Volkswagen Offers ‘People First Warranty’ – MediaPost Communications

Posted: Monday, October 02, 2017

Volkswagen is backing up its
vehicles with a six-year or 72,000-mile “bumper-to-bumper” limited warranty starting with the 2018 model year. 

The fully transferable warranty is intended to communicate to
consumers that the automaker stands behind its quality and workmanship.

First introduced for the all-new 2018 Atlas and Tiguan, the People First Warranty now covers additional 2018 VW models:
Beetle, Beetle Convertible, Golf, Golf Alltrack, Golf GTI, Golf R, and Golf SportWagen, Jetta and Passat.

“Volkswagen has begun to grow again in America, and buyers have welcomed the
Atlas and Tiguan into their homes,” said Derrick Hatami, executive vice president, sales and marketing for Volkswagen of America, in a release. “Expanding this warranty beyond those two
models gives our dealers another compelling argument for the rest of our lineup, and we believe it will lead to a reduced overall cost of ownership for buyers.”

Most mainstream
competitors to the Volkswagen brand in the United States such as Honda, Toyota and Ford offer only a three-year/36,000 mile basic warranty and a five-year/60,000 mile powertrain warranty on their cars
and SUVs. While Hyundai and Kia offer a five-year/60,000 mile basic warranty and a higher time and mileage limit on their powertrain limited warranties, if the vehicle is sold to a second owner, the
powertrain limited warranty is not transferable beyond five years or 60,000 miles from the date it was first sold new.

While the warranty is intended to instill confidence in the brand’s
products after the diesel scandal, it also helps address new-car affordability, says Michelle Krebs, executive analyst for Autotrader.

“To keep monthly payments down, consumers are
stretching auto loan terms,” Krebs says. “The Volkswagen warranty extends along with those loans to help save the first—and even second buyer of a VW—repair costs.”

The warranty demonstrates the company’s commitment to its owners and its products, adds Rebecca Lindland, executive analyst for Kelley Blue Book.

“Warranties are like insurance
— it’s great to have it, but ideally you never need to use,” Lindland says. “Warranties can be very effective selling point, but only if the product resonates with the American
buyer.”

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