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post #35 of (permalink) Old 28th August 2008
S.M.A.R.T.(y) Pants
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When standard car warranties went from one year to three years, it was a calculated move to keep cars being serviced by the dealer network. However, the block exemption rules (which all major manufacturers opposed) spoiled the party by stating the warranty was still valid as long as the schedule was adhered to, and parts of a similar (or better) quality was used.

I don't know if the 5 year warranty would cost that much to implement (Fiat now offer it, for example), as the dealers get paid warranty rates (much less than you or I pay), and the parts themselves are at cost - the dealer doesn't really get much out of it, except a bit of contact with the punter to persuade them to trade up. Plus, its a good advertising tool to differentiate your product from the masses. A bit like the MINI TLC package, whereby you can charge a premium price for an under-equipped car, yet still leave the customers feeling like they are getting a good deal.

It can be dangerous to read too much into customer surveys, as various demographics gravitate towards particular cars, and their expectations/needs can vary enormously, hence why Honda, Volvo, Nissan, Toyota & Rover attract the 'mature' set (who will tend to appreciate light controls & good visbility - over handling & performance) - what 'they' would like, isn't necessarily what 'we' would.

A sidenote: Porsche 'only' offer a 2 year warranty, yet Hyundai offer 5 years protection - am I to presume that the Pacific Rim car (because of the numbers) is the shrewder purchase?


This job should never be complete - the day I think I've done it all, is the day I resign.

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