think the change is more the result of abuse, and people treating them like an exchange program that what IBS has to say.

For many years prior, Coscto was sourcing their battieries from the maker, Clarios (nee JCI), and branding them as Kirkland, as they do with many of their products. Direct sourcing, in high quantity, is Costco's game.

It doesn't make sense to me for them to change that to an arrangement where they buy through a middleman, like IBS, have units that can't be warrantied at any place other than Costco, in exchange for the use of the brand name that probably has little equity or importance to most of its shoppers anyway. Interstate (in name only) vs Kirkland doesn't seem like it would sway a lot of people.

If anything, it's not IBS putting any screws to Costco, it's Clarios. And if they can do that to one of the world's largest retailers, it can happen to anyone.

Unfortunately, now that this domino has fallen, others will probably follow as well.
 
I was there the other day and noticed this. Surprised it wasn't noted earlier, or in the Electrical sub-forum but alas…

A three-year pro rata warranty? When others still offer replacement warranties for the same periods? Have to think about that one. In my application, a Walmart equivalent Maxx is ~$40 more. How are those South Korean batteries in quality?

I've always disliked pro rata warranties, because the amortization tables and explicit terms are seldom, if ever, plainly disclosed upfront, and that kind of obfuscation is offputting, if not devious in some fashion.

I think the change is more the result of abuse, and people treating them like an exchange program that what IBS has to say.

For many years prior, Coscto was sourcing their battieries from the maker, Clarios (nee JCI), and branding them as Kirkland, as they do with many of their products. Direct sourcing, in high quantity, is Costco's game.

It doesn't make sense to me for them to change that to an arrangement where they buy through a middleman, like IBS, have units that can't be warrantied at any place other than Costco, in exchange for the use of the brand name that probably has little equity or importance to most of its shoppers anyway. Interstate (in name only) vs Kirkland doesn't seem like it would sway a lot of people.

If anything, it's not IBS putting any screws to Costco, it's Clarios. And if they can do that to one of the world's largest retailers, it can happen to anyone.

Unfortunately, now that this domino has fallen, others will probably follow as well.

I remember before their own branding (where JCI was clearly listed as the source), Costco had Energizer branded car batteries, and I think they had the exclusive license to use that name. I also remember seeing the JCI website back then, where they listed all the various brand names (and where to buy them) that JCI batteries were sold as, including Interstate, Eveready, Energizer, etc. Most were house brands, and it might have been before Sears went back to JCI.

However, Interstate doesn't have a sole supplier. One of their suppliers is Exide. I'm thinking this relationship was probably more complicated than most here would imagine. But I'm thinking it likely had a lot to do with the warranty policy and who pays when a battery goes back. I'm pretty sure that Clarios has a relationship with its customers where they're sold as is and its up to their customers to deal with warranty returns.
 
AAA has always been iffy in regards to battery testing and warranty IMO.

Costco has been and continues to be the best bang for your buck but limited locations and hours mean it’s inconvenient if you are stranded and need an instant solution. Of course in that case you can buy a replacement battery at the auto parts stores that are open til 10pm and bring the Costco battery in for a refund the next business day during regular business hours. So it’s probably worth the risk.
AAA for sure useless. They'll fight tooth-and-nail before admitting their battery failed, but more than happy to quickly throw theirs in if you're stuck with a dead car
 
I remember before their own branding (where JCI was clearly listed as the source), Costco had Energizer branded car batteries, and I think they had the exclusive license to use that name. I also remember seeing the JCI website back then, where they listed all the various brand names (and where to buy them) that JCI batteries were sold as, including Interstate, Eveready, Energizer, etc. Most were house brands, and it might have been before Sears went back to JCI.

However, Interstate doesn't have a sole supplier. One of their suppliers is Exide. I'm thinking this relationship was probably more complicated than most here would imagine. But I'm thinking it likely had a lot to do with the warranty policy and who pays when a battery goes back. I'm pretty sure that Clarios has a relationship with its customers where they're sold as is and its up to their customers to deal with warranty returns.

Energizer is still used in Canada, at least for AGM batteries.

When the batteries were Kirkland-branded, the exclusive relationship with JCI was part of the marketing campaign; I recall seeing it on the signage.

I've long been curious about the murky details but it has never been publicized like such deals sometimes are.

Whatever the details, I still think this is strictly between Costco and Clarios, with Interstate just used as branding.

Large retailers have the power to place the burden of returns and defective merchandise on vendors. If that's not what's happening in this situation, and Costco has accepted that risk, in exchange for lower costs, then it's still Costco making the adjustments.

The first time it happened, the warranty term was reduced from 42- to 36-months. I have one of those 42-month batteries from 2016, in a car that doesn't see daily use, and could stand to be replaced. Probably shouldn't have hesitated, since this new policy took effect within the last two months.
 
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