
09-23-2022, 02:03 PM
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Ultimate Warrior
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Join Date: Sep 2005
Location: San Diego, California
Posts: 1,265
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pro-rata warranty
Quote:
Originally Posted by The Champ
Most of the industry made the change to eliminate the pro-rata warranty before I left the business (ACDelco territory manager) back in 2018. I think ACD made the change around 2015.
Why? Because most consumers thought (incorrectly) that a 5 year warranty was full replacement, not pro-rata. Interstate batteries was sued over the pro-rata warranty over 10 years ago.
"With each battery it sells, Interstate provides a “Limited Warranty,” which entitles Interstate customers to purchase a replacement battery at a prorated charge based upon the number of months the original battery lasted. Other retailers use the suggested retail price (or the price the consumer paid) as the price to be prorated. Interstate, however, calculates the monthly credit based upon an inflated “List Price,” which is not mentioned in Interstate’s Warranty, is about 20 percent higher than Interstate’s suggested retail price, and is even higher still than the price at which the batteries are typically sold."
In most cases, once you enter the pro-rata portion of the warranty (usually 12 - 18 months), the consumer really didn't receive much value.
ACD batteries have full replacement warranties ranging from 24 - 42 months, depending on the battery purchased.
To me, the longer full replacement warranty is more consumer friendly and much easier to understand.
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Pro-rate on a battery does nothing but anger the customer because they think when they plop it down on the counter that they are walking out with a free battery. Nope. I have yet to see a pro-rate over $50.00 New batteries are now around $200. for a 3 year free replacement. I do like AGM batteries and anybody who has had to replace a battery tray or inner fender should too. Most batteries are only going to last 3-4 years maybe a little longer if you keep them clean and charged. Optimas are NOT what they used to be. I see them failing around 3-4 years, I've warrantied some that tested bad at a year old. The AC Delco ones we sell only have an 18 month warranty.
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“Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan Press On! has solved and always will solve the problems of the human race.”
― Calvin Coolidge
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