In the June 2009 issue of Engine Builder on page 30, I read some statistics the AAIA came up with that match our experience over the last 8 years of doing business. The statistics have to do with warranty claims on engines. Now, warranty claims are something that every company strives to avoid. They cost money and time to companies. At Low Mileage Engines, that’s not the main driving force behind avoiding warranties. We want to avoid them because we want our customers to have a fantastic experience with our company. What I was floored by was the way the statistics lined up with our experience that 3/4 of warranty claims on engines are actually customer installation or diagnostic problems. This is nationwide, and comes from statistics collected between 2008 and 2005. Here are the exact statistics with a citation (on page 3 of the PDF in bottom left).
Percentage of total rebuilt engine sales returned as warranty:
2008 | 2007 | 2006 | 2005
Returned 1.3% | 1.5% | 1.8% | 1.9%
Percentage of warranty returns which are actually customer installation or diagnostic problems
2008 | 2007 | 2006 | 2005
Returned 77.1% | 71.6% |72.8% | 73.2%
That’s right – Over the last for years, about 3/4 of all warranty claims on engine installations were not legitimate. Notice the incredibly small percentage of installations that had warranty issues industry wide – 2%. Then not the huge percentage that small percent that essentially weren’t real. This is why it is so important that a knowledgeable mechanic install a replacement engine. Notice that I didn’t say certified! Some of the best mechanics I know are certified. Likewise, some of the worst mechanics I know are certified! What’s important is that the mechanic installing your engine is either a pro or is in training with a pro who can check his work. You should never let anyone touch your vehicle that is learning on your dollar.
So why is this so important? In the rare case of us getting a warranty claim, we always want to make sure that the situation is diagnosed properly. Doing so can save customers time and money and lines right up with our goal of “A happy customer.” Remember, according to these statistics, more than 98% of engine replacements go without a hitch. Engine replacement is a smart thing to consider if your engine fails!
That’s all for today, thanks for stopping in!
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