Monday, May 01, 2017

FREE LIFETIME ENGINE/POWER-TRAIN WARRANTIES ARE PHONEY-BALONEY, WORTHLESS COME-ONS

Car dealers will do almost anything to “get you in-the-door” to sell you a car, and one of their favorite tricks is a “free lifetime warranty” with every car they sell. I haven’t written about this before because I didn’t think anybody would believe a car dealer would give then anything of value free, but I was wrong!

I was recently shown a survey of South Florida car owners. The survey asked which features and benefits associated with the purchase of a car they considered to be the most valuable. To my amazement and disbelief, the number one and two items were free, lifetime engine and power-train warranties!

For clarification, the engine is part of the powertrain. the main components that generate power and deliver it to the road surface. This includes the engine, transmission, drive shaft, differentials, and the final drive (drive wheels). Essentially, these are all thelubricated parts of your vehicle. These parts are very important, and they are also very reliable and not likely to fail if properly maintained.

All engine/powertrain warranties, free or otherwise, have requirements that they be maintained, at least per the manufacturers’ recommendations. Many free warranties also have conditions that they be maintained even more frequently than the manufacturer requires. Most non-manufacturer engine and powertrain warranties (and all free nonmanufacturer) EXCLUDE SEALS AND GASKETS* which are the only parts that might wear out during any reasonable length of time. Some of these phony warranties have requirements that all maintenance and repairs be made at the dealership you bought the car from; some have requirements that you use a specific brand of oil. All of them require that you have detailed, written evidence of every single required maintenance that the fine print in the warranty requires. There are also other exclusions (“CYA” for the warranty seller) regarding how you use your car…do you tow a trailer, drive commercially, etc. A good tip for you regarding warranties, free or not, is to read the fine print which tells you what the warranty DOES NOT COVER. This is usually on the last page in fine print but what it does cover is on the front page in large, bold print.

Because there is virtually no warranty cost to auto manufacturers from repairing engine and powertrains that have been properly maintained, they offer much longer, higher mileage coverage on the engine/powertrain than the rest of the car. Hyundai and Mitsubishi warrantee their engine/powertrains for 10 years or 100,000 miles. Acura warrantees theirs for 7 years or 70,000 and most other manufacturers for 4 or 5 years and 50,000 miles. Remember that the manufacturers do cover gaskets and seals on their warranties, but the car dealers offering the free warranties do not. The only things that can fail on a well-maintained engine or powertrain are the seals and gaskets. If the manufacturer did not cover these, they would offer a lifetime warranty too.

When you see one of these car dealer advertisements offering you a FREE engine or powertrain warranty, ask him how much of adiscount from the advertised price he will give you if you decline the warranty; and/or ask him to show you proof of any warranty repairs his dealership has ever made on an engine or powertrain covered by their free warranty. I think we both know the answer to these questions…you won’t get a dime’s discount on the car and they’ve never spent a nickel on warranty repairs. The bottom line is that a free engine/powertrain warranty is just like free advice…it’s not worth anything.

*CORRECTION: It has come to my attention that not all of these warranties exclude seals and gaskets. In particular, Bev Smith Toyota and West Palm Beach Nissan both offer free lifetime powertrain warranties that do cover seals and gaskets.

1 comment:

  1. Bev Smith Toyotas lifetime warranty does cover gaskets and seals, clearly states in the warranties paperwork. I asked specifically, also covers the engine control unit. But I think the advice is good. Be careful when you blanket all the dealers with these statements.

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