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Discussion Starter #1
I HAVE A FEW QUESTIONS ...????

WHY DO LUXURY CAR BUILDERS DO NOT OFFER LUXURY WARRANTY'S WITH THIER VERY EXPENSIVE PRODUCT ... ?

I MEAN I CAN BUY A HYUNDIA AND GET A 10 YEAR 100K WARRANTY ...
I CAN BUY A CHRYSLER/JEEP AND GET A 7 YEAR 100K WARRANTY ...
I CAN BUY A KIA AND GET A 10 YEAR 100K WARRANTY ...
I CAN BUY A ISUZU AND GET A 10 YEAR 120K WARRANTY ...

JUST TO NAME A FEW ...

BUT IF I BUY A:

ACURA = 5 YEAR 50K WARRANTY
LEXUS = 6 YEAR 70K WARRANTY
BENZ= 4 YEAR 50K WARRANTY

THE FUNNY THING IS THEY ALL OFFER EXTENDED WARRANTY'S 4 MORE MONEY AS IF I DIDNT SPEND ENOUGH MONEY ALREADY...:3:

AND I KNOW A LOT OF PEOPLE WILL SAY "KIA" HAS TO "OFFER THAT KIND OF WARANTY TO PUSH THE CAR OFF THE LOT" ... BULLSH*T ...! YOU CAN BELIEVE THAT IF YOU WANT ... THE LOW PRICE IS WHAT SELLS THOSE CARS ...

BUT WHAT IM TRYING TO SAYS IS THAT THESE LUXURY CAR BUILDERS @ ACT LIKE THEY SH&T DONT STINK ... IF IM PAYING OVER A 100K FOR A BENZ S600 AND YOU OFFER ME A 4 YEAR 50K WARRANTY, IM GOING TO BE FEELING SOME TYPE WAY ... FOR THE PRICE OF THE CAR I SHOULD RECIEVE A WARRANTY FOR THE LIFE OF THE CAR ...

BASICALLY I JUST MADE THIS POST TO RUFFLE SOME FEATHERS AGAIN AND TO ALSO SEE IF SOMEONE CAN SHED SOME LIGHT ON WHY LUXURY CARS COME WITH SMALLER WARRANTY PACKAGES BUT COST TWICE AS MUCH AS THE MORE ECONOMY VEHICLES WITH BETTER WARRANTY'S ... AND PLEASE DO NOT PULL THE "ITS A SELLING FEATURE" CARD ... BECUASE IM SURE IT IS BUT ITS NOT A MAJOR 1
 

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well, i guess if you compare lexus vs. toyota, or acura vs. honda, you do get a little more warranted period (like a year) if you buy a 'luxury' vehicle... not enough to justify the inflated price though... :mad:

for benz, i have no clue... they do offer, however, free maintanance for 4 years...

just my .02...
 

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Because they can!

Do you think that the Kia/Hyundia/Jeep/Isuzu would offer such long warranties if they had a reputation for "long term dependability"?

Of course not!

Those warranties are there to CYA of the the poor quality vehicles that have left a bad smell in those brands' houses!

The "acturial costs" that those companies have to set aside hurt their bottom line, but not as much as if no one went to their showrooms for fear getting a clunker.

Those things don't happen at the "luxury import" brands -- folks EXPECT that those vehicles will be at least somewhat better than average.
 

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Hi Mymdxiscoming:

___Not that I can add anything to the fray but if my Toyota and Honda vehicles make it to 40 K without incident, I think they will make it to 175 K without much investment as well. I can only hope anyway.

___Yes, the luxury manufacturers make a ton of money on these marques but if it were your company, would you maximize profit to sell what you have on your dealerships lots or at least to keep them moving or would you offer more warranty than the competition with less overall profit knowing the vehicles will move off the lot anyway? I most certainly wish the X had a 7/70K warranty but it doesn’t and I am purchasing one knowing this. I am also expecting a higher than average reliability from the X over lets say the new Aviator right from the get go as well.

___Finally, is this any reason to YELL ;)

___Good Luck

___Wayne R. Gerdes
___Hunt Club Farms Landscaping Ltd.
___[email protected]
 

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because they have to!

mymdxiscoming said:
I HAVE A FEW QUESTIONS ...????

WHY DO LUXURY CAR BUILDERS DO NOT OFFER LUXURY WARRANTY'S WITH THEIR VERY EXPENSIVE PRODUCT ... ?

I MEAN I CAN BUY A HYUNDAI AND GET A 10 YEAR 100K WARRANTY ...


AND I KNOW A LOT OF PEOPLE WILL SAY "KIA" HAS TO "OFFER THAT KIND OF WARRANTY TO PUSH THE CAR OFF THE LOT" ... BULLSH*T ...! YOU CAN BELIEVE THAT IF YOU WANT ... THE LOW PRICE IS WHAT SELLS THOSE CARS ...


First, I think you need both low price and a long warranty to sell a KIA or Hyundai. When these two low price car makers raised their warranties their sales shot up. Here is the article where I read it.

http://www.edmunds.com/advice/specialreports/articles/69796/article.html

Second, Honda/Acura products have been known for reliability so adding at long warranty will not effect sales very much, unlike what it did for the (perceived) low reliability manufacturers. In addition, it will add cost (for insuring more vehicles for a longer time). So from Honda's perspective, marginal benefit and added cost=no longer warranties.

It will be interesting to see how the warranty war plays out. My guess is Acura will slowly raise the length/Mileage to maintain pace with the industry average and Honda will follow a short distance behind.
 

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There are small volume manufacturers willing to sacrifice supporting a long warranty for a sale. It's no more complicated than that.
How many Kia or Hyundai owners would keep their vehicles much more than 5 years, when you really think about it.
Unless they just want a commuter car when it has lot of miles on it, and loses whatever 'charm' it had to start with. (If parts are still available......)

Do you want to shop for a warranty you like or a vehicle you like?

Daewoo is on it's way out, who knows the longevity of Kia, etc.

On an upscale vehicle like an Acura, Lexus, etc. it's more money, but you can always extend the warranty to protect things you can't get in those other cars, like naviagation systems, and more complex and better performing drive train components.

Look at the gov and ins. safety results of all these vehicles too. Long warranties pale in comparison.
 

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Warrenty costs

A warrenty has a cost no matter how reliable the product is.
This cost must be accounted for in the selling price of the product just as any other cost. It does not matter if it is a hard cost (added parts) or a soft cost (Marketing), all he costs affect the price.
 

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The 10yr/100k warranty is not comprehensive if you read the fine print. A close friend of mine is the finance manager at a Hyundai stealership and they make alot of money offering a comprehensive bumper-to-bumper upgrade. They essentially tack on $20/mo for this coverage that 90% of the buyers end up purchasing.

So, if you figure out the numbers, a stealership makes quite a profit when they do this on almost every car they sell. And the salesperson get's a good commission on top of that.

There's so much involved in selling cars these days, and the profits are huge. Even if the car is sold under MSRP.
 

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A long warranty on a name like Kia isn't done because they have to. It's done because they recognize that they don't currently have the reputation for quality. It's the unknown. They know that people are unfamiliar with the reliability of their products and offer the longer warranty to put consumers minds at ease. Volkswagon did this not too long ago. They knew that they were viewed as having less than stellar reliability ratings so they began offering a 10 year warranty with their newer, more reliable designs. They then built the name back up and have backed off their warranty to 4 years.
 

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Normally when I hear 10 yr 100K miles warranty or 7 yrs 100K miles warranty, I only heard that is for the power train. Are those BUMPER to BUMPER warranty?

I had a friend bought a KIA (recent year used car). Within a year and just couple thousand miles, the battery dead. KIA does not replaced the battery for free. She had spend money out of her own pocket to replace it.

I believe with Honda/Acura, we don't have this problem. Otherwise the dealer will replace it for FREE.
 

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JTM said:
Normally when I hear 10 yr 100K miles warranty or 7 yrs 100K miles warranty, I only heard that is for the power train. Are those BUMPER to BUMPER warranty?

I had a friend bought a KIA (recent year used car). Within a year and just couple thousand miles, the battery dead. KIA does not replaced the battery for free. She had spend money out of her own pocket to replace it.

I believe with Honda/Acura, we don't have this problem. Otherwise the dealer will replace it for FREE.
Batteries are considered a wear item and usually are not covered if it's just "dead". If it's a month or two out, a dealer probably will replace it, but after a year they would probably just assume that you ran it down yourself. If it was a physical defect, it should be covered.

Chris
 

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Discussion Starter #12
<b>JTM</b>

i believe hyundia offers a bumper to bumper but someone mentioned earlier in the post the it is a extra cost ...

<b>A long warranty on a name like Kia isn't done because they have to. It's done because they recognize that they don't currently have the reputation for quality.</b>

the above summarizes the most popular response ...

but just to let you guys no ... i used to be a lot attendant for Porter Chevrolet/Hyundia ... and guess what cars come in more frequent for warranty work or just issues ... no not the the hyundia, the chevrolet ... now a days the hyundia is built a lot better then the early 90's version ...

but i guess what i am trying to say ... why say it because "It's done because they recognize that they don't currently have the reputation for quality" ... <b> THEN WHY DOES ACURA, LEXUS ECT ... OFFER EXTENDED WARRANTY'S, AND @ A ADDITIONAL COST ... I THINK I SMELL SOME INSECURITY FROM THE DEALERS ... BUT THEY JUST DONT WANT TO ADMIT IT ...

and also please stop this stuff about luxury cars will last longer than less expensive more economical cars because thats b.s ... more expensive car doesnt = longevity .. it just = more toys and technology and uneeded stuff ... ie ... anyone who lives in a suburban area and drives a Hummer ... please dont take it personal to the suburban hummer owners ...
 

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mymdxiscoming said:
<b>JTM</b>


and also please stop this stuff about luxury cars will last longer than less expensive more economical cars because thats b.s ... more expensive car doesnt = longevity .
Not more expensive, better built! I don't care if it's a Toyota Corolla or an Acura MDX, I believe both would last longer given the same maintenance.
10 years from now you will see fewer numbers (proportionally) of Acura, Hondas, Lexus, Toyotas sitting in a junk yards compared to Kias, Hyundais, etc. I am talking about vehicles that have not been wrecked.
Feel free to disagree, I know which ones I'd rather still be driving over the long haul, or have anyone in my family drive.
 

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mymdxiscoming,

1st: Acura's warranty is NOT 5/50,000, it is 4/50,000.

2nd: Others have pretty much said it. Making/selling autos is a business. The purpose of a business is to make money. In order to make money you have to sell what you make and make money on what you sell (sorry, know this is basic). Now that we're there, the next goal is to MAKE AS MUCH MONEY AS YOU CAN!! Limits are generated by competition.

Mfgs. offer warranties because they have to in order to sell the vehicles. The length/coverage of the warranty IS IN FACT DRIVEN BY THE NEED TO BE COMPETITIVE. Don't for a NY minute think that warranties are not hot internal topics and carefully negotiated internally. Sales/Marketing want long warranties, accounting want short/no warranties:

** Sales/Marketing: The better the warranty, the more attractive the car, the more we will sell.

** Accounting: Longer/better warranties cost money. Some things break (no matter how good the product). If it breaks under warranty, then mfg. pays. Out of warranty, the consumer pays.

Look at the recent Toyota engine problems and the Honda tranny problems. Both knew they had problems. Both told customers to "pound sand". Each problem was costing thousands of dollars to fix. A lot of consumers got stuck with the bills because their warranty had expired. A lot more consumers were gonna get stuck. BOTH TOYOTA AND HONDA resisted doing anything UNTIL it became widely known and started impacting "reputation" (translate this to lost customers forever and loss of faith by others). Then and only then, did they extend the warranty on JUST THE PROBLEM COMPONENT (and it had to cost each company millions and millions of dollars).

Sooooooo .... it's all part of the game. As a seller you want to give the least you can and make the most $$ you can. As a buyer, you want to get the most you can and spend the least $$ you can. As a manufacturer, if demand is good, you don't need to give away stuff like warranties. If demand is not there, you go to rebates, warranties, whatever to move the product.

Heck, Honda GETS AWAY WITH A 3/36,000 warranty!!!
 

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Discussion Starter #15
srpbep said:
mymdxiscoming,

1st: Acura's warranty is NOT 5/50,000, it is 4/50,000.

^^You said that like it was making Acura's warranty any better ... :confused: ^^^^

no matter what you guys say about neons,kia's, and hyundia's ... they will always be as many of them on the rode as the more expensive cars and thats with or with out the 10 year 100k warranty ... yes they get more sales becuase of it ... but the fact still remains that the average person cannot afford a Acura, or a Lexus ... and if they do buy one ... they are more than likelly living check by check ... and they are first time buyer cars ... kids just getting thier driver license, high school graduates, college students ect ...

someone else mentioned that the kia's ect ... are the cars that you will own for a very short time and then higher end cars (MDX) which are the cars people will keep for a longer time ... if that is the actual perception ... then why market your car with such a extended warranty that will exceeds the life of the owner ...?
vice versa ... why would acura not offer a standard warranty that would assist the life of the owner ...? seeing that its cars are tag with <B>LUXURY</B> ...

they just assist you up to the point where the average financer is finish paying off the car ... then @ that point its time to spend the big money ...ie timing belt/water pump 60k mile check up service... :D
 

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mymdxiscoming said:



no matter what you guys say about neons,kia's, and hyundia's ... they will always be as many of them on the rode as the more expensive cars
What does expensive have to do with it?
I thought Civics and Corollas are considered inexpensive.
I think a lot more of them will be on the road than all your KIAs, Hyundais, and neons put together.
Look how many old ones are still on the road!
Of course, they do sell more, but there must be a reason? I guess more people like them better even with their shorter warranties.
 

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Discussion Starter #17
DaleB said:


What does expensive have to do with it?
expense has everything to do with it ... this post is High End Luxury VS low end economical warranty's ...

DaleB said:


I thought Civics and Corollas are considered inexpensive.
I think a lot more of them will be on the road than all your KIAs, Hyundais, and neons put together.
there are way more neons on the road VS civics and corollas ... but is there a place on the internet that documents that type of information ... becuase we tend to go by our surrounds ... and i am speaking on behalf of Delaware VS you are speaking on behalf of Sunny California ...

DaleB said:


Look how many old ones are still on the road!
i agree ... personally i own a 87 honda accord with 160k ...

DaleB said:


Of course, they do sell more, but there must be a reason? I guess more people like them better even with their shorter warranties.
like i said be for is there a website or sometype of source where this can be verified ...
 

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Not everybody knows that there is a trick with 10/100,000 warranty. I know for sure that it's not transferable for Isuzu. In other words if you buy 1-year old car, you don't get the long warranty. That just maybe a reason why resale value is so low.
 

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Discussion Starter #19
it transferable but you wont get the full 10 years ...
 

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mymdxiscoming said:
it transferable but you wont get the full 10 years ...
GM took over Daewoo service when they went under, and covered warranty service.
Problem was there were very few replacement parts left on the shelves, because Daewoo could not afford to maintain inventory.
Lots of people got stuck.
When the warranty outlives the corporation, there are bound to be problems.
I would like to see longer warranties out of Honda/Acura and Toyota for sure. But it will not keep me from buying their prodcuts from cheaper to luxury models.
Because they are well designed, drive nicely. and you can get service most anywhere.
As far a Neons exceeding the number of Civics and Corollas, I would love to see those numbers.
And actually warranties tend to be the same length for any model of vehicle from a given manufacturer. So I don't think cost of the vehicle is a factor.
A Neon has a 7/100K on it's drive train, so does Chrysler 300.
 
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