The Koreans Are Coming

[markjay]

Not exactly breaking news, I know...

Just bought a 'nearly-new' Kia, which has the 7-year warranty.

It comprises of 3-years 'standard' warranty with unlimited mileage, and then 4-years of extended warranty with a 100,000 miles limit.

Kia Motors confirmed the following:

If a service is carried-out late (3 months late in my particular case), this will not automatically invalidate the warranty, instead it will only affect any claims regarding faults that can be directly attributed to the late service - e.g. failed turbo charger on Diesel engines due to dirty oil etc.

The car can be serviced at any VAT-Registered garage as long as original Kia parts are used - and this is the case for the entire seven years, i.e. both the standard warranty (which is common across manufacturers anyway) and the extended warranty (where other manufacturers usually insist on dealer-only servicing as a warranty condition).

MB - take notice.

 

[Ted]

My rather radical suggestion is that if 'budget' companies such as Kia/Hyundai/Toyota can offer 7 or 5 year warranties, then 'Premium' marques should show their confidence in their product and commitment to their customers by offering a TEN year warranty.

That should get the buyers through the doors

Oh, and my experience of a Kia warranty claim was that after the winter I had a little milkiness on my two front alloys (diamond turned). Not really visible unless it was pointed out.

Kia replaced all four without question.

 

[grober]

My rather radical suggestion is that if 'budget' companies such as Kia/Hyundai/Toyota can offer 7 or 5 year warranties, then 'Premium' marques should show their confidence in their product and commitment to their customers by offering a TEN year warranty.

That should get the buyers through the doors

Oh, and my experience of a Kia warranty claim was that after the winter I had a little milkiness on my two front alloys (diamond turned). Not really visible unless it was pointed out.

Kia replaced all four without question.

To deliver that would perhaps entail a fairly fundamental change in premium marque design philosophy to simpler lighter stronger faster away from today's increasingly weighty complex highly stressed designs.

 

[NISFAN]

So you would like premium brands to add 10-15% to sales price and offer a longer warranty?

How do you see that working when new car buyers usually buy every 2-3 years, therefore not personally able to action the extended warranty themselves?

Sure they will retain some of that extra spend in resale value, but overall they will be funding some of it for nothing.

 

[Teflonso]

Free lifetime warranty with Vauxhall, similar conditions to Kia.

It won't affect the premium manufacturers. A large proportion of the buyers are company/lease and don't give two hoots about the car falling apart after the end of the warranty.

Also, with the high cost of repairs to fancy extras (like the dynamic multi-function seats I have on order), firms like MB aren't going to be entusiastic about paying for replacements once the 3 years is up.

Two thoughts though. Firstly, at the bottom end of the range it might draw private buyers away from A Class/1 Series/etc. and will certainly make them think if they've just had a big repair bill on a 4 year old. Secondly, it's going to be an impact on Ford and especially VW. Thinking back to the 80s advert, now everything IS as reliable as a Volkswagen.

 

[Ted]

So you would like premium brands to add 10-15% to sales price and offer a longer warranty?

Nope. As a premium product I would expect longer life and better reliability to come as standard. I am not naïve enough to think it won't cost, but surely not 10-15%. Even at that it would still be cheaper that Extended warranty.

How do you see that working when new car buyers usually buy every 2-3 years, therefore not personally able to action the extended warranty themselves?

A very fair point.

This isn't just about Mercedes. It also requires a step change in the way that manufacturers perceive their own products. Could you imagine, for example if Jaguar increased their warranty to ten years? Or seven? or even five? It would certainly make up the mind of a large number of people who are uncertain of which marque to go for.

I've use this argument before, and I think it still stands.
I buy a KIA (arguably a good quality product) and you buy a <insert 'quality' manufacturer here>.
After three years, your warranty has expired. You buy a new <insert 'quality' manufacturer here>. The KIA still has four years to run.
Another three years and your warranty has expired on your second <insert 'quality' manufacturer here>. The KIA still has a year's warranty left.

I'm not saying for one minute that a KIA is a premium car, or that they give the feel good factor of a <insert 'quality' manufacturer here> but when I see the phrase "Die beste oder nichts" I have to wonder how serious they are.

And for the record - I love driving my Mercedes - I have loved them all. The KIA gives me (almost) everything I need in a car. The Mercedes gives me (almost) everything I want.

 

[wemorgan]

Hyundai/Kia have this market segment nailed. They know what customers want and deliver in aces.

 

[Teflonso]

So you would like premium brands to add 10-15% to sales price and offer a longer warranty?

.............

I don't see the link between a longer warranty and 10-15% on the price. You can buy a Vauxhall for two lollypop sticks and a Des O'Connor record. They're not exactly bleeding you dry for the price of a Kia.

A premium car is expensive already. Surely, it can't all be badge value, some of it must be reflected in better quality parts. If anyone could offer longer warranties without a big hit to profits, it must be the premium manufacturers, not the tin box merchants.

 

[markjay]

The Kia is not a premium product by any stretch of the imagination, if you are looking for a silky-smooth ride and well-appointed cabin then look elsewhere.

However... it is not trying to be. The Soul is basic and funky and easy to fall in love with, perhaps in the same way that cars like the original Mini or the first Fiat Panda were truly loveable cars through their simplicity and without ever pretending to be what they are not.

Kia are cleverly not trying to take the bull by the horns and are not courting Mercedes and BMW buyers like most other manufacturers.

I remember the days when Samsung stood for cheap Korean rubbish for those who could not even afford to buy the then-cheap Taiwanese rubbish... and look where Samsung are today as a brand.

Kia are definitely going the same way.

Now let's just hope that the Northies don't nuke them...

 

[markjay]

...I do see the point however regarding lease cars - their value at the end of the lease period will only be marginally higher due to the remaining warranty, but at the same time I would say that the 7 years warranty is not the only reason to buy a Kia, it is just another reason to buy what is already a very attractive package anyway.

 

[John Jones Jr]

The beauty about the likes of Kia's seven year warranty is (besides the actual warranty benefits itself), it clearly invites the customer to use and call on the main dealer with an old car, making both the customer & the dealership 'winners'. And if I had my way the good woman would be driving a new Korean now.

 

[bpsorrel]

While I was away in Hayling Island these last two days there was a new, black Hyundai i40 estate parked in the adjacent hotel space to us. Even when compared to the almost outrageously nice styling of the SLK, the i40 looked good, even SWMBO admiring it's sculptured lines.

I have to say, this car is something to think about when time to change the Toyota....

 

[grober]

So far Kia/ Hyundai have only made half hearted efforts in the mid size / small exec market. It's probably only a matter of time?? 2014 Kia Cadenza: Detroit 2013 Photo Gallery - Autoblog
How about 3.3-liter direct-injection V6 putting out 293 horsepower and 255 pound-feet of torque, mated to a six-speed automatic transmission a sport-tuned suspension with MacPherson struts up front and a multi-link rear configuration, matched with either 18- or 19-inch alloy wheels.
A driver-focused cockpit with a seven-inch TFT color touchscreen display. Premium options include things like Nappa leather seats, a panoramic sunroof, HID headlamps with active lighting, heated seats and a heated steering wheel. All for a projected price of $33,145 in the USA = £22,156

 

[Dieselman]

It's presumably due to the warranties, that I see Kia and Hyundai cars every day. The new models look pretty sharp, too.

 

[bpsorrel]

In Russia the latest Hyundai Sonata is very popular. despite a high price! Even 2011's are selling for over £20K!

http://noviy-urengoy.drom.ru/hyundai/sonata/10362621.html

 

[Colin_b]

Hyundai/Kia have this market segment nailed. They know what customers want and deliver in aces.

They do have some competition from Dacia. Entry level, £6850 including 7 year warranty.

Keep the car 7 year, sell it for £500. £17.45 a week + maintenance, tax, insurance and fuel.

Cheap motoring.

 

[redbaron]

These long warranties only really become value if they up the mileage limit to something above 120k probably 150k.

Then fleet managers will take notice - there is a lot of pressure to move to 48mth leases but the last line of resistance is that the 3rd year will be out of warranty with all makes as most fleet vehicles do higher mileages. If you are doing 30k per annum even the koreans are out of warranty at the end of q1 of the 4th year... leaving 9months of big bills (potentially).

 

[WindyH]

While I was away in Hayling Island these last two days there was a new, black Hyundai i40 estate parked in the adjacent hotel space to us. Even when compared to the almost outrageously nice styling of the SLK, the i40 looked good, even SWMBO admiring it's sculptured lines.

I have to say, this car is something to think about when time to change the Toyota....

Just spent a fortnights holiday in France driving 1100km in a Hyundai i40 saloon. I didn't choose it, just requested an 'intermediate' sized rental car. It was surprising good in all respects and ableit one or two minor niggles, very hard to fault. Touch screen nav with reverse camera, keyless locking/start, etc., only thing missing was leather! And a UK price of £23k.
Designed in Germany, according to the website. The premium German brands will have to rely more so on badge snobbery to survive I think!

 

[markjay]

These long warranties only really become value if they up the mileage limit to something above 120k probably 150k.

Then fleet managers will take notice - there is a lot of pressure to move to 48mth leases but the last line of resistance is that the 3rd year will be out of warranty with all makes as most fleet vehicles do higher mileages. If you are doing 30k per annum even the koreans are out of warranty at the end of q1 of the 4th year... leaving 9months of big bills (potentially).

Kia's warranty is unlimited mileage for the first 3 years (taxis / hire cars excluded), after that there's a 100,000 miles limit overall (i.e. from new), which for most private buyers is more than enough.

So even if you do exceed the 100k limit, you will still be covered at the very least for three years, which is not bad at all.

 

[markjay]

Free lifetime warranty with Vauxhall, similar conditions to Kia...

There are some differences but the main one is that Vauxhall's warranty is not transferrable to the second owner.

This means that, unlike Kia, it does not help the car's resale value.