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Chrsler eliminates lifetime powertrain warranty
Posted: Fri Aug 21, 2009 2:33 am
by jake75
I read that effective with 2010 models Chrysler is reducing the powertrain warranty to 5 years/100,000 miles. But it will be transferable to used car buyers at no cost. The old lifetime warranty was only valid for the original owner.
Posted: Fri Aug 21, 2009 5:58 am
by Kincaid
I think this is short sighted and they'll regret it. Flat out screams that Chryslers are unreliable. I liked their new Ram (not to mention the Challenger) but I doubt I'd buy one after they backed away from the warranty.
Posted: Fri Aug 21, 2009 7:25 am
by lovemyraffe
Does it surprise anyone that they are eliminating the lifetime warranty?
Re: (lovemyraffe)
Posted: Fri Aug 21, 2009 10:25 am
by jake75
Reminder - Chrysler had a 7 yr/70,000 mile powertrain warranty for awhile. There was a fee of perhaps $200 for a used car buyer to get that transferred. My 2004 had that and I think it helped my resale. Then in 2005 they went to a 3 year /36,000 mile saying that their research showed the 7/70 was not much of a factor with new car buyers. Then they changed to the Lifetime Powertrain Warranty in 2007 - wonder what research changed their mind - probably none. No doubt just marketing doing their thing. Hyundai and Kia's 5 year/60,00 mile bumper-to-bumper and 10 year/100,000 mile powertrain warranty is probably a big plus - wonder what it costs them on average.
Re: (lovemyraffe)
Posted: Fri Aug 21, 2009 10:30 am
by ColonelPanic
Quote, originally posted by lovemyraffe »Does it surprise anyone that they are eliminating the lifetime warranty?No, considering how we'll soon see Chrysler-branded Fiats over here. Fix it again, Tony! It sounds like they're anticipating reliability to get even worse than its current dismal state. So, original owners who have the lifetime warranty, they still have it?
Re: (ColonelPanic)
Posted: Fri Aug 21, 2009 10:49 am
by jake75
Quote, originally posted by ColonelPanic »So, original owners who have the lifetime warranty, they still have it? I believe and hope that is true. I have a 2007 SWB T&C that bought new dirt cheap in July 2007 - less than most people pay for a Vibe 1.8L base. I drive it less than 5,000 miles a year. I hope to keep it for a long time.
Re: (Kincaid)
Posted: Fri Aug 21, 2009 10:51 am
by jake75
Quote, originally posted by Kincaid »I think this is short sighted and they'll regret it. Flat out screams that Chryslers are unreliable. I liked their new Ram (not to mention the Challenger) but I doubt I'd buy one after they backed away from the warranty.Well 5 years /100,000 miles is the GM powertrain warranty limit as well. Many are only 3 years/36,000 miles powertrain. [Toyota?]
Posted: Fri Aug 21, 2009 11:51 am
by lovemyraffe
Quote, originally posted by ColonelPanic »No, considering how we'll soon see Chrysler-branded Fiats over here.This will be awesome! I can't wait for the Fiat 500. I might trade the Vibe for one.
Re: (jake75)
Posted: Fri Aug 21, 2009 12:07 pm
by Tubaryan12
Quote, originally posted by jake75 »Hyundai and Kia's 5 year/60,00 mile bumper-to-bumper and 10 year/100,000 mile powertrain warranty is probably a big plus - wonder what it costs them on average.In my case, the warranty netted Hyundai / Kia $40000 in extra sales.First 2 Hyundais purchase price - $25000 totalNext 2 Kias purchase price - $40000Total spent on Hyundai / Kia since 2001 - $65,000.00 - not counting interest.I'm willing to bet it makes them a lot more money than it costs. The only repairs we've had so far under warranty on the 4 cars were 4 wheel bearings and a power steering hose. It also cost them a few rental cars and 1 tow. I think in my case they made out well.
Re: (jake75)
Posted: Sat Aug 22, 2009 3:30 pm
by Kincaid
I'm not exactly sure what you mean by this, but I'll say that when Honda and Toyota have 3/36 warranty, everyone knows it is because those companies don't need a longer warranty to attract customers.I don't think anyone is going to think that Chrysler is cutting their warranty because the cars are getting so desirable they don't need it as a selling tool.FWIW, I love the look of the Fiat 500 too. Better yet, the Alfa Romeo MiTo.I love hatchbacks!
Re: (Tubaryan12)
Posted: Sat Aug 22, 2009 9:53 pm
by ColonelPanic
Quote, originally posted by Tubaryan12 »I'm willing to bet it makes them a lot more money than it costs. No doubt! They wouldn't have offered that warranty on their cars for the last 10 years if it was not financially viable. It originally started out as nothing more than a marketing gimmick since their sales were so far down the toilet.. It was said the warranty would go away within a few years but it seems to keep attracting customers so they've stuck to it.For me, it only made them a lousy $14,000 but the most expensive thing they've had to replace was the battery. I'll buy another Hyundai or a Kia when mine is due for replacement.And as far as powertrain claims go, they can still deny claims, and they do... They won't honor the warranty if you have a major failure and have neglected maintenance, abused the car, or if there isn't adequate documentation to prove service history. That saves some dough too.
Re: (lovemyraffe)
Posted: Fri Aug 28, 2009 11:38 pm
by silvrhawk7
Quote, originally posted by lovemyraffe »Does it surprise anyone that they are eliminating the lifetime warranty?Doesnt suprise me... there were sooo many loopholes with that warranty, and the 7/70000 as well.