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-   -   Should Jeep offer longer standard warranty? (http://www.jeepgarage.org/f107/should-jeep-offer-longer-standard-warranty-23125.html)

rszwestko 05-12-2011 10:30 AM

Should Jeep offer longer standard warranty?
 
I started this thread in hopes to spark some discussion regarding the standard warranty 36k/3 years. Most foreign car companies offer at least 50k/4 year warranty. Personally I feel it doesn't cost car companies to offer longer warranty since most cars last without major problems for 3 to 4 years (at least from my experience). If chrysler was to offer lets say 50k/4yr. warranty this would boost consumer confidence and eventually drive up sales even more. At the same time the increase in warranty may also help a little with residual values which are pretty low right now. I am sure that other car companies have their longer warranty rolled into the price of the vehicle but most car buyers don't realize that when purchasing a new car, they just look at the final number. I am also aware of the fact that Jeep offers extended service contracts which is great considering it provides lifetime coverage, however its an additional expense to the consumer who might think twice before spending the money.
What do you guys think? should Jeep offer longer warranty (along with extended contract) or should they leave things as they are....
flame away

dubwarren 05-12-2011 10:41 AM

As a customer, I'm all for a longer warranty.

moosehead 05-12-2011 10:54 AM

Agreed, though IMO the going in price is so fair for the WK2 with 3 yrs coverage, that buying the extended or lifetime Chryco coverage was also a no brainer price value. YMMV.

JayB 05-12-2011 11:57 AM

Re: Should Jeep offer longer standard warranty?
 
A longer warranty definitely will cost Jeep / Chrysler a hell of a lot more money.

They offer a lot of options for extended warranty. For customers who like the safety and security of a warranty, they are free to buy those.

Please do not raise the cost of a vehicle by adding additional warranty that some consumers may not want.

More options are better.

my $.02

Technosavant 05-12-2011 01:25 PM

Re: Should Jeep offer longer standard warranty?
 
I think they'd sell more. This is the company (different owners, but same company) that came up with the Lifetime Powertrain warranty a few years ago, and that did go a long way to bringing new buyers over- buyers who might have previously never set foot in a Jeep dealership.

IMO, they ought to take something like their "Added Care Plus" (which is powertrain, suspension, A/C, etc.) and extend it out to 60K miles or so. Sure, it would potentially cost them more money, but not a ton more, and it would potentially give buyers the happy feeling that the vehicle is still going to be covered about the time that 60 month loan runs its course.

JayB 05-12-2011 01:52 PM

Re: Should Jeep offer longer standard warranty?
 
Just wondering if any of you commenting on how much warranty claims cost a company have actually seen any hard data?

Even with the best manufacturing and assembly for a product that is designed very reliably... with a large amount of units (very complicated units with a ton of parts)... warranty claims are immense!

The company must account for these costs and they will be passed on to the consumer.

suprand 05-12-2011 01:58 PM

Re: Should Jeep offer longer standard warranty?
 
I wouldnt say "most" foreign companies offer more than 3 yr/36,000...its typically luxury brands that increase the warranty. Honda, Toyota, nissan....same as jeep. But at least most of the american companies have superior powertrain warranties.

http://www.cars.com/go/advice/Story....ry=manWarranty

RageOfFury 05-12-2011 02:29 PM

Re: Should Jeep offer longer standard warranty?
 
I don't know about you folks in the USA, but here in Canada all Chrysler vehicles have a 5yr/100K KM Powertrain Warranty. This is in addition to the bumper to bumper 3yr/60K KM warranty.

ColdCase 05-12-2011 02:40 PM

Re: Should Jeep offer longer standard warranty?
 
I noticed the 5yr/100,000 mile warranty on my US vehicle, wonder if that was a recent change. Bumper to Bumper is still 3yr/36K

rszwestko 05-12-2011 02:41 PM

Re: Should Jeep offer longer standard warranty?
 
Quote:

Originally Posted by JayB (Post 413786)
Just wondering if any of you commenting on how much warranty claims cost a company have actually seen any hard data?

Even with the best manufacturing and assembly for a product that is designed very reliably... with a large amount of units (very complicated units with a ton of parts)... warranty claims are immense!

The company must account for these costs and they will be passed on to the consumer.

Great points, I cant speak for the auto industry, however back in late 1990's when I worked for a major computer vendors (Apple) service provider (aka, computer dealership). We did tons of warranty work, our standard hourly rate was $90 per hour. Usually when a user had a hardware issue and it was covered under warranty we filed a claim with Apple and were reimbursed per repair not per part replaced. We also had a strict system where we could only replace 1.2 parts per machine otherwise we would get rating penalty. So we basically had to get it right the first time on what was wrong with the machine. My point is that we got reimbursed a fraction of the cost, if I remember correctly it was about $35 per repair. Being that the parts used were refurbished I am sure Apple saved on the hardware end as well. I am not saying its cheap or free to provide service but I am pretty sure they are not list prices that we consumers are being charged at the dealership.
I would love to see actual data on how much it costs car companies to provide warranty work.

rszwestko 05-12-2011 02:45 PM

Re: Should Jeep offer longer standard warranty?
 
Quote:

Originally Posted by suprand (Post 413790)
I wouldnt say "most" foreign companies offer more than 3 yr/36,000...its typically luxury brands that increase the warranty. Honda, Toyota, nissan....same as jeep. But at least most of the american companies have superior powertrain warranties.

http://www.cars.com/go/advice/Story....ry=manWarranty

You are correct, nice chart. Makes me feel better that Bentley owners have the same warranty as Jeep. I am sure they are not as worry about possible repair bills past the warranty period as much as Jeep owners are.:lol:

JayB 05-12-2011 04:07 PM

Re: Should Jeep offer longer standard warranty?
 
Yes, a service organization that provides warranty support for the manufacturer gets paid by the manufacturer to provide the repairs. There are a lot of different terms and conditions set forth by different manufacturers.

Typically the service company gets paid a reasonable rate, but it is lower than what they would charge otherwise.

Therefore, increasing the manufacturer's warranty period not only costs the manufacturer more, but it also takes money off the plate of the service organization.
However, you could argue the other point that says the specific manufacturer's authorized service organization will gain business by the increased warranty because the consumer who now has a problem that is under warranty versus not will go to the authorized warranty repair place instead of shopping around. Therefore, the service organization will make more money even if it is at reduced prices.
But then you could argue that this takes money from independent service company's who may provide the service to the customer after warranty has expired.
Robbing from peter to pay paul?

Either way, I'd rather have a choice down the road IF any repairs are necessary rather than paying more for peace of mind up front.

On top of that... I'd rather pay more up front for a product that is proven to have less down time or probability of failure/need for repair.

Now you must be thinking to yourself... "Why'd this guy buy a Jeep then?"

Well... I like the way it looks ;)
and a whole bunch of other reasons.

But, knock on wood, I haven't had any issues yet except doing the ESC and Trans/driveability computer flashes....

We'll see how it pans out. I'm just hoping for not much down time out of the Jeep.


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