Longer warranties

Longer warranties

Ed Speak

There is a growing trend for car manufacturers to extend the warranty period for new cars, especially with the growth in the number of active manufacturers in the NZ market. In NZ the current longest warranty is MG who offer 10 years, whilst GWM (Great Wall Motors), Omoda Jaeco and LDV offer seven years and quite a few mainstream brands five years.
For repairers this means that most new car buyers will use the Franchised Service centres for longer periods – even though technically they can go elsewhere without risking the warranty.
Suzuki in the UK has recently looked to take this a step further offering a ten-year warranty programme for loyal customers, with the warranty period being extended each time they get their car serviced at a franchise outlet, to a maximum of 10 years (this superseded an existing seven-year warranty).
If schemes like this came to New Zealand it would inevitably take more business from repairers.
Most new car buyers will stay loyal to the franchise for the first few years whilst any minor warranty issues get sorted, but are then inclined to look to independent repairers for geographic convenience and better pricing, only returning to the franchise for any warranty-related repairs. 
Independent repairers do need to be aware of warranty periods and ensure that original parts are used in any warranty-sensitive repairs. 
Warranties have tended to ebb and flow over the years. We can certainly recall times when manufacturers extended warranties only to pull them back after a few years due to the cost and risk of them. Most of the companies offering the longer terms are new entrants to the NZ market who need to provide some reassurance for clients and as they become established may not feel the need to offer such generous warranties.

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