IMHO it will be around for a while because it has become a core part
part of the company's brand identity.
As Hyundai has been moving up I have noticed other manufacturers
testing out longer waranties to encourage sales. The latest is Ford
offering 5yr/60k mile powertrain on all 06's
No doubt that Hyundai and Kia used it in the beginning as a marketing ploy
to get people to notice their products as up-and-comers in a crowded
But as they have been making quality gains, it has become more of a symbol
of what they can be. It remains a powerful chip to use against cars that
have, maybe a 3/36000 warranty.
In that sense, there will be a lot of heat if they try to drop it. Indeed,
what this most recent poster said makes it clear that this strategy is
affecting the other car makers.
It wouldn't make sense for the warranty to take a step down when they are
forcing everyone else to take a step up.
Just FYI, the local Hyundai/Kia dealer now has occasional sales where they
put 100,000 mile warranties on ALL their cars, new and used, regardless of
manufacturer. Those are the companies biggest volume weekends.
It works. No one in their right mind would try to drop something that works
(or would they??).
When Hyundai indroduced the 5/60--10/100 program, they intended for it to
be temporary. I wouldn't be surprised to see it go away in about the same
period as the OP suggested. But, as has been pointed out, if it becomes
the industry standard, they'll be pretty much forced to keep it.
Chrysler used to have the 7/70 thing, I bought two Chryslers during
that period. Now I own two Hyundais...so I guess I like the ideafew
months to a year. If they dropped the warranty it might affect my
One of the main reasons we bought a new Santa Fe was the warranty. I
figure if Ford, GM and Chrysler. Toyota and Honda don't have enough
faith in their product to warrant it the same as Hyundai, why should I
have any faith in it.
Toyota and Honda have faith in their own products. Their prices are higher
and their warranties shorter because they can get away with it. They can get
away with it because demand for their cars is high. You just helped the
demand go down a little, so good for you!
Why drop it if they are able to maintain their quality and price? You
should look into some of what Malcom Baldrigdge preached and the
Asians bought into. Total cost of ownership is cheaper to build
something right the first time rather than pay for service over the
usefull life. Many folks understand that. Detroit ignores it at
Because it carries the stigma of the cars being low quality if they need
a warranty that long to sell them. Remember, that almost all extended
warranties like that have been instituted by car makers who were having
quality problems (Chrysler with their original 7/70 plan and Hyundai and
Kia when their stuff was junk).
People tend to associate long warranties with low quality as backward as
that seems logically!
Do people actually associate a long warranty with poor quality? I can
see where some may think that, but I bet they're in the minority.
Although I'm speaking strictly from a personal perspective, and I'm
certainly no student of automotive history, I've always thought longer
warranties make for better cars, for a few reasons.
I think most people look at it from the manufacturers' perspective: If
they build a crappy car and put a long warranty on it, they're losing
money... no company is going to do that.
On the other hand, if they build an average car and put a long warranty
on it, they'll break even and both parties will share the headaches of
The best thing for everyone is the offer of a very long warranty. Why?
The manufacturer must be confident that their car will stay out of the
shop, because otherwise they're on the hook for repairs for a long
time. Everyone wins: the consumer gets a good vehicle, the
manufacturer makes a good dollar and a good reputation, and the
warranty is there for peace of mind even though very few need to use
it. The only person who loses is the shop guy/gal (sorry
hyundaitech)... although they probably could keep busy with work that
doesn't fall under warranty, like accidents and modifications and so
If the warranty is transferable, it would also help keep resale and
residual values high.
The worst are the short warranties... because then the manufacturer
doesn't care if their product winds up in the shop after 24-36 months
with a pooched transmission... it isn't their problem.
I agree that some may take the view that a long warranty is a sign of
poor quality, but those same people probably still believe in the tooth
fairy and/or the earth is flat. :)
Matt Whiting wrote:
The highest quality cars (Toyota) have fairly short warranties. Also
the cars that hold their resale value best (Toyota) have fairly short
warranties. So you won't buy a Toyota because the warranty is too short?
I look at it as the warranty only matters if a car has marginal quality.
With a Toyota, I wouldn't even care what the warranty was.
Funny you should mention that, as it is one of the reasons that we
purchased a Hyundai instead of a Toyota. (I do know people who have had
problems with Toyotas, they are not quite as magical as some people
seem to believe.) Other reasons would include overall value for the
dollar, plus I frankly do not feel very comfortable purchasing
big-ticket items from a country which attacked us within living memory.
(My barber, who served on a destroyer and dodged kamikazes at the
battle of Okinowa, does not drive a Toyota either.)
Regarding whether I'd dismiss a Toyota simply because its warranty is
below industry average, absolutely. On the off chance that the Toyota
transmission falls out of the vehicle in 5.5 years, is the Toyota name
going to fix it? No, and there is no warranty to remedy the situation.
On the slightly better chance that the Mitsubishi transmission fails
around 9.5 years, will the Mitsubishi name fix it? No, but the 10-year
I understand how you look at it, Matt, but I'd prefer to have a
warranty contract in place for car malfunctions, rather than hoping the
local high-quality car dealer will "goodwill" me a new transmission. I
guess that my faith in quality doesn't extend beyond the length of the
Matt Whiting wrote:
I really don't think Toyota's & for that matter Hondas are really that
great today! We all saw what a mess the new camry transmissions were...
I think Bob has a point, Longer warranties just show the confidence a
manufacturer has in his vehicles!
Sorry, history doesn't support that. Long warranties have always (I
can't think of a single exception, can you?) been offered by
manufacturers' who were having quality problems and needed a marketing
ploy to overcome that.
Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here.
All logos and trade names are the property of their respective owners.