Dear Tom and Ray:

I nearly got into an argument with a friend about "badge engineering." I know the Honda Passport is the same as the Isuzu Rodeo. As far as I can tell, the Honda and the Isuzu are identical except for three things: the nameplate, the price (Honda costs more) and the warranty (Isuzu's is better). My friend insists the Honda is made to a higher standard of some kind -- as if there's a Honda coming down the Isuzu assembly line and the foreman yells out "Hey, Vinny, that one's a Honda; give the bolts an extra twist!" I believe this is exactly what Honda wants you to believe so you'll pay more and get less warranty. Do you guys know the real story? -- Doug

Ray: Of course we do, Doug. They come down the same assembly line, have their bolts twisted the same number of times, and, except for some cosmetic differences, they're identical.

Tom: This is called "badge engineering," when one company takes another company's car (to fill a perceived "hole" in its lineup), and simply slaps its "badge" onto it. The Honda Passport is an Isuzu Rodeo in disguise.

Ray: This has been done for years; it's just more prevalent now. The Mazda B Series pickup truck is a Ford Ranger with a Mazda sticker on it. The Chevy Tracker is really a Suzuki Sidekick. And on the list goes.

Tom: In terms of price, shared vehicles tend to be priced pretty similarly. Usually the company that actually makes the car (in this case, Isuzu), sells it for a slightly lower price. But it is hard to really compare the prices because the optional and standard equipment is rarely the same.

Ray: For instance, if you go to cars.com on the Web and look up the prices of cheapest versions of each car, you'll find the Isuzu is about $4,000 cheaper. "Wow!" you might say. "That's MUCH cheaper!" But when you look closely, you'll notice that the Isuzu comes with a four cylinder engine, and the base Honda version is only available with Isuzu's optional V6.

Tom: So you compare the base Isuzu with the V6 option to the base Honda, and suddenly the difference is less than $2,000. "That's still a big difference," you say. But when you look carefully down the list of standard and optional equipment, you'll find that for that $2,000, Honda throws in a bunch of stuff that costs extra on the Isuzu; like air conditioning, power windows and locks, and other gizmos. When it's all said and done, the prices are pretty similar, with a slight advantage, as we said, to Isuzu, who makes this car.

Ray: When it comes to warranties, you're right that Isuzu's is better. When a car company takes a car and "badges" it as its own, it almost always offers its OWN warranty. In this case, Isuzu just happens to have a 60/60,000 power train warranty, vs. 36/36,000 for Honda.

Tom: So which one should you get? In this case, if everything else is equal, you'd save a little money and get a better warranty by buying the Isuzu. But all things are not equal. And if you're the average American, you're probably much closer to a Honda dealer than an Isuzu dealer. So in cases like this, we recommend you ignore the badge and buy based on convenience.

* * *

* * *

Wait! Don't buy another car without the mechanic's checklist that's included in Tom and Ray's pamphlet "How to Buy a Great Used Car: Secrets Only Your Mechanic Knows." It will help you get a good used car and avoid the clunkers. To order, send (check or money order) to Ruin, P.O. Box 536475, Orlando, FL 32853-6475. You can also order online.

© 1998 by Tom and Ray Magliozzi and Doug Berman Distributed by King Features Syndicate, Inc.

Back to the November 1998 index