Warranties are fantastic tools, both for companies and consumers alike. It gives customers some peace of mind that the vehicle they buy — one of the largest purchases one can make — won’t fall apart the moment it leaves the lot. It’s essentially a pledge from the company that says “we can guarantee your vehicle for this amount of time and this many miles” before any repair costs — on the fault of the car — fall on the driver.
However, not all warranties are equal. In the auto industry, companies like Hyundai and Kia offer some of the best in the biz, as they cover their vehicles for 10 years and/or 100,000 miles, whichever comes first. That’s pretty strong, and for people who don’t appreciate investing more money in their vehicles throughout its lifetime (which, let’s be honest, is just about everyone), that’s a pretty appealing selling point. Chrysler offers a Lifetime powertrain plan that has no cap for years or mileage, but it’s only applicable to the first owner of the car, among other caveats.
However, the kind of mileage-limited warranties can play to a disadvantage for those who rely on their vehicles considerably. The average American driver will log about 15,000 t0 20,000 miles on their vehicles every year, but some travel considerably more than that. If a person who drives for a living logs as much as 50,000 miles in a year, that 100,000 mile warranty will be meaningless in just two years, making the 10-year aspect completely irrelevant. For these kinds of people, Tesla Motors (NASDAQ:TSLA) has extended a helping hand.
No stranger to shaking things in the auto industry up, Tesla has decided that — given the largely experimental nature of its product and sector within the auto world overall — it will give more leeway to the consumer, in order to boost confidence for potential buyers. On Tesla’s 85 kWh battery equipped models, Tesla will now offer an eight year, unlimited (or infinite, as Tesla says) mile warranty for its lithium ion pack, over the four-year and 50,000 mile warranty that covered it previously. Essentially, Tesla drivers can drive as much as they’d like in eight years with no concerns about voiding the warranty. But it gets better.