18th November 2009

“Lifetime Warranties” The new automotive gimmick?

posted in DeVoe Auto Cast, Holiday, Infiniti, News, Podcast, Premium Luxury Pre-Owned Outlet, Specials and Promotions, Stroybook, Uncategorized, Used, Volvo |

“Lifetime Warranty”, but whose life time the car or the retailer? 

Many Premium Luxury brands are touting that they have Limited Lifetime Warranty on their vehicles. Ok, so let’s just read the fine print. Yes, it’s true they have a Limited Lifetime Warranty. Oh, but do not miss the fine print. Here are some examples. 

  1. All service work must be performed at an approved facility.
  2. All service & repairs must be able to be documented if necessary.
  3. Some repairs may require you to pay up front and then submit a claim to processing and hope you have a valid enough reason for the repair to get reimbursed.
  4. Only available on some models. Must be an Asian import no older than 5 years  and the mileage varies from policy to policy or dealer.
  5. These WARRANTIES are called Cardiac coverage. (Engine & Power-train only) They do not cover the electronics, radio, A/C, Windows etc…
  6. Some require all service work to be done at their facility and also require preventative care such as: Brake Flush, Coolant Flush etc…

 Getting the idea?

The key word in this misleading guarantee is “LIMITED”. They are just that. The providers are banking their hopes on the additional Service work these Guarantees will ultimately require you to pay to keep the warranty valid. So let’s just break it out. You can buy a policy that covers most vehicles for up to 100,000 for as low as $535.00. Average true cost for service at a dealership: 

  Service                                        Cost                Times              Total Cost

  • Oil & Filter change         $39.95             22                    $878.90
  • Coolant Flush                   $69.95             4                      $278.80
  • Brake Flush                       $89.95             3                      $269.85
  • Balance & Rotate             $29.95             6                      $179.70
  • Major Service                  $299.95           3                      $899.85

Total estimated Service Cost                                              $2,506.60

I am no genius but it appears this warranty does have a cost to bear. These are services that are not covered by these policies and are a requirement to keep the warranty “Life” valid.

So next time you are looking for a New or Pre-Owned car do not be fooled by this creative gimmick to over promise & under deliver automotive products & services. Get the facts and buy smart. If it seems too good to be true than it is. Might I suggest that you buy a Certified Pre-owned vehicle from a franchised dealer or a dealer with a long history of doing the right thing.

This entry was posted on Wednesday, November 18th, 2009 at 2:15 pm and is filed under DeVoe Auto Cast, Holiday, Infiniti, News, Podcast, Premium Luxury Pre-Owned Outlet, Specials and Promotions, Stroybook, Uncategorized, Used, Volvo. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

There is currently one response to ““Lifetime Warranties” The new automotive gimmick?”

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  1. 1 On April 25th, 2010, Andy Perez said:

    As the President and Owner of the warranty company that you are referring to with respect to Ft. Myers Infiniti’s Lifetime Warranty I would encourage you to takems #2 & 6.
    the time to read the fine print yourself as you are clearly misrepresenting the facts. The only accurate statements made are with respect to Ite
    1. Service work does not have to be performed at an approved facility … simply a licensed repair facility.
    3. The consumer doesn’t have to pay upfront… claims are handled in the same manner as Infiniti and or your current provider JM&A.
    5. The coverage is identical to Infiniti’s limited power-train coverage …do you refer to that as “Cardiac coverage.
    6. Service work “Does Not” have to be done at their facility.Service / maintenance requirements are identical to the manufacturers requirements. Are the excessive?

    As far as the definition of Lifetime it is for as long as the purchaser keeps the vehicle. That is only logical conclusion it is not life insurance …it is a warranty… just as the manufacturers except it is backed by a much more financially sound insurer than the vast majority of the manufacturers.

    Please do not misrepresent the facts as that is the dishonest statement. There are no Gimmicks, the consumer simply must maintain their vehicle “as per the factory recommendation.” Your comments humorous since JM&A actually copied and duplicated our product… but not as effectively. I am very familiar as I was previously the Senior VP of North American sales.

    Andy Perez
    President WASCOR.

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