Warranty Considerations
- Thread starter CRobin
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Okay so I think that’s competitive. Better than 3/36k that we got on the Supra.
Honestly this is part of the reason I’m going BEV. No engine to deal with. A lot less moving parts.
Everyone buying Scouts for the first couple of years is taking a huge risk not knowing how these cars will hold up over time, a beefy warranty is the only way to ease those concerns.
Scout needs to at least match Rivian's warranty full stop. Anything less says the calculus on durability is sub-Rivian which is no bueno.
Warranty should be more than adequate. I just hope that they stand behind it if they offer it and don’t make excuses or try to deny because you took it off road on a gravel path one given time. I heard some issues with the Broncos early on. It’s one thing to go boulder bashing and break something and be denied (within reason) but whole other issue if they fight minor issues. The issue was Bronco advertised trail capable, etc… then people ran them hard, broke and or found fail points then argued it should be covered. And I can see both sides of the sword. If you market highly capable then honor it but guess you also need a comprehensive list of what you can and can’t do within the confines of the warranty program being valid/invalid?
Indeed. I had a warranty voided on a Ranger for hitting the rev/speed limiter. The computer didn't differentiate on whether is was the 85mph speed limiter or redline that was hit... Illegal as hell to void it, but there's never been another Ford in my garage since, nor will there be.
A 3/36k and a (currently required minimum) 8/100k warranty is enough for me. I don’t need the price of the vehicle to increase just to expand the warranty. If someone wants to waste their money on a longer warranty, they’re welcome to do that, but a standard warranty is more than sufficient for my needs, which include using the Terra as a working truck on a ranch and occasional 4x4 trail travel to camping.
I'd be satisfied with that. Totally. @Chuckles Thanks for digging this up and letting us know about it!
I did post somewhere else that the reality is that it wouldn’t cost Scout anything (or much) to have a 150k mile warranty on their battery/drivetrain for the BEV. I still think that’s true. But I wouldn’t want to pay for that in extra cost of the vehicle at purchase.
It's not just about confidence. There are very real accounting aspects to warranties. The company must hold significant amounts of cash in escrow to pay those future warranty claims. They could be an issue for a new company needing cashflow.
I can tell you as a Tesla customer since 2010, in the early days, even thought they had a fairly short warranty period, Tesla did a decent amount of "goodwill" repairs for people. That way they didn't have to escrow a lot of cash and could just write off the repair cost on a case-by-case basis. Not saying Scout should do that, just saying there is a middle path here.
That's interesting and makes sense, but at the end of the day they still have to compete against the likes of Rivian/etc. so hopefully they can compete on that front as well.
I’d be curious on the numbers side how much $$$ per vehicle is set aside for warranty work. It’s certainly a contingency but always wondered if it’s $20 per vehicle,$50,$150? What is the average warranty cost for each vehicle produced?
There's a major ramp... From Gen 1 to Gen 2 - especially for a new OEM. Luckily Scout has the backing of VW & Rivian's Zonal stuff to help flatten that curve.
Perhaps someone can go spelunking through Tesla and Rivian financials to try and tease that out. I just remember in the early-ish days of Tesla there was a brouhaha that Tesla was decreasing their warranty reserves in order to goose their financials by allowing them to immediately recognize more revenue on each car. People were worried that this would lead Tesla to deny more warranty claims. We have never been denied anything but we haven't had that much go wrong (and as I said before my wife's door handle is the only out of warranty thing that has broken).
Agreed. But it's a big jump from Rivian, Tesla, etc to Hyundai/Kia.
As a lifetime VW owner I can tell you having VW's backing for a first model year anything isn't exactly comforting.
I look at the cost as part warranty and part marketing expense. It's a way to incentivize customers to take a leap of faith and buy an unproven vehicle from an unproven company without risking unforeseen expenses due to failures down the road.
I am following what is accessible re: VW operations plummeting in Europe, and VW dealership lawsuits in US against Scout Motors; I happen to live in Texas which will aggressively hold a no direct purchase clause; but theres loopholes to take the keys over in other states such as CO; however, VW dealerships will pretty much say, "bless your heart" if you think you will be bringing a Scout to their dealership for warranty or service. So, perhaps Scout Motors is planning warranty at created Service Centers for big stuff, and Mobile Units for small stuff? That's a rumor right now. And I'm sure it gets messier, and changes week to week, as nego's travel down the pipelines. I remember similar nego's in my working life, bliss. Anyways, food for thought & I hope the businesses involved can reach an ethical and fair agreement.
Where will I be able to service a Scout® vehicle? | Scout Motors Help Center
As a lifetime VW owner I can tell you having VW's backing for a first model year anything isn't exactly comforting.
I wouldn't use any other manufacturer as a barometer for Scout's ability to back their product. We genuinely operate as our own company. The platform itself is brand new and not based on any existing VW platform.
Exactly, thanks for redirecting my post, I was looking for the Scout language. We were in the contractor end and built a couple 'Tesla service centers' when they were rolling out, so I've seen the model. Look forward to more info as plans continue.
Where will I be able to service a Scout® vehicle? | Scout Motors Help Center
Scout will be able to stand on the shoulders of Tesla, Rivian, Lucid, etc. They have all of this figured out. Oklahoma is also a no DTC state but instead of a "store" they have a "gallery" where you can check out the car, do a test drive, and then they have a computer set up where you can order your car from HQ, outside of Oklahoma. They have recently figured out a loophole to allow them to ship your car to the gallery although I recall some limitations based on financing method. Worst case you drive it home from Kansas City.
There are no legal limitations on service centers. Those will come to an area once they reach critical mass of owners. Prior to the Tesla Model 3/Y, Tesla covered Oklahoma and Western Arkansas with a single person. They would be in OKC for 2 days, Tulsa for 2 days, then NW Arkansas for a day, repeat.
No worries....
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