A popular new trend in the automotive retail world is the promise of a “Lifetime Warranty.” Dealers are offering this “no charge” benefit as a way of attracting more customers to their stores. And while a Lifetime Warranty sounds great on the surface, as you begin sifting through the details, even this “free” offer leaves a lot to be desired.
Buyer Beware
First of all, there are no national Attorney General advertising guidelines for what exactly a “Lifetime Warranty” is, or what it should cover. While those two words together imply the product will be covered and repaired, like-new, for life, even a cursory look at the details reveals that’s not the case.
A warranty is only as good as the company behind it. Consumers should be wary of the quality of the offer when the company “giving” you the warranty is not the company behind the warranty. A dealer may imply that they’re offering the warranty, but it’s actually a third-party company from another state.
Read Carefully
In one local example, that third-party company is Warranty Acceptance Corporation (WASCOR), which was founded in May 2006. Their offer of a lifetime warranty is optimistic since the product that they’re covering already has a five-year, 60,000-mile powertrain warranty from the factory. So WASCOR won’t even have the risk of a claim for a few more years. Read their policy carefully and you’ll find big gaps in coverage, such as no mention of who pays for labor (only parts are mentioned as covered). Replacement parts can be used or remanufactured. And worst of all, if the cost of the repair exceeds the book value of the car, the warranty is void. So in reality, the Lifetime Warranty isn’t covering a lifetime at all.
Long-Term Satisfaction
In reviewing the automotive landscape, the more reputable dealers seem to be steering away from such offers. Why? They may be sacrificing short-term promises, but what they’re protecting is their long-term reputation and credibility, and more importantly, ensuring that their customers are happy for a lifetime.
For more information, visit: www.LifetimeWarrantyMyths.com.
