If I remember correctly third party warranty deal (such as those sold with second hand or "approved" range) costs dealers no more than £60 a year, so cost of adding extra 2 years of peace of mind warranty to original 3 would be laughable. I suppose however, the rules of extended warranties on second hand market are clear but one could be worried about interpretation of the 5 year "from new" manufacturers warranty - you don't really want customers to come back with 5 year old car complaining about mundane things, like squeeking panel or bald patch on a seat squab...
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[Nissan 2.2 dCi are NOT Renault engines. Grrr...]
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USA - I thought cars do colossal mileages over there so are there any mileage limitations to American warranties ?
Many US warranty terms are actually worse that in Europe. It is normal for manufacturer to give 5 year warranty which includes 3 year 36k miles warranty for the whole car and 2 extra years up to 60k miles warranty on engine and drive train only....
US sold Volkswagen cars, as an example, are covered with only 2 years warranty limited to 24k miles for the whole car plus extension to 10 years and 100k miles for engine and transmission. For many drivers it means no come back to fix dead display or loose trim after few months...
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[Nissan 2.2 dCi are NOT Renault engines. Grrr...]
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its obvious why the motor industry only gives the minimum warranties they can get away with really isnt it?
as for hyundai and kia its a marketing tool to get to buyers that "no nowt about cars" into the showrooms and getting bums on seats
and good for them,why give 5 years when you can get away with 3?
i think you will find that 10 year warranties in the usa are actually state forced but would be happy to be corrected (vin? ;-) )
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It must, as BobbyG says, be as dictated by competition.
If Hyundai's sales were rocketing, other manufacturers would follow suit. As it is, no real incentive for them.
Hyundai's UK market share stats as follows:
2000: 1.18%
2001: 1.10%
2002: 1.14%
2003: 1.25%
2004: 1.47%
2005: 1.50%
2006: 1.52%
2007: 1.24% (year to date)
Respectable - at least until this year - but not something that will worry other manufacturers.
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It's a bit strange why Kia offers 7-yr warranty on Cee'd only! AFAIK, Hyundai & Kia are same company.
So, when Hyundai is giving 5-yr on all models, Kia should also follow same path.
All of a sudden, just because of long warranty period, Cee'd is in the limelight everywhere.
It would also be interesting to note what are excluded from warranty. Hyundai says following components are covered only for 2-yr - lights, brake pads, clutch, battery. wiper etc. (quite clearly explained in their website).
However, in some other manaufactuers websites, they are not so vocal exactly what are covered and what are not. I don't think all manufacturers cover all parts for full 3 years.
Hyundai started 5-yr offer since 2002. So, this year many cars will complete 5 years. I'd be interested to see how Hyundai have honoured their warranty in reality for 5-yr old cars.
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7 year warranty simply as a USP and a marketing stepping stone - 7 years is huge, enough to get people talking about the car, the more chance the manufacturer has at selling units.
There is a quite a big market for people wanting 7 years peace of mind not just new but second hand too ;)
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Big Market? If there was - they would be getting double digit sales share. They are not, even at the price point they sell at.
Why only three years warranty? I think thats amazing actually. A car is simply the most complicated thing you will ever own in this or any other life time. When you think of what it does, how it works, the parts in it to achieve all this and the terrible conditions it has to do it all in, I blink that makers can offer a three year 60k mile warranty at the price point they sell at.
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TourVanMan TM < Ex RF >
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ive had a few hyundais under 5 years old and never found anything major needing attention under warrenty
i usually find that for the bread and butter cars they sell the customers would at one time have been lada or skoda buyers but ones gone upmarket and ones gone,therefore most buyers are older its their first new car ever and they dont go that far in them,that is why they like but dont normally need any warrenty work doing (its a favourite blanket kind of thing )
Customers that buy my hyundais are usually rinsed in the hair dept dont know how to open a bonnet and dont want to know,they usually have a friend of a friend that also has one and know that they are reliable and cheap.
I have sold a few accents to be chavved up though because you get a good plate much cheaper than a mainstream car
obviously before i get lud or someone getting upset this is just a generalisation and stocks can go up as well as down ;-)
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Customers that buy my hyundais are usually rinsed in the hair dept dont know how to open a bonnet and dont want to know they usually have a friend of a friend that also has one and know that they are reliable and cheap.
It's not just the blue-rinsers that want reliable and cheap you know!
When you have £2000 to spend, most sensible people realise that style and image go out the window. Not everyone makes the Hyundai connection at that point, but it has to be said that for reliable and cheap, a 4-year-old Hyundai (that was well-built to start with) that has been serviced to keep up with the warranty is likely to be a better bet than an 8 or 9 year old VW (which may well have been neglected for several years).
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obviously before i get lud or someone getting upset
What could you mean bb? How could anyone take offence at your limpid and quirky reportage?
If I ever want a Hyundai I'll get my remaining hair done and beat a path to your door. I must say they sound rather good, especially the chavved-up ones :o)
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Has to be said as well that many manufacturers still don't even offer true 3-year warranties.
For example Ford -- their warranty is only a year, with the dealer network filling in the other two years. They (and many other European-based manufacturers) had to be dragged kicking and screaming to even offer that.
Hyundai/Kia's deal is a marketing ploy -- but I'd be very suspicious of any company who fails to back up the first three years itself, rather than leaving it to the dealer.
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I said quite big and this is in proportion too. These cars unlike the focus and golf dont get sold as fleet.
THerefore private purchasing the market for reliable and peace of mind is quite big. THe market share is so low simply because those figures take into consideration fleet too. Take away fleet there is much less difference.
By selling with a 7yr warranty they probably trebled the sales of that car even if the numbers are low in the grand scheme.
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Fleets managers buy on 4 crieria - in order of importance.
1/ Residuals - its an important part of the whole fleet cost case
2/ Discounts - for that read purchase price.
3/ Running costs - for that read servicing, warranty and reliability.
4/ Users requirements
Korean cars should tick boxes 1, 2, & 3 given the attractive warranty.
They dont - 1/
Residuals are bad because no one wants them second hand. Despite the attractive warranty. They are cheap, they have long warranty, but no one wants them.
In practise, its probably only the warranty thats making any move out the showroom at all.
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TourVanMan TM < Ex RF >
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Loads of them as hire cars in Greece tho.
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TourVanMan TM < Ex RF >
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i think you will find that 10 year warranties in the usa are actually state forced but would be happy to be corrected (vin? ;-) )
It looks like it's completely unregulated market actually - some European "reliability" names - Ford, Honda, Suzuki, Mazda offer strictly 3 years 36,000 miles warranties on their cars with no extensions whatsoever. Other makes, not known on our side of the pond for being especially generous in terms of customer care go out of their ways to please Yanks - Mitsubishi cars are sold with minimum 5 years/60k miles basic warranty and 10 year/100k powertrain peace of mind, Saab, Jaguar and Audi stretch their minimum warranty to 4 years and 50k miles etc etc.
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[Nissan 2.2 dCi are NOT Renault engines. Grrr...]
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Unless I have misunderstood your point v0n the the manufacturers you list provide better warranty than you state - Honda for instance is 3 yrs (as you say) or 90,000 miles.
You can then purchase additional.
I think when makers feel they need to offer them for sales such as the Toyota/Lexus and Honda Hybrid systems where the electricals are warranted for 8 years then they will.
As said above - market forces will drive it.
If we all thought that the warranty was most imrpotant we would be driving new Kia's with 7 years provided.
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Sorry - I hot the button too quick.
I also think that if any of the French or German auto makers offered 5 or 7 years they would probably go bust.
I doubt it would impact the likes of Toyota or Honda much but I suppose that does beg the question when will they follow.
There is no doubt that the car makers could make them last longer and more relaibly than they do.
Cars are not that complicated at the end of the day - it would just mean a compromise somewhere in the chain - e.g. profitability.
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Think about a 6 year old car.
How many have a full service history?
How many use OEM parts?
Although I have no idea , I suggest less than 50%.
To qualify to meet warranty consitions , the car MUST have a fsh (independent or maker).
I doubt many owners of 6 year old Fiestas, or Saxos bother about servicing on the button.
Most people chnage cars within 5 (?3 ) years so 7 years warranty to NEW car buyers is not a draw - in UK at least.
I disagree with previous poster on cost.. some parts - mainly electrics could become very expensive with a 7 year warranty.
(what price Renault diesel engines?)
madf
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Think about a 6 year old car. How many have a full service history? How many use OEM parts?
This is PRECISELY what makes these Korean cars such a sensible purchase second-hand.
To keep the warranty, owners are forced to keep up with the schedule. So, you just get one for next to nowt at 3 or 4 years old, which (a) has a warranty, and (b) you know has been looked after because otherwise there'd be no warranty.
Short warranties encourage neglect. Once the car is out of warranty, people go to back streets. Then they forget to do that.
Then the sharks invent a service log and the owner at 6 or 7 years old -- who has paid the same as the 3-4 year old Korean buyer -- is shafted with a car that is falling to bits because it's been neglected.
Never fear though, because the same buyer will do the same thing again a couple of years later, and so it goes on.
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Unless I have misunderstood your point v0n the the manufacturers you list provide better warranty than you state - Honda for instance is 3 yrs (as you say) or 90000 miles. You can then purchase additional.
Well, Honda's US website clearly states 3years, 36,000 miles...
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[Nissan 2.2 dCi are NOT Renault engines. Grrr...]
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I think TVM has hit the nail on the head, actually. Guaranteeing a car for three years is a brave thing to do in many ways.
You have no idea how well it is really going to be used/abused. The variety of owners and their expectations of the car must be almost unquantifiable. The ability of them to use the car in a sensible manner must vary immensley.
We have stories in the backroom all the time about one carefull owner, 1000 miles per year, others of 20000 miles per year, no servicing etc.
Our products are sold with a one year or two year warranty depending upon customer contract and have less parts to go wrong than the average air con units fitted to cars.
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>>Well, Honda's US website clearly states 3years, 36,000 miles... <<
I see what you mean although post 2006 cars have 5 year 60,000 powertrain warranty and everyting else is 3 year 36,000 miles.
I actaully missed your point about the US - apologies.
mjm - I do find it difficult to agree with gauranteeing a car for 3 years as being brave.
These things are not cheap to buy and cost millions or even billions to develop.
They test every new model type in the harshest of places for millions of miles and we pay for that in the cost of each new car sold.
We should at least get the assurance they will last 5 or 6 years after all that investment.
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'as for hyundai and kia its a marketing tool to get to buyers that "no nowt about cars" into the showrooms and getting bums on seats'
... if its the 'rinsed in the hair dept' buying them as you suggest..does it not equate that these people have actually been buying cars for donkeys years (and most propably know a great deal about costs and what may go wrong- having shelled out for years )and 'now' want the piece of mind of a 5 year warranty?
worth taking the blinkers off and having a good look around and noticing how many young mums are driving these things.. perhaps they have all borrowed them off there grans for the day!
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sorry to disappoint you doog but i get a fair bit of ribbing for being the undi buyer so certainly in my area i do indeed know who the movers and shackers are of new and s/h undies,bare in mind i said bread and butter models not the ones on steroids
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>how many young mums are driving these
Not round my way. Great grand mums maybe.
They are bought round here on the the assumption that the buyer will die before the warranty ends.
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TourVanMan TM < Ex RF >
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