Chrysler Drops Lifetime Powertrain Warranty. Reason? WHAT A JOKE!

[rrocket]

Was listening to the radio today, and some Chrysler talking head was explaining that the automaker was no longer going to offer lifetime powertrain warranties.  Now get this...according to this talking moron head, he said they did market research that showed consumers preferred a fixed time period warranty over an unlimited time warranty!  WTF??  He has to be kidding!

CHRYSLER MARKET RESEARCHER:  "Ok sir...what type of warranty would you prefer?  One that lasts five years, or one that lasts FOREVER?"

GUY: "Oh, I much prefer a warranty that runs out so I'll have to have out-of-pocket expenses on your dodgy powertrains"

WTF?  Is this a joke?  No..it IS a joke.  Chrysler is a joke.....

**EDIT**  Here the guy (I believe) was on the radio:  http://www.freep.com/article/20090820/BUSINESS01/908200414/1002/BUSINESS/Auto-news-in-brief--Chrysler-to-drop-lifetime-powertrain-warranty

[wing]

I like how you slipped "Dodgy" into there

[toolatecrew]

Well Chrysler obviously listens to customers right?

OK focus group which do you prefer the soft touch interior with the good fit and finish or the crappy plastic interior ?

Focus group in huge loud voice: WE HATE THE CRAPPY PLASTIC INTERIOR.

Chrysler:OK its unanimous everyone wants the crappy plastic interior. We'll put it in all our cars thanks for your time.

[wing]

Benefit of the doubt:
In addition, the 5-year, 100,000-mile warranties will be transferable to new owners if the vehicles are sold before they run out. The previous lifetime warranties were not transferable.

Some people may like the fact they can sell it with a warranty where as with the current warranty it is void when sold.

[toolatecrew]

Benefit of the doubt:
In addition, the 5-year, 100,000-mile warranties will be transferable to new owners if the vehicles are sold before they run out. The previous lifetime warranties were not transferable.

Some people may like the fact they can sell it with a warranty where as with the current warranty it is void when sold.

Pretty shakey logic if you ask me.

IF you sell the car within 5 years the person who buys the car might get some extra warrantey? Very little benifit to the origional purchaser.Maybe it makes the car worth a couple 100 more? A pittance compared to the deprciation.

Lifetime warranty? You can keep the car much longer. Chances are after 8 years any deffective part covered would have failed right? There really is no valid reason customers would prefer a SHORTER warranty. This is pure $ saving IMO orojecting costs that far out is probably a nightmare. They probably need to keep bigger reserves to cover it.

[initial_D]

I didn't know Chrysler did offer that type of warranty before.

Would work out better if they just come out and say it as it: we have no money to honor the warranty claim, here is $500 that you can use towards the purchase of a new Chrysler.

[airbalancer]

Was it not offered in the US only, if that is the case who cares

[safristi]

.

Would work out better if they just come out and say it as it: we have no money to honor the warranty claim, here is $500 that you can use towards the purchase of a new Chrysler.


[/quote]...................

  I tho't "CASH fer CLUNKERS" woz finished..................

[Honda Owner]

Chrysler offered a 7/115 warranty on all their products from the 80's to early 90's I believe. They reason they dropped it was pretty simple: too many claims!

[Mitlov]

Was listening to the radio today, and some Chrysler talking head was explaining that the automaker was no longer going to offer lifetime powertrain warranties.  Now get this...according to this talking moron head, he said they did market research that showed consumers preferred a fixed time period warranty over an unlimited time warranty!  WTF??  He has to be kidding!

That's likely a simplification of the study's findings.

The lifetime powertrain warranty was not transferrable; the 5-year is.  The new warranty will slow depreciation.  It's thus a much better deal for a new car buyer who is not planning on driving the new car for 5+ years.

Also, the lifetime warranty required regular inspections by a Chrysler dealer in addition to maintenance.  That's a hassle for anyone, and a big problem for those who use third-party mechanics.

[tenpenny]

How many original owners keep their Chryslers for more than 5 years?

Not likely many.

In which case, a transferrable warranty has more value than one that doesn't.

[toolatecrew]

How many original owners keep their Chryslers for more than 5 years?

Not likely many.

In which case, a transferrable warranty has more value than one that doesn't.

I'd be curious to see the data. A year or two I would have agreed with you. I would guess the average Chryser was turned over every 3 to 5 years. But Chrysler doesn't LEASE anymore. I'm going to guess that most cars are now financed over 5 years or MORE. The turnover will go down simply because of fewer leases.

[TopGun]

I'd be curious to see the data......

Typical...it's OK to pile-on based on no data below...but now you want to see the data.

Pretty shakey logic if you ask me.
.....
.....There really is no valid reason customers would prefer a SHORTER warranty. This is pure $ saving IMO orojecting costs that far out is probably a nightmare. They probably need to keep bigger reserves to cover it.

Hello...warranties are insurance...ofcourse they're about savings (profit).  Isn't that one of the biggest complaints 'round here about the Big 2/3...that they didn't make money?

Oh ya...I'm sure that you'll all want me to go back and count the posts now to see the data right?

[toolatecrew]

I'd be curious to see the data......

Typical...it's OK to pile-on based on no data below...but now you want to see the data.

Pretty shakey logic if you ask me.
.....
.....There really is no valid reason customers would prefer a SHORTER warranty. This is pure $ saving IMO orojecting costs that far out is probably a nightmare. They probably need to keep bigger reserves to cover it.

Hello...warranties are insurance...ofcourse they're about savings (profit).  Isn't that one of the biggest complaints 'round here about the Big 2/3...that they didn't make money?

Oh ya...I'm sure that you'll all want me to go back and count the posts now to see the data right?

You didn't put my quote in context at all.

I was curious to see the data on who long people keep their chrysler nothing more nothing less.That comment is not related to my assertion that customers prefer LONGER warranties. I can site numerous examples of people yelling"If their cars are good quality why don't they have a "long warranty" or GM putting 5 year 100,000 KM wrranties on their cars to "prove quality".

People want longer warranties. Very few consumers are sophistacted enough to buy cars on payments financed over 72 months and say "Gee this car has a 5 year transferable warrant. That will translate to an extra $200 if reold in 4 years, $100 if sold in 5 years and 0$ is sold in 6". Its sill.

I have no probalem with Chrysler pulling lifetime warranty if they determined it was not cost effective. NONE. Just don't treat us as stupid by trying to spin it that people asked to have warrantey shortened.