Here is the warranty information as well as a good example on how our 5 years / 50,000 mile nationwide prorated warranty works:
• Anything within the first 12,000 miles or 12 months is covered 100%
• Once you hit 13 months, you owe the months or miles (whichever is greater) that you have already used in your warranty
If you are at 25,000 miles or 25 months – they would get a 50% discount.
After the repair, the customer retains the existing 5 years / 50,000 mile warranty on the labor and parts for the item(s) repaired under warranty. The customer wins because most places just give a 12 month / 12,000 miles or 24 month / 24,000 miles warranty, so they would have to pay the entire amount for the repair again.
We can typically get a parts credit for the bad part and likely also get a labor credit to cover our costs on the technician that makes the warranty repair. Worst case I am out a few dollars of tech labor and a part that I purchased at cost. I still make money and the customer is happy.
We use this benefit to negotiate price all the time, so there are many good ways to use this offering.