Watch out for those "Lifetime Warranties"

The following is an article pertaining to "lifetime warranties". As a dealer, we were approached a year ago by a company that offered such a warranty for vehicles. When they completed their presentation, they spoke about what a great "marketing tool" it was and, "how much more money we can make by offering it". But, frankly, it concerned me. The company that was offering the warranty was barely 3 years old. Additionally, the claimed to be "backed by" an insurance company. Unfortunately, when researched by our lawyers, it was determined that the insurance was "precarious" to say the least. We have prided ourselves in offering at least $1.00 of value for every $1.00 a customer is charged. This model, as well as our ongoing model of working to always "exceed a customers expectations", precluded me from thinking about such a warranty. After all, it is not the sale I am concerned about...It is when the customer approaches us with a problem many miles down the road. A little research will evidence many warranty companies that have gone out of business - taking the promise of a warranty - as well as the customer's money - down the drain. We are in this business for the long haul. We pride ourselves on our A+ BBB Rating. We pride ourselves on our AAA Approval for service and we pride ourselves on over 10 years of customer satisfaction awards in both sales and service.

Ultimately, we found in our research that most companies that do offer some sort of lifetime warranty are not exemplary corporate citizens and have failing customer satisfaction grades, or BBB reports. They chose to offer this warranty to compensate for failures in their own operations. Not the ones, such as Sears, or LL Bean, but the many others along the way.

Now, this is my opinion only, but, I would encourage you to research this point.

At long last, here is the article:

Lifetime Warranties Not Always A Guarantee
Consumers Urged To Read Fine Print Carefully

Posted: 8:20 pm CST February 5, 2010

MADISON, Wis. -- Many people might think a lifetime warranty will protect against product failure as long as they live, but there are some gray areas when it comes to certain warranties.

There is no single legal definition of "lifetime warranty," and that could cause issues for consumers trying to collect on the promise.

When Don Roane's Craftsman ratchet broke, the Sears clerk made good on its lifetime warranty.

"He went and got me a replacement without any question," Roane said.

But that's not always the case, according to Consumer Reports.

Nicole Van Scoten and her fiancé said when they bought their used car, the limited lifetime warranty was the deciding factor. Six months later the transmission blew, but their $7,000 claim was denied.

"We were really angry that they would not honor this warranty," Van Scoten said.

The warranty lists many things that are not covered, including, "damage or failures resulting … from … alteration."

The original owner had made some changes to the car. But the couple said the sales team assured them those changes wouldn't affect the warranty -- something the dealership denies.

"You should never depend on spoken assurances. You have to read that fine print carefully. And don't assume that lifetime necessarily means your lifetime; it may simply mean the expected lifetime of the product," said Greg Daugherty, Consumer Reports money advisor.

And when a warranty says "limited lifetime warranty," it means limited. A piece of furniture, for instance, might be under warranty only for the original purchaser, so the warranty would be void if the furniture is resold.

As for paint, many carry a limited lifetime warranty, but only for the paint itself -- not the much bigger cost of repainting.

One treadmill model has a frame and motor that are covered under a limited lifetime warranty, too. But if a repair is needed, the warranty "does not include … freight charges," and that can get expensive.

The key is to read any lifetime warranty carefully and get oral assurances in writing -- something Van Scoten and her fiancé learned the hard way.

For more information on possible warranty issues, people can check out the Web site consumerist.org, which gets a lot of complaints from consumers about lifetime warranties and follows up on them.