JulesMaximus
No Lifer
Originally posted by: PingSpike
Originally posted by: JulesMaximus
What do you think a 10 year warranty is if it isn't a tool to increase sales? Do you think that because a car manufacturer provides a 10 year warranty that somehow their cars are better or less likely to fail than a car with a 3 year warranty? If you do then you are sadly mistaken.
Oh course it will increase sales. But if their cars are piles of crap they aren't going to slap a 10 year warrenty on them, they'll be paying out the ass for those cars forever because they're under warrenty forever. If they did that, they'd go under in a heartbeat from having to eat all those warrenty repairs. In order to make the warrenty thing work, you'd have to make a solid car that didn't need repairs much.
You know, thats what I would do if I were an exec. Unless I was an idiot and wanted to see the company go under. I'm not sure you've even really thought about this. A big warrenty on a crappy car = major profit loss in the long run.
Its no garentee they're good cars, but if it stands to bite them in the ass if they aren't...
I've driven their cars. They are crappy. Hyundai is betting that the profits from increased sales will offset the warranty claims. You are fooling yourself if you think that the longer warranty is offered because the cars are so good that they will not break.