Smart Car of America Forum banner

co statements on smarts stupid (?) 2 yr warranty?

4K views 23 replies 14 participants last post by  JRyan 
#1 · (Edited)
wonder 'why' a short, untypical 2 year warranty was assigned, to an all new, unproven, unknown usa vehicle and model, that essentially has no experienced 'smart' repair specialist professionals or do-it-yourselfers in the usa.
 
#2 ·
Mr Cash, this is verbatim (at least as close as my dictation skills allow) what Dave Schembri had to say in his interview with Autonetwork.com. Dates from the US launch last month:
"(the warranty on this car is) 2/24 bumber-to-bumper. You know, we wanted to keep the value proposition of this car really as just a tremendous value to the customer. To do that, we could have had the longest warranty, could have a lifetime warranty, but eventually that cost gets into the price of the car. We wanted to allow, like everything with this car, the customer to customize their own warranty and service package. So our base warranty is 2/24, service intervals are 10,000, and a customer will be able to go into a dealership and if the customer wants 3/36 bumper-to-bumper with full maintenance, we can add that on to their purchase, 4/50, whatever that is, we'll have a smart branded product that the customer can customize."​
I'm sure the interview has been posted before, but here's the link:

http://www.youtube.com/watch?v=Cbme19jvows
 
#4 ·
QUOTE=Dave Schembri
"(the warranty on this car is) 2/24 bumber-to-bumper. You know, we wanted to keep the value proposition of this car really as just a tremendous value to the customer. To do that, we could have had the longest warranty, could have a lifetime warranty, but eventually that cost gets into the price of the car. We wanted to allow, like everything with this car, the customer to customize their own warranty and service package.

Let me customize with a turbo, a diesel, or an electric. Customizing with a warranty period that should be standard equipment is a crock.
 
#7 ·
I am perfectly happy with 2 years. That gives me a no risk period chance to own the car. If it needs a lot of warranty work, it will be gone at the end of the 2 years. If not I'll keep it and use the money saved to get maintenance done locally. Much more convenient then driving 2.5 hours to the dealer.
 
#12 ·
I'm good with 2/24. I might buy another year for a hundred bucks or so. but two years is usually enough to weed out any warranty covered issues anyway.

Are oil/filter changes a big deal? I was thinking I could just drive it up on the kitchen table, take out the leaf and do it myself. :)

The big problem I see here is that this is going to put a major wad in quite a few panties. Bad PR move.

Also, since I am financing this, I'd rather have the 3 year coverage tucked into the MSRP because that's all my bank is going to loan me. That would let me use my cash for foglights and suchwhat.
 
#14 ·
jwright

You (I think) keep mentioning a lease.... you know something we don't?

All I have seen is a fixed MSRP promise and little else

RE: My thoughts on the 2/24 Warranty

The Shembri comment about customization and warranty costs getting into the bottom line is a crock IMO..... MB is the manufacturer.....PAG is just the importer-----The warranty costs are amortized against ALL 451s produced, not just the USA's 16~22 thousand

In an environment where EVERY major auto producer selling new cars and trucks in America has greater then 2/24 and the majority over 5/75, I say this is a bonehead move (No! I am not stepping out of line, yet...I want to see the rest of the story)

I suppose they could spin it back into reasonable if they would at least release the warranty OPTIONS and pricing.... I think "extending" a FACTORY WARRANTY for an extra $75~$150 would not tick too many off...

But having to BUY an Extended Service Plan for $500 or more will not go over well....

First year car
New fangled auto manual trany mated to new version Mitsubishi motor
New fangled electronics
History of MB reliability
History of transmission problems
Experience of many older car owners that most high dollar things always crap out just as warranty expires

Nissan, Honda, and Toyota RELIABILITY are the ONLY reason the American Big Three got off their asses and produced better trucks and cars this last thirty years.... Today Ford Chevy and Dodge offer insane warranty lengths to gain back some market share and try to slow the red ink bleed.

3/36 warranty would not have phased me one bit far a Smart in the Price range.... but the more I think about it the more I am amazed at a 2/24..... plain dumb in my opinion..... and for long term viability of the Brand Roger Pensky needs to re-think ticking off many old farts like us.... we vote with our wallets and OUR MOUTHS.....

OK I will go take my meds now... :cool:
 
#15 ·
Mini Warrenty and Service Experience

I currently drive a 2004 Mini Cooper S. I leased it new and the 4 year lease will be up the end of this December. It came with a 4 year/48,000 mile bumper to bumper warrenty and three years of free maintenance scheduled once per year or every 10,000 miles. The car has 32,000 miles on it.

I have had two warrenty repairs. The first was at about two years and was for worn out window motors. It was fixed under warrenty in about two hours. The second was last month and the only indication of a problem was the airbag idiot light coming on. Turns out there was a leak in the seal around the hatchback that allowed water in which settled in the batery compartment 4 inches deep and carroded the primary electrical cables of the car.

It took three days to replace the seals, and replace the two main cables one of which runs under the car and the second which runs along the floor of the inside of the car. To replace the cables they had to remove the dash, all the seats and all of the carpet. I am very satisfied with the service, the repair, and the treatment I recieved but the labor charges alone if the work had not been under warrenty would have been over $1600. Thank God it was warrented for 4 years.

I also had my first for pay service done last month. It was a routine 10,000 mile service and the cost to me was $309.

Based on this experience I will likely choose to extend my warrenty and prepurchase service on my Smart but I understand why others of you may not.
 
#16 ·
jwright

You (I think) keep mentioning a lease.... you know something we don't?


Fred,

Not for sure, but since one can lease every other car sold here I can't imagine we won't be able to lease a smart. Could be wrong of course but I'm betting on the lease option. :)
 
#17 ·
...Not for sure, but since one can lease every other car sold here I can't imagine we won't be able to lease a smart. Could be wrong of course but I'm betting on the lease option. :)
I've leased vehicles in the past, and although most of them were done through the manufacturer's own finance arm, some were leased through third parties (major financial institutions).

So bottom line, even if smart USA doesn't have it's own lease program (I expect it will), there will be other options for leasing a smart anyway.

The only wrench in the works at this point is that residuals are unknown, with smart being a new brand. I would guess that leasing, at least through third parties, might be a little more expensive as a result.
 
#24 · (Edited)
I agree with Mr. Cash, while the current fad may create a temporary behavior of "I want it no matter how long the warranty is" for some. Once the honeymoon is over, reality will sink in and the 2 year warranty may no longer be a small deal.

Even for those who trade in 2 years, cars without warranty will have a big impact on resale value. Whether you pay cash for it, finance it, or lease it, the resale value will hit you one way or another. In general, you never want a lease term longer than the warranty period. That's why manufacturers moved away from 24 month warranty starting 20 years ago.

With a 13 second 0-60 time, the engine, transmission, and drivetrain in the smart will have to work A LOT harder to keep up with the traffic, no matter you are on the city street accelerating from light to light, or merging on the freeway. The odd is we will end up flooring it a lot to keep up with the normal flow, unless you just enjoy others cutting you off. Because of how it will be driven, a 2 year warranty scares me. I personally think the Turbo should have been the starting model in the U.S., or at least as an option, given how we drive over here. I don't remember seeing a 13 sec 0-60 car in the recent history. Nor can I remember a 13 sec car loved by many people. Once you know all Yellow cabs, minivans, SUV, pickup trucks, UPS trucks, etc... accelerate faster, and it is a challenge to overtake the city bus, garbage truck, or landscaping truck with a trailer, impressing your passenger may require a steep downhill street in SF.

A long warranty mitigate the repair risk for owners, while giving the brand an image of reliability. That's how the Korean car companies penetrate the U.S. market. If smart only offers a 2-year warranty, one may question "they must know something we don't, if this thing is so reliable, it shouldn't cost them much more to offer a 4 or 5 year warranty"

So a logical conclusion is either smart knows the car is troublesome beyond two years during its durability test, or the risk for warranty claim is high enough that the manufacturer does not want to assume the liability. It is bad news no matter how we look at it.

Offering a 24 month warranty to cut cost is the biggest joke in the industry, the Koreans set the warranty benchmark and are pushing everyone to move up to compete. Their car is more powerful, and cost just as much as the smart, and most have a 10 year powertrain warranty. So I don't buy the story that smart is cutting the warranty to make the price competitive. If the thing is well build, the cost for a longer warranty should not be an issue for smart.

Besides, let's say the cost for a 4 or 5 year warranty is $500 higher than the current price. You think smart buyer will consider buying other brands? I think most buyer wants a smart because it is a fad, easy to park,or because it is a smart. If they would start shopping Kia, Hyundai, Toyota and Honda as alternatives because the smart is $500 more, I doubt they will ever consider a smart to begin with.

Let's stop making excuse for smart for offering a 24 month warranty, I am sure they have plenty of excuse for it already.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top