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New Warranty Policy For 2012
December 27, 2011 - M.T.H. Electric Trains will unveil a new one-year limited warranty policy beginning with all products delivered after January 1, 2012. The policy is similar in nature to one instituted by Lionel in the past year and should not affect most retailers who frequently turn over their inventory.

The new policy still includes one-year limited warranty coverage to any M.T.H. product purchased from an M.T.H. Authorized Retailer within one year of the original purchase date. However, coverage will only extend to those M.T.H. products produced within five years of the original purchase date. For example, a product produced in 2012 will only have one-year limited warranty coverage until 2017. Monthly coverage will be extended to that product into 2018 until the six-year anniversary of the product's monthly production delivery date passes.

M.T.H. Authorized Retailers are encouraged to continue employing in-store sales policies that ensure that your M.T.H. inventory will completely turn over within five years of an item's production date to avoid sales of items that only enjoy a portion of the one-year limited warranty coverage or, in other cases, no warranty coverage at all.

An item's specific production delivery date will be visible on the M.T.H. website whenever a visitor reviews an item's detail page allowing both the retailer and his or her customers to confirm the actual length of warranty coverage an item may still enjoy prior to the sale of that item. In the past, when an item has shipped, the shipping date field just listed the item as "SHIPPED". The detail page will now list the month and year the item was "Delivered".

For an example of what the production delivery date now looks like on the M.T.H. website, click Here.

Staple items like transformers, track switches or DCS systems include a production date code on those items or their packaging that reveal the production delivery time frame the item was released. M.T.H. Customer Service representatives can confirm the production delivery date timeframe for those items if the retailer or consumer is unable to discern the specific timeframe from the code. Retailers who practice first-in, first-out inventory policies will likely never run into warranty expiration issues with staple items from M.T.H.

To review the new warranty langauge, click Here.
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quote:
Originally posted by Trainman9:
quote:
I'll pass on the WARRANTY in favor of buying Scale Engines @ $.40 on the Dollar @ Maurer's and Stout's...you can't have it all. I like paying $400 at auction for the same stuff others shell out $1300 at their LHS Smile.


Well you might get MTH stuff at 50% off MSRP, that seems to be the going rate, but watch out for the GBoys, you know who I mean, they pay top dollar for Lionel stuff and are not usually outbid for items they want.



They are there to increase their inventory at prices lower than Lionel's, and to bid up other items to keep the MARKET PRICES at a high level, thus insuring that their inventory keeps its value. In essence, they insure the AUCTION HOUSE and CONSIGNOR a very HAPPY NEW YEAR!!! Not to argue about my post above, but I do have a $600 EM-1 and a $400 AC-9...a MTH Maryland Solarium Standard Gauge State Car for $35 BRAND NEW...though recent prices paid are higher than usual. Maybe, they see the Economy recovering in a few months. At a recent auction of 600 lots of MODERN, I bet they won WELL over half...but if you want an item for your collection, you can outbid them, and still get a good deal.
quote:
Originally posted by Allan Miller:
quote:
I never understood the comparison of automobiles to niche hobby manufacturing

I've never understood it either. An apples-to-oranges comparison if there ever was one.


It is about integrity or lack there of.

http://dictionary.reference.com/browse/integrity

Ford for example took care of the Firestone tire problem and did not leave the customer in the middle of a dispute between Ford and their supplier. MTH and Lionel are allowing unsuspecting customers to get screwed by buying an older NOS product assuming the manufacturer will stand behind it. Anything older than 5 years then on dealers shelves should be required to be stamped "AS IS,no warranty" to properly inform the customer. Anything high end I buy 3rd Rail. I know they will always do their best to do the right thing.

Dale H
IMHO, there's another issue.

When I got into O gauge a few years back, I decided I wanted to concentrate on New Haven and NYC items. That's worked out pretty well, but because manufacturers only produce certain lines in certain years, I had a hard time buying NH locos. Seems like MTH hasn't made a Railking NH steam engine in quite a while... I've had my first one on order for about a year and a half from MTH!

The production of only certain road names each year makes the model railroad business different from many other types of product-producing companies.

Thanks to stores like Sidetrack Hobbies, I was able to get a few models that were 4 or 5 years old, but brand-new, in the box. Seems like this new policy will have a big impact on stores like Sidetrack that are reputable dealers with great service AND carry older stock.

Ed
quote:
Originally posted by Dale H:
quote:
Originally posted by Allan Miller:
quote:
I never understood the comparison of automobiles to niche hobby manufacturing

I've never understood it either. An apples-to-oranges comparison if there ever was one.


It is about integrity or lack there of.

Dale H


wrong again, it is NOT about integrity, it is about BUSINESS.

I am amazed at the number of people who don't understand the basic concept that these companies (Lionel and MTH) are trying to run a profitable business. I have no problem with the warranty policies. Seems very fair.

Paul
quote:
Originally posted by Railrunnin:
quote:
Originally posted by Dale H:
quote:
Originally posted by Allan Miller:
quote:
I never understood the comparison of automobiles to niche hobby manufacturing

I've never understood it either. An apples-to-oranges comparison if there ever was one.


It is about integrity or lack there of.

Dale H


wrong again, it is NOT about integrity, it is about BUSINESS.

I am amazed at the number of people who don't understand the basic concept that these companies (Lionel and MTH) are trying to run a profitable business. I have no problem with the warranty policies. Seems very fair.

Paul


This is kind of the problem with modern society,integrity is lacking in business. Integrity and business are not mutually exclusive. Common folk get the shaft. Google John Corzine and Mf Global.

Dale H
Jim,

I agree with you. There should be indications on the packaging as to the build date to help consumers with the purchase.

However the poster above who continues to believe integrity should force Lionel and MTH to warranty the products for 10 or 20 years does not understand basic principles of BUSINESS.

I believe both Lionel and MTH are ethical companies with high degrees of integrity. Heck, Lionel even picked up the K-Line Collector Club and honored those terrific engines that were the last great fling of the KCC. I'm sure that cost them a pretty penny.

Some people just won't be happy until companies are run out of business for having to live up to unrealistic expectations.

How about people with NIB Postwar items? Should Lionel honor that warranty? I think not.

Paul
quote:
I find it laughable that folks expect a manufacturer's warranty on a 6 year old product even if it is new in the box. If you are going to buy a loco that old then make sure the dealer will warrant it somehow.


I agree- no wonder there are so many arguments on this board- many people just cannot understand the simple basics. It is NOT THAT TOUGH! Roll Eyes

You have to ask, "seriously"?
It is what it is, folks, and none of us are going to be able change things by gabbing about it. As is usually the case, the consumer ends up on the short end of things, but what's so new about that?

Those already in the hobby are--or should be--well aware of any potential warranty related (and other) pitfalls. The folks I feel most sorry for would be those who are just new to the world of model railroading and who are lured into buying new-old-stock items. There's plenty of that stuff still around so consumers, experienced or not, will need to exercise some genuine due diligence.

Consumers do have power, of course. Look at the very recent example with Verizon Wireless, or even the earlier NetFlix example. The wallet always speaks louder than any mouth or keyboard.
With Lionel and MTH having 20,000+ products produced over the last 100 years (30 years in MTH's case) I find it hard to expect them to warranty a product that is many generations old and tooling is not available or the technicians are no longer current with that product. Lionel and MTH are into the second generation of command control systems and with the cost of producing parts through the roof, (Not to mention the inventory depreciation costs associated with maintaining a huge parts inventory)they cannot be expected to warranty an item that is 5 years well past the date of manufacture.
I think it is prudent when you walk into a store that discounts very little and maintains an inventory that includes items over 8-10 years old that you be an educated consumer and ask about a significant discount or written statement of warranty or refund if the item goes bad in 1 year. I have conventional, proto 1, proto 2, and eventually proto 3 products. I fully expect that I will most likely need to upgrade a proto 2 item to proto 3 over time. The same thing with Original TMCC to legacy. We are a disposable consumer society. I find this hard to swallow, but the 32" 720p HDTV $800 Flat screen I purchased 5 years ago can be had for $279 with 1080p and wifi and other addons. I think we need to reluctantly look at our trains in much the same way unless we treat them with kid gloves and are prepared to maintain them the way one maintains a classic car. My 2 cents, not a criticism or disagreement with anyone else.
quote:
Originally posted by Allan Miller:
Well, there's always Bachmann and Williams by Bachmann (Lifetime Limited Warranty):


My one experience with the Williams "Lifetime Limited Warranty" was not good. I bought an older, NIB engine from Trainland and it had some stripped out threads in one of the power trucks (as well as a disconnected wire to one motor and a machine screw in the gear sump). One day I happened to be in Columbia, MD so I dropped by Williams to see what I could get. The guy I talked to there was totally unhelpful - he was distinctly unfriendly and seemed to think the problem was the screw, not the casting. I basically went away with nothing. I managed to fix it myself, but it left a pretty sour taste.
Southwest:

That would have been back before Bachmann bought Williams, however. The current warranty offered by WBB is a good one and I have had absolutely no problem the few times I have had to use it. Heck, I sent them an e-mail last week questioning the color on a Lehigh Valley GP9 I received for Christmas and they responded promptly and pointed out that the color was correct per their specs. They then offered to replace the Lehigh Valley shell with a shell with another road name if I was unhappy with the color on the LV unit.

Curt
quote:
My one experience with the Williams "Lifetime Limited Warranty" was not good.

Williams is no longer in Columbia, MD. It's Williams by Bachmann these days, and for the few that ever need Williams engines serviced (I've never needed that service), they have a pretty good track record with relatively few complaints here or elsewhere. Ditto for their Bachmann N, HO, On30, and Large Scale lines.
quote:
Originally posted by Allan Miller:
Williams is no longer in Columbia, MD. It's Williams by Bachmann these days, and for the few that ever need Williams engines serviced (I've never needed that service), they have a pretty good track record with relatively few complaints here or elsewhere. Ditto for their Bachmann N, HO, On30, and Large Scale lines.


Larry Harrington runs a good ship over there and with the backing of Bachmann they are very customer service oriented.
quote:
Originally posted by jd-train:
Seems that all of the companies will need to put a manufactured date on the outside of the box, so a customer will know when a product was actually made.

Jim


I agree. Unless you are both product specific knowledgeable and have access (via smart phone or the like) you would not know what warranty or dates apply to the product you are considering to purchase. This policy change by both Lionel & MTH is most likely directed at dealers that do not turn over (sell) their inventory or specialize in New Old Stock product. However, the reality is that a significant number of buyers (especially those new to the hobby) will get a rude awakening that they do not have a warranty for the product that they spent several hundred dollars. The warranty disclosure and manufactured/ship date should be put plainly on the outside of each box.

I guess the easiest label would be "caveat emptor"

There's a way to solve this, but the major retailers would have to step up. The retailers selling new old stock older than 3 years (Lionel) or 5 years(MTH) could agree to voluntarily put a new old stock sticker on the box and offer a three month warranty from the retailer. That would take care of dead out of the box issues. It would also be wise for the shop to take the item out of the box, lube it and demonstrate it to the customer, but the mass merchandisers simply wouldn't have the time to do that.

 

Yes, the retailers would have to sell at a higher price, but it would still be a lot less expensive than buying new for non-collectable items. There's always a trade-off.

 

If you are paying 50 cents on a dollar for a new item, you are already getting a bargain. Expecting an additional 5 years of warranty protection after buying an item that is new but has sat for 4-5 years at a time when the computer technology is moving so rapidly just isn't realistic. Buying any product that has sat on a shelf (at best) or been moved around for 4-5 years does entail additional risk for the buyer. That risk is reflected in the significantly lower price.

 

The manufacturers policies seem reasonable to me. They cannot control storage conditions, being brought to and from shows, being bounced around in cars, etc. As the years pass, the risks rise even for new in box merchandise.

 

Expecting to buy a new item for 50% off five years after it was manufactured, then expecting to get an additional five years of warranty coverage is asking to have your cake and eat it too. From a business standpoint, the risk for the manufacturer is too high, and the electronic parts may not even be available.

 

I like Williams: simple, reliable construction; interchangeable parts; good warranty that I don't really need.  In a way, it is the "new Marx" of toy trains.  I have purchased many NOS Williams engines and have had very few problems, although careful lubrication is a must.

 

In general, I believe that most warranty repairs are due to poor quality control and testing.  If a train importer sells a limited number of each production item, that is all the more reason to check each item in house carefully.

 

Each item should be tested before final packaging.  In the old days, most electronics items and appliances bore a "tested by" or "inspected by" label with name, number, or initials of the final inspector.

 

When a manufacturer issues a strong warranty, it means it trusts its own products enough to believe that warranty repairs will be infrequent.

 

Nowadays, quality control is deficient; and consumers are expected to take the place of post-assembly inspectors.  Manufacturers believe it is less costly to take returns and make repairs than it is to do real testing and hire good quality-control teams.

 

Unfortunately, this type of cost/benefit analysis makes many consumers lose faith in manufacturers.

 

MTH and Lionel could provide a limited warranty for NOS items by including the phrase "subject to availability of parts" and adding an additional service charge (as Williams does).

 

An additional problem is that, even for items covered by warranty, parts seem to become suddenly unavailable.  Moreover, some off-shore factories prefer to deliver whole products and not parts.

I have to agree with the poster who mentioned that more quality inspectors seem to be needed.  Sadly, however, when I worked in industry the push was for the BIQ plan:  "Built-In-Quality" by each employee, rather than final QC of each item.

 

On the brighter side, I have to mention an experience with Aristo-Craft.  I bought a G-gauge diesel which sat on display for a few years because of no track to run it on.  When I finally did try it it wouldn't move - just sat and spun its wheels.  I contacted AC anyway, explaining that it was out of warranty, but unrun up to that point.

 

Do you know they accepted it back, replaced a warped frame, and charged nothing?

I tried the same thing with Lionel last year, and got nowhere with the snippy rep.  Asking to speak to her supervisor, I was told, "He'll just tell you the same thing." 

Trainfun writes:

"Expecting to buy a new item for 50% off five years after it was manufactured, then expecting to get an additional five years of warranty coverage is asking to have your cake and eat it too."

 

Who is offering a 5 year warranty?  Lionel and MTH are 1 year, and have been for a long time; and, I believe, WBB has just tightened up their lifetime warranty considerably.

It seems to me that the only way to ensure quality is to supervise production and test final products.  I really don't think inspection and testing are superfluous for any credible manufacturing.  Every assembly line produces flawed products.  Catching these before they are sent on to the consumer seems to me to be a reasonable and, in the end, cost-effective practice.  Otherwise, the consumer becomes the tester and inspector.  That doesn't seem to me to be the way for companies to gain the confidence of those who consider buying their products.  Dr. Seuss is funny, but actual testing of products by skilled inspectors is not a Dr. Seuss kind of job.  It saves shipping and repair costs, as well as needless buyer frustration.  Does MTH test their products stateside before final distribution?  Does Lionel?  Or do they send out as-is  whatever they receive from China?  Of course, companies have to make a profit; but long-term profit comes by way of association of brands with quality assurance.  People prefer to buy from companies that "stand behind" their products and separate the wheat from the chaff before products go to retail.  As a consumer, I would gladly pay more for a product I know will work when I unpack it.  I would also be pleased if some of the dollars paid to stockholders and executive officers would be spent on more thorough testing of assembled products.  When a company's products have a high failure rate or a service center doesn't stock enough parts or fix items under warranty in a timely way, people stop buying that company's products.  Making a profit requires ongoing customer satisfaction.

I have been buying MTH products for the last 8 months and until today, I never knew about what was going on.  Both authorized stores and train shows claim new in box, but unless it has a date of manufactured stamped in the outside, we will not be aware of what we are getting.  I makes me upset to know now, that after several buys, and expensive, that my product may not live up to its warrenty. 

 

Originally Posted by cdtluna:

I have been buying MTH products for the last 8 months and until today, I never knew about what was going on.  Both authorized stores and train shows claim new in box, but unless it has a date of manufactured stamped in the outside, we will not be aware of what we are getting.  I makes me upset to know now, that after several buys, and expensive, that my product may not live up to its warrenty. 

 

What makes you say that?

The new policy applies to items delivered after Jan 1,2012.

 

Looks to me that the effect of this new policy is 5 years down the road on trains delivered after 01/01/12 and still new on the shelf then.

Originally Posted by Gordon Z:

It seems to me that the only way to ensure quality is to supervise production and test final products.  I really don't think inspection and testing are superfluous for any credible manufacturing.  Every assembly line produces flawed products.  Catching these before they are sent on to the consumer seems to me to be a reasonable and, in the end, cost-effective practice.  Otherwise, the consumer becomes the tester and inspector.  That doesn't seem to me to be the way for companies to gain the confidence of those who consider buying their products.  Dr. Seuss is funny, but actual testing of products by skilled inspectors is not a Dr. Seuss kind of job.  It saves shipping and repair costs, as well as needless buyer frustration.  Does MTH test their products stateside before final distribution?  Does Lionel?  Or do they send out as-is  whatever they receive from China?  Of course, companies have to make a profit; but long-term profit comes by way of association of brands with quality assurance.  People prefer to buy from companies that "stand behind" their products and separate the wheat from the chaff before products go to retail.  As a consumer, I would gladly pay more for a product I know will work when I unpack it.  I would also be pleased if some of the dollars paid to stockholders and executive officers would be spent on more thorough testing of assembled products.  When a company's products have a high failure rate or a service center doesn't stock enough parts or fix items under warranty in a timely way, people stop buying that company's products.  Making a profit requires ongoing customer satisfaction.

I don't really understand the argument that since trains aren't produced by the millions as are cars and electronic devices, one can't expect a high standard of quality control.  To the contrary, since most items are produced in small or tiny production runs, there is simply no excuse for a high failure rate.  High end locomotives are a luxury product more like Gucci than Hyundai.

No matter the view supporting or rejecting the idea of this new policy, it has always been true buyer beware. However it should be self evident that any policy will have two sides to it. What needs to be looked at is the policy idea of one size fits all. To be ethically responsible, even with business practices, there needs to be exceptions to the rule. We all have heard from time to time no matter which manufacturer, there are productions which have an unusally high failure rate. These items need to be the exception. If you are the original purchaser and the manufaturer basically produced a lemon, there should be an unlimited or long time warranty for the repair to be made. I know many enthusiasts who buy for some future layout but have not had the opportunity to run their items. If the manufacturer knows of a problem it should keep a supply of parts to correct there mistake and do it under an exception warranty. If they want to get the problem over more quickly, then they should admit problem on this and other forums and in the related magazines and get the job done. That includes requesting retailers to return such items and not keep on their shelves unrepaired waiting for unsuspecting customer.

Larry S

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