Why can't more auto makers provide longer better warranties?

[coolred]

Looking around there are a few that offer 5yr/60,000 mile bumper to bumper, as well as Hyundai and maybe a few select others that have the 10yr/100,000 mile powertrain. And 5 years worth of road side assitance. I was just thinking, if a company like Hyundai and Kia(yes I know they are basically 1 in the same)can offer such good warranties, why can't the bigger guys, or do they just feel they don't need to in order to increase sales. I mean if Hyundai has enough confidence in thier build quality to do it, why don't Honda, Toyota and Nissan also feel this way, not to mention the big 3 domestic guys. what are your opinions?

 

[Dacalo]

its all about marketing

Hyundai and Kia are trying an image makeover to get themselves out of bad car image

while Honda, Toyota and Nissan dont need to in order to sell their cars.

Why increase on expenditure when you dont need to?

 

[Colt45]

its because kia et al have "ghetto" stigma and need the help for sales. others dont

 

[Zenmervolt]

Originally posted by: coolred
Looking around there are a few that offer 5yr/60,000 mile bumper to bumper, as well as Hyundai and maybe a few select others that have the 10yr/100,000 mile powertrain. And 5 years worth of road side assitance. I was just thinking, if a company like Hyundai and Kia(yes I know they are basically 1 in the same)can offer such good warranties, why can't the bigger guys, or do they just feel they don't need to in order to increase sales. I mean if Hyundai has enough confidence in thier build quality to do it, why don't Honda, Toyota and Nissan also feel this way, not to mention the big 3 domestic guys. what are your opinions?

Hyundai and Kia do not, "have confidence in their build quality". The warranties are limited to powertrain and if you read closely, limited to the original owner in many cases. Long warranties are largely gimicks to get people into the showroom when they would otherwise not consider the brand. The reason that "the bigger guys" don't increase their warranties is that they don't need to, and they probably don't want the bad word of mouth when people find out that long warranties are limited only to powertrain or to the first owner.

ZV

EDIT: Essentially, that two-year-old Kia in the local car lot with 25,000 miles on it has no factory warranty left.

 

[vi edit]

It's a game of statistics. Hyundai pretty much knows that very few of their buyers are going to keep the car for more than five years, and when the person trades in/sells the car the warranty is pretty much void then. So, they no longer have to pay out. It's there for show, and to sell cars. And it works.

 

[coolred]

I think it is a good idea though. I mean for the college student on a budget it will get them through college and then an extra year to get a better job and then a better car. And if you like to keep a car till it dies, then keep it for 10 years and the powertrains covered. Plus 5 years of roadside assitance. I know Kia and Hyundai are not considered in high regards, which is why I am wondering how on earth they can manage to do this. I mean when i buy a car I plan to keep it for a while other wise I would lease for lower payments. I undertsand they also depreciate like a mofo, but again if you keep it, thats no problem, and if you don't its still not a huge loss considering what they cost originally.

 

[vi edit]

Originally posted by: coolred
I think it is a good idea though. I mean for the college student on a budget it will get them through college and then an extra year to get a better job and then a better car. And if you like to keep a car till it dies, then keep it for 10 years and the powertrains covered. Plus 5 years of roadside assitance. I know Kia and Hyundai are not considered in high regards, which is why I am wondering how on earth they can manage to do this. I mean when i buy a car I plan to keep it for a while other wise I would lease for lower payments. I undertsand they also depreciate like a mofo, but again if you keep it, thats no problem, and if you don't its still not a huge loss considering what they cost originally.

What would you rather have, higher warranties, or lower selling price? You can't have both. Hyundai has done the math, trust me. FOR THEM it's economically feasable to offer the warranty. For others it is not, the cars sell themselves without need of a warranty.

If you want a longer warranty, the dealers will be happy to give you a longer one that doubles your coverage for $700-$1500.

 

[Zenmervolt]

Originally posted by: coolred
I think it is a good idea though. I mean for the college student on a budget it will get them through college and then an extra year to get a better job and then a better car. And if you like to keep a car till it dies, then keep it for 10 years and the powertrains covered. Plus 5 years of roadside assitance. I know Kia and Hyundai are not considered in high regards, which is why I am wondering how on earth they can manage to do this. I mean when i buy a car I plan to keep it for a while other wise I would lease for lower payments. I undertsand they also depreciate like a mofo, but again if you keep it, thats no problem, and if you don't its still not a huge loss considering what they cost originally.

They manage it because people who keep their cars for more than 4 years are decidedly in the minority. Since probably 80-90% of the people who buy Kias and Hyundais get rid of the car within 4 years, they only have to honor maybe 15% of the warranties until full term and the cost is offset by the increased revenue from selling more cars.

ZV

 

[CraigRT]

i like the 7 year, 115,000 km from Dodge..wish I could have gotten that on my 2001. (5/100)

 

[vi edit]

Originally posted by: Yield
i like the 7 year, 115,000 km from Dodge..wish I could have gotten that on my 2001. (5/100)

I'm not sold on that. According to the fine print, there's a deductable on warranty claims. Haven't seen what that amounts to though. Could be $20, could be $200.

Anyone bought a new dodge and looked over the details?

 

[rickn]

Hyundai poses a potentially serious threat to other US automakers. their warranty and prices are hard to beat. Compare a Sonata to a Galant, Accord or Camry. Not only has the Sonata got better styling, more standard features and more interior volume, it's generally $8,000-10,000 cheaper. Hyundai got their reputation because of the Excel, which was a hunk of sh!t. But, they've come a long way since those days, and in a relatively short period of time.

 

[rickn]

Originally posted by: vi_edit

Originally posted by: Yield
i like the 7 year, 115,000 km from Dodge..wish I could have gotten that on my 2001. (5/100)

I'm not sold on that. According to the fine print, there's a deductable on warranty claims. Haven't seen what that amounts to though. Could be $20, could be $200.

Anyone bought a new dodge and looked over the details?

$100 deductible per claim

 

[geno]

Originally posted by: rickn
Hyundai poses a potentially serious threat to other US automakers.

LOL, how so?

their warranty and prices are hard to beat. Compare a Sonata to a.... Accord or Camry.

You can't. The Sonata is a POS compared to the other two.

Not only has the Sonata got better styling, more standard features and more interior volume, it's generally $8,000-10,000 cheaper.

And that's for a reason. I happen to think the Sonata looks cheezy compared to the sleek Accord.

Hyundai got their reputation because of the Excel, which was a hunk of sh!t. But, they've come a long way since those days, and in a relatively short period of time.

They have come a long way since the 80's, but their cars still suck in comparison to other automakers in their class.

 

[vi edit]

$100 deductible per claim

Bah! Just what I thought. All marketing. $800 up front can get you a 6yr/75,000 BUMPER TO BUMPER, not just drive train, warranty on most vehicles out there. The dodge warranty is a joke, and is there simply because dodge can't build a decent tranny to save their asses and people were scared to buy their cars.

Wonder how many people catch the deductable part before they buy?

 

[Zenmervolt]

Originally posted by: rickn
Hyundai poses a potentially serious threat to other US automakers. their warranty and prices are hard to beat. Compare a Sonata to a Galant, Accord or Camry. Not only has the Sonata got better styling, more standard features and more interior volume, it's generally $8,000-10,000 cheaper. Hyundai got their reputation because of the Excel, which was a hunk of sh!t. But, they've come a long way since those days, and in a relatively short period of time.

Well, the styling is purely subjective, I haven't seen a car that can compete with the new Accord Coupe (the Accord Sedan has terrible tail-lights though). "Interior volume" is deceptive, leg, hip, knee, shoulder and head room are more important than total volume, a car can have a huge dash area that creates no extra passenger space but adds a large amount of "interior volume". Yes the Hyundai might have more standard features for less money, but the entire car is much less refined than an Accord or a Camry. Plus, I've not seen anyone come close to Honda's ergonomics. Hyundai's statistics are good, but their execution is not nearly on par with the flawlessness of the Japanese.

ZV

 

[vi edit]

Originally posted by: geno

Originally posted by: rickn
Hyundai poses a potentially serious threat to other US automakers.

LOL, how so?

their warranty and prices are hard to beat. Compare a Sonata to a.... Accord or Camry.

You can't. The Sonata is a POS compared to the other two.

Not only has the Sonata got better styling, more standard features and more interior volume, it's generally $8,000-10,000 cheaper.

And that's for a reason. I happen to think the Sonata looks cheezy compared to the sleek Accord.

Hyundai got their reputation because of the Excel, which was a hunk of sh!t. But, they've come a long way since those days, and in a relatively short period of time.

They have come a long way since the 80's, but their cars still suck in comparison to other automakers in their class.

Now now. MANY people that I know prefer the looks of the Sonata to a Camry and many of them even to an Accord. The elantra and Elantra GT are also great little bang for the buck cars as well. Very well equiped, and several thousand less than any car in their class with comparable options. Just because you don't like the looks of them doesn't mean that they aren't great value.

 

[Zebo]

Ford has a 100000 mile powertrain warranty on thie hd diesel trucks...


$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

If I had the right equipment I could make a car that last 500,000 miles and burns on lithium baterries powered by power plants, and goes 2000 miles before charging. There is no money in it though.

 

[boyRacer]

Originally posted by: Zenmervolt

Originally posted by: rickn
Hyundai poses a potentially serious threat to other US automakers. their warranty and prices are hard to beat. Compare a Sonata to a Galant, Accord or Camry. Not only has the Sonata got better styling, more standard features and more interior volume, it's generally $8,000-10,000 cheaper. Hyundai got their reputation because of the Excel, which was a hunk of sh!t. But, they've come a long way since those days, and in a relatively short period of time.

Well, the styling is purely subjective, I haven't seen a car that can compete with the new Accord Coupe (the Accord Sedan has terrible tail-lights though). "Interior volume" is deceptive, leg, hip, knee, shoulder and head room are more important than total volume, a car can have a huge dash area that creates no extra passenger space but adds a large amount of "interior volume". Yes the Hyundai might have more standard features for less money, but the entire car is much less refined than an Accord or a Camry. Plus, I've not seen anyone come close to Honda's ergonomics. Hyundai's statistics are good, but their execution is not nearly on par with the flawlessness of the Japanese.

ZV

Glad to see i'm not the only one who likest he coupe but hates the sedan...

I know people in my school who want to buy Tiburons and rice them up just to be different from the Honda crowd... hahaha...

 

[vi edit]

Yes the Hyundai might have more standard features for less money, but the entire car is much less refined than an Accord or a Camry.

Have you sat in a modern Hyundai? They are actually very well put together cars. The panel gaps are on par with honda & toyota, and interior components are almost up there. Very solid feeling and well put together. The Elantra GT is a great little car for $13,500, and has build quality and features rivalring a $17,000 Civic. They are clearly above any domestic builder, and are nipping at the heals of the Japanese powerhouses.

I'm still partial to VW interiors being that I'm a Passat owner and I think it's a benchmark for a car under $25,000, but I'm still very impressed with Hyundai.

 

[Zenmervolt]

Originally posted by: vi_edit

Yes the Hyundai might have more standard features for less money, but the entire car is much less refined than an Accord or a Camry.

Have you sat in a modern Hyundai? They are actually very well put together cars. The panel gaps are on par with honda & toyota, and interior components are almost up there. Very solid feeling and well put together. The Elantra GT is a great little car for $13,500, and has build quality and features rivalring a $17,000 Civic. They are clearly above any domestic builder, and are nipping at the heals of the Japanese powerhouses.

I'm still partial to VW interiors being that I'm a Passat owner and I think it's a benchmark for a car under $25,000, but I'm still very impressed with Hyundai.

Yeah, I've been in new Hyundais. I like them, but the execution's not on par with Honda. Modern Hondas are more comfortable (for me at least), the ergonomics are better (again, for me), the engines are smoother, and the transmission shifts better and has better computer controls. Hyundai's build quality is there, but pure build quality doesn't automatically mean refinement.

ZV

 

[vi edit]

Yeah, I've been in new Hyundais. I like them, but the execution's not on par with Honda. Modern Hondas are more comfortable (for me at least), the ergonomics are better (again, for me), the engines are smoother, and the transmission shifts better and has better computer controls. Hyundai's build quality is there, but pure build quality doesn't automatically mean refinement.

True. The only fault I found in Hyundai was their automatic tranny. It was pretty dumb when it came to shifting. I can't say it was a fair test drive though because I was used to driving a 5speed VW VR6 engine. I went from that to an automatic tranny pushing 140HP out of a little 2L engine. A bit of difference.

Overall though, I can live for a bit rougher transmission when I'm saving $4,000 or more off the sticker price.