Cars car warranty

Published on September 24th, 2023 | by Daniel Sherman Fernandez


Importance Of Car FACTORY Warranty Today

New cars are getting more complicated and the factory warranty needs to get more extensive

There was a time when a new car factory warranty was just one year (12 months). Then it increased to 3 years (36 months). About a decade ago, the 5 year (60 months) warranty became industry standard for almost all new cars sold in Malaysia.

Yes, there were still some car manufacturer offering just 3 years’ factory warranty and the following 2 years’ warranty came from a local provider (which is hard to claim from).

Well, today, 2023 we see another shift with car warranties and the 7 year (84 months) warranty has arrived in Malaysia.

This brings increased confidence in the automotive brand and better ownership as most middle class new car owners keep their cars for 6 to 7 years which translates to easy to budget car ownership.

Meanwhile, it must be understood that a car warranty is the manufacturer’s way of saying, “We stand behind our products, and if they are not working up to our documented standard, we will pay for the repairs to make sure it does.” 

factory warranty

So the car parts under warranty that need replacements or repair within the time frame or kilometers driven within the term, the manufacturer pays for at no cost to the owner.

First and foremost, depending on the severity of a car problem, car repairs can cost up to thousands of Ringgit and this can put the average car owner in debt.

So, now car owners that have a car under warranty, do not need to pay for the cost of the repairs that are covered in the factory warranty. It is not like insurance where one pays a deductible; a warranty pays for the repairs in full.

Second, warranties don’t just cover the parts but also the labor. Unless one is ordering parts and installing them themselves, then man hours will need to be put in to install those parts. How do they get paid? More often than not, the warranty will cover manual labor costs, but not always.

Third, keeping a car in great running condition will improve its resale value. On that note, routine maintenance is a good practice to consider for every car owner. Not only can it lessen the chance of parts failing, but selling a vehicle that is well-taken care of and is still under warranty is a bonus for a prospective used car buyer and also making it more desirable.

The above also increases the demand factor for the car brand as it will be known in the market to have better value after a few years on the road. So, it is a win for the ‘Car Brand’ in the long term and the car owner as well.

Interestingly, Peugeot in Malaysia which is distributed by BERMAZ AUTO has increased their warranty for the Peugeot 2008, 3008 and 5008 models registered in Malaysia between September and October of 2023 to a 7-year warranty, 7 years of free service maintenance and a car insurance subsidy.

A couple of months earlier, to convince Malaysian buyers to try the Chery brand out, the Omoda 5 and also Tiggo 8 PRO SUV’s come with a 7-year/150,000km manufacturer warranty with 5-year free service package (6 intervals, with labor covered).

We wonder how many more car manufacturers will follow Peugeot and also Chery in the above move to increase their brand loyalty and also value with Malaysian car buyers.

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