what is the catch with the lifetime warranty on new cars

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when i was shopping for a vehicle i bumped into a few of the dealers giving lifetime warranty with new vehicles. not just one, but quite a few speaking to them its an aftermarket warranty of course.

So i am curious what the catch is. how can they give a lifetime warranty on a vehicle and make money
 
There is a dealership near me that offers lifetime engine warranties on all cars they sell, with the catch that for the life of the car, you have to bring it to them for oil changes and all standard maintenance. Sure, you get the lifetime warranty on the engine, but you'll pay for it via the cost of the changes and maintenance.
 
Usually the catch is that you have to have all scheduled maintenance done when it's due, usually by the dealer offering the warranty. Of course there are some exceptions. You need to read the miniscule print.
 
The dealer I bought our 2019 at has this - - -"Free" engine and trans warranty for as long as you own the car.

- As long as you service everything at the dealership - - - - - EVERYTHING !
 
Ask to see the terms & limitations. I'm sure they have many outs such as defining what is considered "abuse" among other things.
 
Originally Posted by nicholas
The dealer I bought our 2019 at has this - - -"Free" engine and trans warranty for as long as you own the car.

- As long as you service everything at the dealership - - - - - EVERYTHING !

At extremely inflated prices, and even then they have terms & limitations.
 
Originally Posted by PimTac
Please. Nothing is free. There are many old discussions here on these stealership upsells.


not upsells . included in every new car. bellevue honda , everett hyundai to name a couple local places
 
Originally Posted by WhyMe
Originally Posted by PimTac
Please. Nothing is free. There are many old discussions here on these stealership upsells.


not upsells . included in every new car. bellevue honda , everett hyundai to name a couple local places




Are the dealerships themselves offering this warranty? I would read the details of the warranty

The floating bridges were said to be unsinkable too, until one of them sank.
 
Originally Posted by WhyMe
not upsells . included in every new car. bellevue honda , everett hyundai to name a couple local places


With a list of things that will invalidate said "lifetime" warranty that is as long as my pants belt, for sure. They'll recover plenty of money to pay for any repairs with what they will wring out of your pocketbook for maintenance between day 1 and the first major failure. Steer clear IMO.
 
Originally Posted by nicholas
The dealer I bought our 2019 at has this - - -"Free" engine and trans warranty for as long as you own the car.

- As long as you service everything at the dealership - - - - - EVERYTHING !


Same in my area.

"FREE ENGINES FOR LIFE" (if you do all your service through our dealership)
 
For some people this may be ok. Today I brought home a 14 Camry that I bought from the widow of a friend who died recently. I am giving the car to my sister in law. The owner felt like all services should be done at the dealer. He had every receipt from Pat Lobb Toyota in Plano, Tx. He even bought new tires there. I noticed that they charged him $50 for oil changes with synthetic TGMO. All the charges seemed reasonable for someone who doesn't do any maintenance themselves. As soon as I got it home I changed the oil with Mobil 1 that I got with a rebate. The car has 50k miles and looks and drives like new.
 
Typically a powertrain-only warranty. I saw a message for this at a local Honda dealer, and their terms are online.

Quote
https://www.hondaoakland.com/lifetime-powertrain-warranty.htm
Question: Do I have to bring my car back to your dealership when I have a claim?
Answer: Absolutely not. Our Lifetime Limited Power Train Warranty can be used at any licensed repair shop in all 50 U.S. states and Canada. So if you move, if you're on vacation, or traveling, the warranty goes with you!

Question: What are my responsibilities for maintaining my vehicle?
Answer: Easy. Just follow the manufacturer's standard maintenance guide in the owner's manual. This will help protect your factory warranty, as well as your Lifetime Warranty when you have a claim.

Question: Do I have to bring my vehicle back to your dealership for the required maintenance?
Answer: Absolutely not. If you change your own oil, simply keep the receipts for the oil and filter. However, our dealership will electronically maintain all of your maintenance records for submission when you have a Lifetime Warranty Claim.

Question: Who stands behind the Lifetime Warranty?
Answer: The warranty is backed by PSC AutoShield


I looked up what the last part means. Apparently this dealer is part of the PSC Automotive Group, which is 4 Honda dealerships - 2 in California, one in North Carolina, and one in South Carolina. I guess it's provided by the parent dealership group.

http://www.pscauto.com/locations/service.htm
 
Originally Posted by WhyMe
not upsells . included in every new car. bellevue honda , everett hyundai to name a couple local places


They do that down here as well. Its just a sales gimmick. Gets you the 'feely goodys". But as others have posted, you have to do every dealer and manufacture recommended service at the dealer, and on time. And when it blows up anyway, there is usually a loophole or two they can use to get out of it. Its worth less than the paper it is written on. And if your dealer actually tries to tag it to the price, simply run away.
 
They are counting on you trading out of that car long before any lifetime warranty coverage kicks in.....
plus you are always coming by the dealership updating your maintenance records, looking at their newer offerings.
Fun times indeed.
 
Major dealerships will probably be around for a long time but smaller places might endd up out of business making a "lifetime " warranty not worth it
 
Read the fine print. Of all our family/friends that were going to buy into this ended up backing out of it because of reasons mentioned above. Something better you can do. Put $100/month away from the day you own the car and if something major happens you will have the cash in the bank to fix it. If it doesn't well then put that towards lowering the payment on your next vehicle.
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