Friday, July 15, 2016

Dealership Offers No Cost Lifetime Warranty

The previous post discussed how car dealerships are changing the way they do business. Rather than relying on obscure phrasing and the limited knowledge possessed by the average customer, they are now working on creating truly amazing and compelling offers that would be hard for anyone to refuse. 

Traditionally, standard car warranties usually cover 5 years/60,000 miles on the vehicle's powertrain. The powertrain is basically a system of parts that provides the car's power. It's components include:

  • driveshaft
  • transmission
  • engine
  • general category of internal workings (e.g. engine block, cylinder heads, internally lubricated parts, drive axles)
Power is generated by the engine. It is then transmitted to the driveshaft by way of the transmission. 

Thus under a powertrain warranty, the dealership or manufacturer covers the cost of repairing the powertrain (including parts, labor and fluids), in the event of mechanical problems. 

But now, the powertrain warranties are being redefined well beyond the 5 year, 60,000 mile limit. 

Momentum Toyota Offers Lifetime Warranty

Momentum Toyota in Fairfield, CA is an example of a dealership that is offering a lifetime warranty. Here is their homepage banner, which has the words, "Lifetime warranty at no cost as long as you own your car."

By the way, if you check out their site,  you will find that they carry a very impressive selection of new Toyota cars as well as pre-owned vehicles.  And in contrast to the old days of having to view their inventory in person by driving down to the physical location of the dealership, the new trend is to post inventory items on the site itself and to have relevant information on hand, such as VIN number, pricing, engine and transmission type and more. This is surely a far more convenient car shopping approach for the average person, interested in buying a Toyota Avalon, or other vehicle of their choice. 

What are the Terms?

Generally, lifetime powertrain warranties have no restrictions on mileage or years driven. And they promise no additional charge should a problem arise. However, this is contingent on the vehicle being a newer model, purchased at less than 5000 miles, and an adherence to scheduled maintenance recommendations. The owner is also responsible for keeping the documentation for their maintenance visits. 

Why Are Car Dealers Able to Offer Lifetime Warranties? 

Newer cars are being made to last. It is not uncommon to find that these vehicles can be driven for up to 200,000 miles or even more. Therefore, in this day and age, it is extremely unlikely that major powertrain issues can develop with these remarkable standards in place.

Furthermore, car dealerships make it possible to have these types of warranties by partnering with companies that specialize in warranty services (e.g. Fidelity Warranty Services)


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