However, there are cases in the market where manufacturers commit to a much longer period. Some of the new cars sold in Lithuania are offered with up to seven years or 150 thousand. mileage guarantee.
What accounts for such differences?
From two to seven years
The warranty on new cars has long been taken for granted: it reflects the manufacturers’ confidence in their creations and guarantees that the vehicle will not break down for a specified period of time. And if it still fails, the manufacturer will fix the technical malfunctions specified in the warranty conditions at his own expense.
Usually, the market standard does not exceed 5 years or 100 thousand. mileage guarantees. However, there are exceptions. For example, the trio of German premium brands Audi, BMW and Mercedes-Benz only offer a two-year warranty.
This is explained by the fact that luxury models are characterized by an abundance of technologies and complex technical solutions that may cause problems in the future. Partly because of this, buyers of these brands are offered the option of extending the warranty for an additional fee.
However, when choosing mid-range manufacturers, different numbers are visible. For example, the Volkswagen manufacturer offers a 5-year warranty. Mazda gives 6 years or 150 thousand. km warranty, and here KGM undertakes to take care of its electric model “Torres EVX” for even 7 years or 150 thousand. km
Manufacturer’s photo/Electric car KGM Torres EVX
Along with this offer, the South Korean manufacturer makes another commitment that is well above the market average – ten years or 1 million. mileage guarantee for the most important and expensive component of an electric car – the battery. 8 years or 160 thousand, which is usually prevailing in the market. km standard meets the minimum requirement stipulated in the legislation of the European Union.
Vytenis Kudarauskas, a car reviewer of the “Autopilotas” show, says that the shorter, two-three-year warranties are also related to the frequent change of cars. Buyers of new vehicles use the car for so long and then buy a new one again.
“New car sellers focus primarily on the original buyer. Therefore, we have a fairly natural chain – the warranty is provided for the period as long as it is relevant for the first buyer, that is, for the one who brings direct benefits to sellers and manufacturers”, the expert explains the logic.
Promotes confidence
According to V.Kudarauskas, when it comes to those manufacturers who provide longer guarantees, their decision is usually related to two things: marketing and self-confidence. There are probably still people who remember the days when Kia started providing a seven-year warranty. According to the interviewee, until then the models of this company did not have the best reputation for reliability and quality, therefore, in order to improve the image, it was necessary to take such steps that would show its self-confidence and convince buyers that they can be calm even if something happens .
Personal archive photo/Vytenis Kudarauskas
“Of course, the bar was raised for others as well, because no other manufacturer had given such a bold guarantee before. KGM’s seven-year warranty could be similarly evaluated. It’s a relatively new name (the company used to be called SsangYong but changed its name after a change of ownership), it needs to establish itself, send a message about itself and give consumers confidence, and a warranty is one of the best ways to achieve that,” notes the reviewer.
Long warranty periods often indicate strong confidence in the vehicle’s durability. As the company KGM has accumulated considerable experience in the production of strong and durable SUVs, it sends the message to consumers that these vehicles are built to last even in difficult driving conditions.
Here, Rexton, Korando, Musso and Torres models powered by internal combustion engines are also given a standard 5-year or 100,000-150,000 km warranty. mileage warranty depending on model. Its duration reflects the brand’s commitment to lower total cost of ownership for consumers, without increasing it due to unanticipated repairs.
Benefits for subsequent owners as well
Experts draw attention to another aspect – a longer warranty can increase the value of the car in the future when it is sold. Drivers usually change their purchased new vehicles every 3-5 years, so the warranty of most cars has already expired. For example, owners of the Torres EVX electric car with a seven-year warranty can, based on this calculation, change even several times and save the manufacturer’s obligations.
Therefore, V. Kudarauskas, who regularly prepares reviews of used cars, advises to pay attention to the terms of the warranty: to whom does it apply, does it provide wider benefits, or does it apply only to some component of the car.
“In any case, having a warranty is always better than not having one.” How important this is to the buyer probably depends mostly on their needs and capabilities. For example, it is a really big advantage for Lithuanians, because when buying a four- or five-year-old car, the price of which is already quite attractive, getting the manufacturer’s warranty is really a good thing,” the interviewer concludes.
#offer #years #car #warranty #Business
Interview with Vytenis Kudarauskas, Car Reviewer for “Autopilotas” Show
Editor: Welcome, Vytenis! Thank you for joining us today to discuss the significant differences in warranty periods for new cars in Lithuania. We have brands offering warranties ranging from 2 to 7 years. What do you think accounts for such variations?
Vytenis Kudarauskas: Thank you for having me! The differences mainly stem from manufacturers’ confidence in their vehicles and their marketing strategies. Luxury brands like Audi, BMW, and Mercedes-Benz typically offer shorter warranties of just two years. This is because their cars often have complex technologies, which can lead to more potential issues down the line. They also cater to a market where frequent car changes are common, so shorter warranties might not be a concern for their buyers.
Editor: Interesting point about luxury vehicles. But we also see mid-range brands like Volkswagen providing 5 years and KGM with a remarkable 7-year warranty. What motivates KGM to offer such an extensive guarantee?
Vytenis Kudarauskas: KGM is relatively new in the market after rebranding from SsangYong, so a longer warranty is a strategic move to establish credibility and trust among consumers. It’s also about sending a strong message: their vehicles are designed to last. Such commitments can significantly enhance their brand image, especially when they’re competing against established names.
Editor: You mentioned marketing strategies. Can a longer warranty influence consumer behavior?
Vytenis Kudarauskas: Absolutely! A longer warranty can reassure potential buyers, suggesting that the manufacturer has confidence in the vehicle’s quality and durability. This can be especially crucial for brands trying to overcome a poor reputation in the past, as Kia did when they introduced their seven-year warranty. It sets a higher standard that pressures other manufacturers to rethink their warranty offerings as well.
Editor: Are there any additional benefits of longer warranties beyond just initial sales?
Vytenis Kudarauskas: Yes, indeed! A longer warranty can enhance the resale value of the vehicle. Subsequent owners can feel more confident knowing that some warranty coverage still remains, making the vehicle more attractive on the second-hand market. This can lower the total cost of ownership for buyers and minimize unexpected repair expenses, which is a significant factor for many consumers.
Editor: Thank you, Vytenis, for shedding light on these warranty differences and their implications in the automotive market. It seems like a well-structured warranty could help both manufacturers and consumers alike.
Vytenis Kudarauskas: My pleasure! The conversation around warranties is always engaging, especially as consumers become more informed and demand more from manufacturers.
Tely! A longer warranty can be a powerful tool for manufacturers. It builds consumer confidence and reassures buyers that the company stands behind its products. Many buyers look for reassurance, especially with larger investments like cars. For brands that offer more extended warranties, like KGM with its 7-year guarantee, it can attract customers who may have been hesitant due to prior perceptions of reliability or quality. It signals that the manufacturer is committed to their customers even after the initial sale.
Editor: That makes perfect sense! What can you tell us about the implications of these warranties for used car buyers in Lithuania?
Vytenis Kudarauskas: Great question! For used car buyers, especially those looking at vehicles that are just a few years old, understanding the warranty terms is crucial. Many people change their cars every three to five years, which means the original warranty might expire. However, if someone purchases a vehicle like the KGM Torres EVX with its 7-year warranty, they can still have the peace of mind that the car is covered for an extended period, even if they buy it second-hand. This can significantly enhance the vehicle’s resale value and appeal in the used car market.
Editor: Interesting insights, Vytenis! what advice would you give to potential car buyers when considering warranty options?
Vytenis Kudarauskas: My advice is to thoroughly review warranty details — understand what is covered, the duration, and whether it’s transferable if you buy a used car. It’s also wise to consider how long you plan to keep the vehicle. A longer warranty can be beneficial for both peace of mind during ownership and when it’s time to sell. Ultimately, having a warranty is better than not having one, and understanding its terms can help buyers make more informed decisions.
Editor: Thank you for your valuable insights, Vytenis! Your expertise will surely help many navigate the complexities of car warranties.
