I posed this question to salesmen at Toyota and Honda when we were looking at SUV's years ago. They tried to flex the reliability reputation and all that. I showed them class action law suits and various common complaints on their new models, and that seemed to change the conversation direction.
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Manufacturers of all product types know when failures begin to occur and become expensive. Which then guides the length of the warranty offered on that specific product.
Car manufacturers (not just Volvo), have been inundated with oil consumption issues over the last 5-10 years. Some resulting in class action lawsuits. From my own foray into the oil consumption crowd, the repair was around $5000 on its own accord. Nothing to bulk at, and an amount that can become cost prohibitive if too many people join the group. Volvo and other car manufacturers, being in business to make money, have tailored down their warranties. Limiting exposure to potential costly repairs. Evidenced by the exclusionary language in all Volvo VIP / CPO Extensions that specifically prohibit consumption claims without a failure.
Looking at the chart below gives you some indication of how shorter warranties benefit car manufacturers. While Volvo offers 5 years / unlimited miles, two things become evident. The same applies to other manufacturers, too
1. Few people will ever see the full 5 years, because Demo / Loaner CPO's have an "in service date" which means the car has some level of usage. Be it a month or a year.
2. Being generous and assuming everyone buying a car is a male driving the upper cusp of 18,858 miles a year. 5 x 18858 miles - 94,209 miles.
We know this to not be the case. Using the bell curve and numbers below, MOST PEOPLE will be far less than the 94,209 over the life of the CPO. Assuming a full 5 years (which is unlikely). You will have a segment that does reach 94,209 miles, albeit a smaller segment. And of course, you'll have an outlier group that drives the hell out of their cars and puts 100s of thousands of miles.
Back to your point on Toyota and Honda (Both Having been Party to Oil Consumption Class Actions).
1. Honda: -
Honda Accord Oil Consumption Lawsuit
2. Toyota -
Toyota Oil Consumption Defect Lawsuit - Car Attorney
All manufacturers have run the numbers. Profits drive companies bottom line. When changes are made to reduce warranties, it's because they have found longer ones
are far more expensive!
Average Miles per Year by Sex and Age Group
According to the US Department of Transportation (DOT), men on average drive 550 miles a month more than women. The most recent
DOT statistics show men of all ages driving an average of 1,400 miles per month, and women driving an average of 850 miles per month.
The difference in miles driven by males and females cuts across all age groups; (all numbers below are averages):
- Ages 16-19: males drive 8,206 miles; females drive 6,873 miles.
- Ages 20-34: males drive 17,975 miles; females drive 12,004 miles.
- Ages 35-54: males drive 18,858 miles; females drive 11,464 miles.
- Ages 55-64: males drive 15,859 miles; females drive 7,780 miles.
- Ages 65+: males drive 10,304 miles; females drive 4,785 miles.