Dealership Lifetime Power train Warranties

SHOdown220

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Honda has this too. Biggest pain in the ass. Oil change every 5k and rotate every 10k. You have a 1k mile leeway. No matter how much service you may have done, if you miss one rotate then that warranty is void.

What Honda warranty are you referring to? Honda doesn't have any warranty with limitations like you are describing, nor does Honda themselves offer a lifetime powertrain warranty. That sounds like a 3rd party warranty. Honda doesn't even recommend oil changes every 5k, its recommended when the maintenance minder gets to 15% oil life.
 

SVTXTC

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1. Who are you?
2. I dont sell Ford ESPs.
3. Get your facts straight before you start vomiting out your mouth.

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My bad and all apologies. I thought I read that you offer Ford ESP but upon further review you offer Century VSC. I don't have any issues with you and know you are a stand up member.

However, as a dealer, offering a lifetime warranty at no charge to a customer with a legitimate insurance backing is not a gimmick (as long as your definition of gimmick is a positive one....and not the majority of negative definitions that are associated with that word). A lot of dealers who compete against lifetime offerings...when they do not offer them....end up trying to mislead prospective customers about the lifetime coverage and benefits of going with a dealer who offers lifetime. If that's not what you were saying then I own my vomit and apologize to you.
 

13COBRA

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My bad and all apologies. I thought I read that you offer Ford ESP but upon further review you offer Century VSC. I don't have any issues with you and know you are a stand up member.

However, as a dealer, offering a lifetime warranty at no charge to a customer with a legitimate insurance backing is not a gimmick (as long as your definition of gimmick is a positive one....and not the majority of negative definitions that are associated with that word). A lot of dealers who compete against lifetime offerings...when they do not offer them....end up trying to mislead prospective customers about the lifetime coverage and benefits of going with a dealer who offers lifetime. If that's not what you were saying then I own my vomit and apologize to you.
It's exactly what I'm saying.

Dealers that do lifetime warranties are only able to do so if 75% of people purchasing vehicles WON'T be able to use it.

If everyone used it, they'd go broke.

We've looked in to it, its not something I would ever want to pitch to someone.

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SVTXTC

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It's exactly what I'm saying.

Dealers that do lifetime warranties are only able to do so if 75% of people purchasing vehicles WON'T be able to use it.

If everyone used it, they'd go broke.

We've looked in to it, its not something I would ever want to pitch to someone.

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So you are saying you were interested in doing Lifetime VSC with your agent and VSC representatives...or maybe another agent...sat down and looked at the program...did a pro-forma based on your current sales volume...and you do not sell that many vehicles at your location to cover the premiums required to fund the loss ratios and are not able to offer the program based off your current production? You aren’t able to cede enough lifetime premium per copy based off your sales to offset losses?
 

Mpoitrast87

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What Honda warranty are you referring to? Honda doesn't have any warranty with limitations like you are describing, nor does Honda themselves offer a lifetime powertrain warranty. That sounds like a 3rd party warranty. Honda doesn't even recommend oil changes every 5k, its recommended when the maintenance minder gets to 15% oil life.
it is third party. But it’s pulled up through Honda’s interactive network so that’s how we are “suppose” to say it. It’s 5k in New England cause we are a “severe service” area. I can’t tell you how many Honda’s I see everyday where that percentage never even comes on. Not a good thing to go by.
 

ON D BIT

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So you are saying you were interested in doing Lifetime VSC with your agent and VSC representatives...or maybe another agent...sat down and looked at the program...did a pro-forma based on your current sales volume...and you do not sell that many vehicles at your location to cover the premiums required to fund the loss ratios and are not able to offer the program based off your current production? You aren’t able to cede enough lifetime premium per copy based off your sales to offset losses?
Now that you’ve made a mockery of your industry and insulted one highest valued member here I would never buy a lifetime or extended warranty by any tri letter plan/product! Your industry is a scam!!
 
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SHOdown220

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it is third party. But it’s pulled up through Honda’s interactive network so that’s how we are “suppose” to say it. It’s 5k in New England cause we are a “severe service” area. I can’t tell you how many Honda’s I see everyday where that percentage never even comes on. Not a good thing to go by.

Ah gotcha, that makes more sense now. I agree the maintenance minder is not smart to go by, but Honda assures the customers that it's fine. And it is fine while the vehicle is new, but when you start getting into higher mileage vehicles people continue to go by it while the car is burning a quart of oil per 1k and they are empty before the minder goes off lol.

Its amazing honda will consider up to 1qt per 1k miles "normal" usage on these oil consumption warranty extensions!
 

Gringo185

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It's exactly what I'm saying.

Dealers that do lifetime warranties are only able to do so if 75% of people purchasing vehicles WON'T be able to use it.

If everyone used it, they'd go broke.

We've looked in to it, its not something I would ever want to pitch to someone.

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The dealership isn’t the one that financially backs the warranty. That falls to the warranty company. If every single person was to effectively use the lifetime warranty, the dealership wouldn’t suffer at all. If anything, it would flourish due to the increased traffic through the service lane. It is the warranty company that would feel the squeeze.
 

SVTXTC

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The dealership isn’t the one that financially backs the warranty. That falls to the warranty company. If every single person was to effectively use the lifetime warranty, the dealership wouldn’t suffer at all. If anything, it would flourish due to the increased traffic through the service lane. It is the warranty company that would feel the squeeze.

This is why some lower volume dealers do not qualify for lifetime. The premium is too high per sale and they can not afford to do it (its a fixed cost per sale to every customer) to cover the losses. Where a larger volume dealer can spread that premium over multiple sales on new and pre-owned.

I am not trying to insult anyone and I will not win a popularity contest against 13COBRA. If he can do no wrong on here and is a sacred cow then I am a troll. If all of his customers bought the Century VSC he offers and all filed claims like he described then Century would go broke by his own logic.

All I’m saying is that lifetime warranties by legitimate companies are not a gimmick. His statement is flat out wrong that 99.99% of them are. The coverages AND the losses/paid repairs are very real.
 

derklug

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So the OP wants to commit fraud before he even enters the dealership, nice.
 

ON D BIT

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The dealership isn’t the one that financially backs the warranty. That falls to the warranty company. If every single person was to effectively use the lifetime warranty, the dealership wouldn’t suffer at all. If anything, it would flourish due to the increased traffic through the service lane. It is the warranty company that would feel the squeeze.
It’s a scam unless backed by the manufacturer. That’s why Nick won’t pitch it to clients. I applaud him for this!
 

Need 04 Wine

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It’s a scam unless backed by the manufacturer. That’s why Nick won’t pitch it to clients. I applaud him for this!

Exactly.
The ones up here pay the dealer quite well to get people to sign on.

I’ve heard of claims being dismissed for engine problems because the brakes were not a factory replacement pad. $20k motor....over brakes.

****ing crooked.


Sent from my POFS iPhone in a rage cause this is the third try.
 

13COBRA

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The dealership isn’t the one that financially backs the warranty. That falls to the warranty company. If every single person was to effectively use the lifetime warranty, the dealership wouldn’t suffer at all. If anything, it would flourish due to the increased traffic through the service lane. It is the warranty company that would feel the squeeze.

I didn't mean the dealership as in the physical store that sells and fixes cars, I meant the dealership as their book of business within the reinsurance company.

If every single person was to effectively use the lifetime service contract, their book of business within the reinsurance company would be in the red, and they would have to pump money in to it to keep it afloat.

So you are saying you were interested in doing Lifetime VSC with your agent and VSC representatives...or maybe another agent...sat down and looked at the program...did a pro-forma based on your current sales volume...and you do not sell that many vehicles at your location to cover the premiums required to fund the loss ratios and are not able to offer the program based off your current production? You aren’t able to cede enough lifetime premium per copy based off your sales to offset losses?

We sat down with our current company and also with Zurich.

Financially, we would make money doing it. From a purely moral standpoint, I NEVER want to be in the position to explain to a customer that their warranty is now void because 'paragraph c, subsection 5, bullet point 14, sentence 2'. It's not going to happen, period.

I'll gladly make LESS money to make MORE people happy.

You either sell reinsurance as a profession, or you've smelled the roses and can't take the glasses off.

This is why some lower volume dealers do not qualify for lifetime. The premium is too high per sale and they can not afford to do it (its a fixed cost per sale to every customer) to cover the losses. Where a larger volume dealer can spread that premium over multiple sales on new and pre-owned.

I am not trying to insult anyone and I will not win a popularity contest against 13COBRA. If he can do no wrong on here and is a sacred cow then I am a troll. If all of his customers bought the Century VSC he offers and all filed claims like he described then Century would go broke by his own logic.

All I’m saying is that lifetime warranties by legitimate companies are not a gimmick. His statement is flat out wrong that 99.99% of them are. The coverages AND the losses/paid repairs are very real.

Right, it's just the dealership (or customer, depending on how you look at it) paying a premium up front and it going in to a big pool. The goal is to make your pool bigger than your leaks (claims), so more water is going in, rather than coming out. Same for any type of insurance.

It is a gimmicky marketing technique, period. It's goal is to 'enroll' as many cars as possible, and pay out the least amount that it has to. Have you read through all the fine print on them? Do you suggest to consumers that they should maintain their vehicle up to 300% more often than the manufacturer states? If so, that's your business, not mine.

I am curious though. Whether you sell XXX cars a month, or X,XXX cars a month...the premium per vehicle (from what I've ever seen) stays the exact same. If there was a breaking point where the premium went down, the risk of more losses wouldn't make sense for their book of business within the reinsurance company.

No one is asking you to win a popularity contest, I could generally give 0 ****s less about it...All I'm saying is that I do not believe in lifetime service contracts and the stipulations that go with them, and view them as a great [gimmicky] sales tactic.
 

Twisted2v

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I didn't mean the dealership as in the physical store that sells and fixes cars, I meant the dealership as their book of business within the reinsurance company.

If every single person was to effectively use the lifetime service contract, their book of business within the reinsurance company would be in the red, and they would have to pump money in to it to keep it afloat.



We sat down with our current company and also with Zurich.

Financially, we would make money doing it. From a purely moral standpoint, I NEVER want to be in the position to explain to a customer that their warranty is now void because 'paragraph c, subsection 5, bullet point 14, sentence 2'. It's not going to happen, period.

I'll gladly make LESS money to make MORE people happy.

You either sell reinsurance as a profession, or you've smelled the roses and can't take the glasses off.



Right, it's just the dealership (or customer, depending on how you look at it) paying a premium up front and it going in to a big pool. The goal is to make your pool bigger than your leaks (claims), so more water is going in, rather than coming out. Same for any type of insurance.

It is a gimmicky marketing technique, period. It's goal is to 'enroll' as many cars as possible, and pay out the least amount that it has to. Have you read through all the fine print on them? Do you suggest to consumers that they should maintain their vehicle up to 300% more often than the manufacturer states? If so, that's your business, not mine.

I am curious though. Whether you sell XXX cars a month, or X,XXX cars a month...the premium per vehicle (from what I've ever seen) stays the exact same. If there was a breaking point where the premium went down, the risk of more losses wouldn't make sense for their book of business within the reinsurance company.

No one is asking you to win a popularity contest, I could generally give 0 ****s less about it...All I'm saying is that I do not believe in lifetime service contracts and the stipulations that go with them, and view them as a great [gimmicky] sales tactic.

How is this 3rd party company going to find out I had a Procharger, or swapped in a used ecu?

I know that most of these companies are not moral. The dealership i bought my ecoboost from only requires ASE oil changes, and ASE write off that it's mechanically fine.
 

13COBRA

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How is this 3rd party company going to find out I had a Procharger, or swapped in a used ecu?

I'm not saying they would or wouldn't know...BUT if a dealership does the repairs and it comes out later, then that dealership will have to come out of pocket for the repairs, and then they will most likely be placed on some sort of probationary period where an inspector has to come out and OK any warranty work done, which leads to longer wait time, missed opportunities and poor customer experience; none of which a dealership wants to have.
 

SHOdown220

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How is this 3rd party company going to find out I had a Procharger, or swapped in a used ecu?

I know that most of these companies are not moral. The dealership i bought my ecoboost from only requires ASE oil changes, and ASE write off that it's mechanically fine.

Every 3rd party warranty company WILL send a hired inspector to verify the concern, vehicle modifications, and suggested remedy when it comes to large claims such as engines, transmissions, and differentials.

Not saying they will catch the swap but that is the sole purpose of their job.
 

01yellercobra

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If you're going to modify your car then don't expect Ford to fix your screw up. You have to pay to play.
 

Corbic

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Yup, and insurance companies are in the business of denying claims. While the guy on the phone will not know what a Bama Tune is or a Procharger, their network will have failure data recorded.

You show up with a busted piston ring land and redflags are going to go off. They'll have a record showing 15 claims rejected because of aftermarket superchargers for similar conditions and they'll dig into your "returned to stock" car.

A dealer isn't about to commit legal fraud either to help you cover up a customer caused failure.

Every 3rd party warranty company WILL send a hired inspector to verify the concern, vehicle modifications, and suggested remedy when it comes to large claims such as engines, transmissions, and differentials.

Not saying they will catch the swap but that is the sole purpose of their job.
 

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