ElI5 How do car manufacturers offer powertrain warranties without losing money?

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ElI5 How do car manufacturers offer powertrain warranties without losing money?

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8 Answers

Anonymous 0 Comments

They trust their engineering enough so that they only really have to cover a tiny minority of defective powertrains while for the vast majority the warranty expires without ever being used. Secondly, they have a lot of stipulations about the coverage. Someone can’t just abuse the car, modify it, or generally do things that are detrimental to the car, and then go claim a warranty. It is voided under various circumstances which cuts down the number of people who can claim warranty even further. Lastly, repairing a powertrain costs a lot less to them than it does to you.

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