Kia mulling over 10 yr warranty

Wretched · 19-04-2018, 09:33 AM

Quote:

KIA is mulling the possibility of extending what was once the industry benchmark unlimited kilometre warranty out to a marathon 10 years, as other brands start to encroach on its current seven-year best offer.

Holden is the latest rival to match Kia’s seven-year deal following Honda, which also temporarily introduced the offer in 2017 and, although both warranty deals were for a limited period, Kia is preparing its next move should any brand announce a seven-year plan as a permanent fixture.

Speaking to journalists this week, Kia Motors Australia COO Damien Meredith said a further extension of the current deal was on the cards, depending on the actions of other manufacturers.

“It would be fair to say [the seven-year warranty is] our unique selling proposition and has been for four years,” he said. “I think if you did it, we would look at ten [years] very, very seriously.”

Select brands are already offering a 10-year warranty in Europe, but Meredith explained the Australian version would be even more comprehensive, if it were to go ahead.

“We would be better than that because we would try to keep it at the unlimited stage in regards to kilometres.”

A 10-year unlimited kilometre warranty would not just represent Australia’s longest but is likely to be a global first as well, and another feather in Kia’s cap. Its seven-year offering has to date played a role in enhancing the company’s strong sales.

The evolution of warranty duration and coverage in Australia has been driven partly by demanding customer requirements, competition and a unique situation created by the combined actions of local legislation bodies, said Meredith.

“In Australia, we are moving from what were in effect antitrust laws to consumer law. It’s a different ball game so it doesn’t matter if your television or whatever doesn’t work after eight years and you’ve looked after it, you go back to the manufacturer and say this is faulty what are you going to do about it?” he said.

“With what the demands of the consumer are and the ACCC and the challenging aspects of the Australian consumer law, maybe a 10-year warranty – unlimited – covers those three pillars quite well, so we’re thinking seriously about that.”

Earlier this year, the ACCC had stern words with Kia’s sister brand Hyundai regarding its obligation to customers. The action was in response to a growing number of Hyundai customers that had complained of persistent vehicle problems failing to be identified and resolved despite repeated visits to Hyundai dealerships.

Following the discussions, Hyundai agreed to better inform its customers of their rights and promised to comply with the laws in place to protect consumers.

Meredith concluded by acknowledging the company’s responsibility to honour a warranty regardless of its length, and any change to the duration would comply with consumer legislation first and foremost.

https://www.whichcar.com.au/car-news...-consideration

Ford17 · 19-04-2018, 10:49 AM

That would be phenomenal; and to me at least, shows absolute faith in the products they make.

Was only just thinking back to the 80's, when a 12 month/20,000 km warranty was the norm; and the 90's when 3 year/60,000km warranties started to become available.

mike_nofx · 19-04-2018, 04:48 PM

Has anyone had to deal with a warranty claim with Kia? Wondering if they refuse responsibility as Ford often do.

Mercury Bullet · 20-04-2018, 12:13 PM

Quote:

Originally Posted by mike_nofx

Has anyone had to deal with a warranty claim with Kia? Wondering if they refuse responsibility as Ford often do.

Read their warranty conditions, lots of fine print.

in reality not much stuff breaks after 3 years.

I've never had Ford deny a warranty claim.

lucas2 · 19-04-2018, 05:43 PM

I'm not so sure it's absolute faith in the product but more so the benefit of selling more new cars (with the comfort of the warranty for consumers) would far outweigh the cost of any warranty claims. It's good to see these manufacturers getting competitive as it's going to be good for the consumer where warranty is very important.

This may also lure more people away from buying used cars in the $20-40k range with questionable warranties and get them into "cheaper" new cars with the added peace of mind.

satria · 19-04-2018, 05:56 PM

I had to recently claim for a new air conditioner compressor just after 3 years, was fixed with no issues. That part alone i believe is over or around $2k. KIA generally have been very good to deal with for anything. I've had a couple small issues overall but they've all been fixed without much fuss. Car is a Sorento Platinum.

jpblue1000 · 19-04-2018, 06:47 PM

I imagine the warranty is for the original purchaser? Can anyone confirm? If it is the case is clever marketing tool as who keeps cars for ten years.

Oh I do!
JP

satria · 19-04-2018, 07:23 PM

The 7 year warranty is transferable.

lra · 20-04-2018, 07:43 AM

I have a friend of a friend who is the service manager for a Ford/BMW/Mazda/Subaru/Kia multi franchise dealer. Kia is the brand with the least warranty claims per vehicle by a long way.
The Kia in our family has not had a problem in 3 years.
Keeping a car for 10 years is not unusual if it is reliable, unlike some brands with gearbox and diesel engine problems.

Ford17 · 20-04-2018, 10:11 AM

Quote:

Originally Posted by lra

I have a friend of a friend who is the service manager for a Ford/BMW/Mazda/Subaru/Kia multi franchise dealer. Kia is the brand with the least warranty claims per vehicle by a long way.
The Kia in our family has not had a problem in 3 years.
Keeping a car for 10 years is not unusual if it is reliable, unlike some brands with gearbox and diesel engine problems.

This doesn't surprise me.

There is no way they'd contemplate such a long warranty if the product wasn't well made - it would end up being a financial disaster for them.

csv8 · 20-04-2018, 09:18 AM

My i20 came with 6years or 200k/kms it was the deal at the time. Along with 5 years capped price servicing and road side assist. Which I used the other for the first time as the battery died. 3.5 years for the battery. but not much electrical load. Koreans have got their act together. Now Kia are rumoured to have a ute in 2020.

Bossxr8 · 20-04-2018, 02:37 PM

Makes me wonder if they won't actually lose some future sales because of this. Would a buyer who usually upgrades after the warranty period is finished, maybe hang on to the car a lot longer than usual cause it's still under warranty?

Wretched · 20-04-2018, 02:55 PM

Quote:

Originally Posted by Bossxr8

Makes me wonder if they won't actually lose some future sales because of this. Would a buyer who usually upgrades after the warranty period is finished, maybe hang on to the car a lot longer than usual cause it's still under warranty?

I think you need to understand why people upgrade their cars.
A similar train of thought with Toyota's throughout the ages, why would people upgrade when the car continues to run? Newer features, upgrades, style, etc.

mike_nofx · 20-04-2018, 04:30 PM

Quote:

Originally Posted by Bossxr8

Makes me wonder if they won't actually lose some future sales because of this. Would a buyer who usually upgrades after the warranty period is finished, maybe hang on to the car a lot longer than usual cause it's still under warranty?

Interesting thought, I wonder the same.

I thought people sell new cars when a timing belt service is due because they don’t want to fork out near $1k at a dealership to have it done.

aussie muscle · 20-04-2018, 04:46 PM

If Ford offered a 10 year warranty on Falcon BF, mine would have expired last year. It still wouldn't have needed anything replaced other than the auto-light sensor, which failed in it's first year warranty anyway... so yes it can be done. the problem is, you need to look after your car to get longevity out of it. looking at other cars on the road, most people don't.