Auto Warranty News

A Canadian automotive journalist is asked to explain the difference in warranty coverages between the US and Canada.

Q: I read with interest your recent column regarding different recommended mileages for similar repairs. I have always wondered why some North American car companies offer basic warranties of three years or 60,000 kilometres in Canada, whichever comes first, while at the same time they offer three years / 60,000 miles in the U.S.

Should they not be offering us at least 90,000 kilometres to make up the difference? I have asked car dealers this quite often but have got no answer except a smile and a shrug. My answer to them is: When you decide to get serious, let me know.

By the way, I drive a Hyundai, mainly for the above reason.
A:“…We get short-changed on warranties by more than one manufacturer, compared to our cousins to the south.

Why? Call far enough up the food chain at any of the Canadian head offices and you’re likely to hear phrases like “market forces” or “competitive positioning” or “consumer demands.”

From my own experience in closed-door meetings with manufacturer representatives, most U.S. head-office executives consider Canada a very expensive place to have warranty repairs completed. Canadian dealers, in fact, are constantly berated by these officials due to their perception of our higher warranty costs.

In our defence, we have a much harsher climate and higher road-salt use than the average U.S. jurisdiction, leading to more expensive repairs. And even our universal health-care system doesn’t keep our technician labour rates from exceeding the American national average.

As well, our widely spaced dealer groups in thinly populated areas run up the costs of distributing parts and training technicians. I also like to believe that the average Canadian car consumer is more aware of his or her rights than even the most litigious U.S. auto buyer, and this type of consumerism keeps warranty bills rising.

All that aside, however, my quick Internet survey of three Detroit and two Asian carmakers shows that for the 2007 model year, only General Motors and Kia offer longer standard coverage for vehicles sold in the U.S. than in Canada. Chevrolet offers three years or 60,000 miles in base warranty coverage on its standard car line in the U.S. while Canadians get only three years or 60,000 kilometres.

Kia offers comparable base coverage for Yanks and Canucks, but its powertrain coverage is 10 years or 100,000 miles south of the border and only five years or 100,000 kilometres up north.

Note, though, that the U.S. powertrain warranty is not transferable and applies only to the original owner. Most buyers won’t keep their cars for a decade, and this helps the manufacturer keep its costs down. In Canada, warranties must be transferable.
Source

China will test America’s small car market with the introduction of it’s Chery A1 model, to be introduced via Chrysler Daimler. It sells at the equivalent of 5000 US in China.

“China’s Chery Automobile Co. Ltd will present its “Chery A1” model, the first collaboration with Chrysler Group under the U.S.-German carmaker DaimlerChrysler, in April at the auto exhibition in Shanghai, according to an announcement of Chery.

The “Chery A1” will be the first of at least six small vehicle models to be manufactured by Chery with the cooperation of Chrysler under their collaborative production plan for small vehicles.

The Chery A1 is an updated subcompact model of the Chery QQ, known as the “Chinese Beetle”, with a 1.3-litre petrol engine designed to run at a top speed of 156 km/h. The new car, aimed at younger customers, is expected to sell for 40,000 to 65,000 yuan (5,000 to 8,125 U.S. dollars) on the Chinese market.

The Chrysler Group previously reached an agreement with Chery to distribute Chery-made small vehicles internationally to tap the small vehicle sector in the U.S. more quickly with less capital spending.

The new model will probably be sold under the Chrysler brand, Dodge, in the North America market, Shanghai Securities News reported.

Established in east China’s Anhui Province in 1997, Chery is one of the few Chinese companies that successfully produce their own models rather than manufacturing foreign brands under licence.

The company was the country’s seventh largest auto maker and fourth largest producer of sedans in 2006. It exported over 50,000 vehicles last year, up 178 percent over the pervious year.”
(source)

The internet has begun to address the world of women and cars. I’m not sure how deeply they examine used car warranties, or insurance issues and I haven’t found a woman’s four wheeling site yet but the newly launched Ask Patty’s Week Around the Auto World Blog Carnival will introduce you to several female oriented car sites such as Car Care 4 Us Girls. A definite plus for the fledgling female mechanic are their how-to videos and tutorials.

“Car Care 4 Us Girls offers step by step video tutorials on all major aspects of general car care.

Our unique training course helps you understand how to take better care of your car! By following our video tutorials you will be show step by step how to look after your car!

If you take good care of your car you can travel worry free or more importantly your family and friends can travel and you will be worry free!

Remember though: Just be cause you can do it, doesn’t mean you have to!”

The week-end is almost here and spring is in the air and wouldn’t an open road in this Spanish beauty be oh so sweet. Yes, we are just looking for an excuse not to concern ourselves with new car warranties or used car warranties or any sort of warranty at all. We are taking a few imaginary breaths of air in the stratosphere where there is no need or thoughts of warranties or guarantees – just a long and winding road before us. We will return to our regular programing shortly, but, until then, we can all dream, right?
This is described by MSNBC’s article as one of the “quirky cars that you won’t see on US roads” and with only 12 made, I imagine that they are right. If you’d like to daydream in deeper detail, here is the Tramontana site.

“The Spanish company A. D. Tramontana created this carbon-fiber road missile as a melding of Formula One cars and fighter planes. With a twin-turbo V12 engine that puts out 720 hp, it’s about as powerful as a race car. The company says the Tramontana was “modeled on the streamlined curves of the Costa Brava’s winds.” A concept version of the Tramontana was shown at the Geneva Auto Show two years ago. The full production version unveiled this year will go on sale this summer in Europe. Typical of European haute couture cars, prices were not part of the announcement. But judging from production that’s said to be limited to 12 vehicles a year — plus an interior treated with gold, silver and platinum accents, as well as stainless steel, exotic leathers and specially treated wood — the Tramontana will be priced such that those who can afford it probably won’t even be asking, “How much?”’
(source)

Personally, I’ve never seen a pothole big enough to fish in but it would be comparable to the hole in your wallet that most tire purchases create. When that new rubber bites into a pothole 6 months later,you’ll be wondering why you didn’t consider getting that Road Hazard warranty on your tires.

Manufacturers’ will warranty against defect,but, unfortunately, there is no auto warranty or tire warranty that will protect you against your town’s insufficient road repair budget. You have an auto warranty, give due thought to a road hazard warranty too.

“Most tires come with a warranty which covers workmanship and materials. In other words, the tire maufacterer covers things which are in their control, like defects. They are not interested in warranting the condition of the roads or your inability to hit debris.

This is where a Road Hazard warranty can save you money and aggravation. Road Hazard warranties are one of the best values, yet one of the most misunderstood benefits. Let’s start off by expalining exactly what is a Road Hazard warranties and how does it save me money?

Most Road Hazard warranties are set up to protect you, from paying full price, even if you happen to get a flat or even destroy a tire beyond repair. If you are fortunate enough to have purchased the warranty, you will only pay for the amount of tread that you used prior to the needed replacement. (This is called pro-rated).

Here is an example. Let’s say your tire is 1/2 way worn at the time of the flat. With tires averaging $100 each, your replacement cost would only be $50.00. Much better than full price, yes? Definitely – great value.

Typically, Road Hazard warranties will cover things like nails, glass, metal, stones etc. and almost anything else that could puncture or damage a tire. Some Road Hazrd packages provide a nationwide coverage, which are great for people who are traveling, or vacationing, because you now have peace of mind knowing that you are protected while away from your local area.

In addition, many Road Hazard warranties offer other benefits like free rotations and free balancing (check where you purchase your tires for all the details). Regular maintenance is the best way to extend the life of your tire and get as many miles as possible for your investment.”
from MyHonestMechanic/GeneGrant

There are many practical considerations in buying a used car as well as some sound reasons to choose a used car over a new car purchase. After all, it is a maxim in auto purchases that a new car starts loosing value the moment that you drive it off the lot.

Often you can find a used car that has bells and whistles that you could not have afforded if buying new. A friend bought a used Jeep that included a wider wheel base, AC, CD player and leather interior – none of which he could have afforded new.

Once you have decided on buying a used car, the usual applies. Does it meet all of your needs? Is the financing being offered the best that you can do or should you shop further? Have you a mechanic friend that can examine it for an independent evaluation?

And then there is the used car warranty. Sometimes, if the car is a late model vehicle, there may be a remainder of the manufacturer’s warranty.You will find that there is no standard used car warranties and that the most common used car warranties are the 3month/3000 mile used car warranty that will cover major components.

Kelly Blue Book is an excellent online source to pricing used and new cars and offers basic guidelines for either purchase.

For used car shopping, they suggest the following:

• Find Out How Much You Can Afford
• What’s the Right Car for You?
• Find Your Car’s Value
• Contact and Communicate with the Seller
• Get Both a History and a Safety Report on the Car
• Conduct a Thorough Walk-Around
• Conduct a Thorough Test Drive
• Go the Extra Mile to Assure Quality
• Negotiate Your Best Private Party Price
• Negotiate Your Best Dealer Retail Price

(Source)

If you are a Dodge Durango or Jeep Liberty owner, be aware that your vehicle could possibly be rounded up in a recall issued by Chrysler for almost a half million automobiles.

“Chrysler “Group said on Friday it would recall almost half a million vehicles, including recent models of the Jeep Liberty and Dodge Durango after reported fires and its new Dodge Avenger sedan because of faulty door latches.

Chrysler said it took the action after receiving reports of dozens of cases in which the Durango or the Liberty caught fire.

The sweeping recall of over 489,000 vehicles was the second such action by Chrysler in two weeks. In late February, the U.S. automaker recalled almost 51,000 vehicles to reprogram software for anti-lock brakes.”
(source)

In other recall news, police officers will find that their Crown Victoria might be part of a recall involving over 100,000 vehicles. The problem seems to stem from faulty wheels that tend too fall apart during a high speed chase.

“Ford Motor Co. will recall 109,664 Crown Victoria police cars because of cracks that can develop in the police cruiser wheels causing rapid air loss during high-speed pursuits.

The cracks have been reported in a small percentage of the steel wheels on 2003 to 2005 Ford Crown Victoria Police Interceptors. The wheels were covered by a Ford extended warranty program, according to a company executive.

Ford notified the National Highway Traffic Safety Administration of the problem stating that the cracks can form near the weld line that connects the rim to the wheel disk.

Ford dealers will inspect and replace the wheels and the spare as needed.”
(Source)

No matter what auto warranty covers your hybrid, the concept itself is not turning out to be the big money maker that foreign and domestic brands had imagined. Since there is no auto warranty that covers resale or secures a good return on the premium consumers pay for hybrids, you might want to re-think a hybrid purchase.

“A few years ago, automakers decided to put hybrid technology in regular models. The hope was to move beyond the geek chic of the Prius and win over everyone else. Hybrid would be another option, like , say, navigation. If enough people bought hybrids, carmakers figured, they would achieve sufficient economies of scale to eliminate the big premium over conventional models.

That hasn’t happened. And some models have suffered badly. Honda Motor Co. (NYSE:HMC – News) sold 70% fewer hybrid Accords in 2006; Toyota has sold 24% fewer Lexus RX 400h sport-utility vehicles so far this year. The fuel savings are simply too puny to offset the hybrid premium. With gas at $2.50 a gallon, it would take 10 years to recoup the extra $3,000 cost of the Accord hybrid.
[..]
Getting prices down–and not by discounting–is the long-term solution. That means finding a way to make the cars more cheaply. Batteries account for about half the hybrid premium. But cheaper lithium ion cells won’t appear for several years. Cutting costs further requires achieving those elusive economies of scale, which means building and selling more hybrids. That’s Toyota’s strategy; it hopes to sell 160,000 Priuses this year, up from 107,000 in 2006.”
(Source)

If you are interested in buying a used hybrid car you may wonder what criteria you should use to evaluate the car. How different are they from a regular used car? Are some parts more subject to wear than those found on a normal vehicle? Are they as safe as a regular automobile? What type of used car warranties are available for the hybrids?

“One of the biggest concerns relating to buying a used hybrid car is the hybrid battery. I am often asked Each hybrid car manufacturer has different warranties for their hybrid components, varying from 8 year/ 80,000 miles for Honda products, to 8 year/100,000 miles for Toyota products. (This is a generalization. Check the with the manufacturer’s customer service for specifics.)

Currently replacing a hybrid battery after the warranty has expired could cost in the $2,000 – $3,000 range, although I have yet to hear of someone actually paying for one in full on their own. The only hybrid batteries that I have heard needing replacement out of warranty relate to certain 5-speed Honda hybrids and even then, hybrid owners have reported that Honda stepped forward and paid for some or all of the bill.

Prices for hybrid batteries will come down as more hybrid cars are on the road, and as battery technology improves.”
from About.com

Other factors to take into consideration are insurance costs, depreciation and the ease with which one can obtain replacement parts.

You have always wanted a Jeep. You have investigated new car warranties and Jeep satisfies your requirements there. But you are not quite sure which style or model Jeep to choose.
MSN/ Autos offers the following Consumer Report’s review of the 2007 Wrangler Sahara

Highs: Off-road ability.
Lows: Ride, handling, braking, noise, fuel economy, fit and finish, visibility, front-seat comfort, access.

“The redesigned Wrangler is more civilized but makes many compromises for its off-road capability. The ride, handling, and powertrain are all improved, but the Wrangler still falls short when driven on-road. Handling is compromised by vague steering and low cornering limits. The ride is steady but stiff. The 3.8-liter V6 engine lacks punch and delivers dismal fuel economy. Improvements like the available four-door body style, five-passenger capacity, up-to-date safety features, and more creature comforts make living with this Wrangler more palatable than ever. Off-road capability remains extremely impressive.”

Consumer Reports Bottom Line Price
The Consumer Reports Bottom Line Price is the dealer invoice minus any holdbacks, national dealer incentives, and customer rebates.
Bottom Line Price Range: $16,866 – $25,438