Skoda to offer 5 year guarantee in Norway

[takktakk]

As of January 1st Skoda offers a 5 year factory guarantee/100 000 kilometers on all models sold in Norway. The previous guarantee was 3 years.

The extended guarantee also applies to Audi and Volkswagen of VAG. Seat is not presently sold in Norway.

Kia with 7 years, and Hyundai and Mitsubishi - each already with 5 years/100 000 kilometers - has been the only ones offering such a guarantee until now. VAG represents a major part of all cars sold in Norway, and the motorpress now speculates what other brands will do to meet VAG's new initiative. Brands already selling less than VAG ahead of this extension are expected to have to do something not to loose out even more.

What do you think? Would Skoda (or Audi/VW for that matter) sell more cars in the UK if such a warranty was applied?

Edited 10 January, 2011 by takktakk

[expostmanpat]

With main stream marques like Vauxhall extending their warranty periods it is only a matter of time before others follow.

Allthough I don't know the details of the vauxhall scheme I would hazard a guess that the amount of parts still covered by the 8 year mark is fairly slim (ie exclusions due to wear and tear) and I suspect you will have to jump through hoops with annual services/inspections etc etc to maintain cover.

Wether they would sell more cars, possibly to older people/ but lets face it we haven't all run out and bought, Kia /Hyundai and Vauxhalls have we?

[pmc]

I recently bought a vauxhall astra as a replacement for my wifes' Toyota.

If Skoda had a warranty period longer than 3 years then we might have bought an Octavia but as a recipient of the ESP problem on my Octy there was no way that I'm spending my money on a Skoda until they offer a competetive warranty.

So yes - 5 years warranty probably equals more sales.

pmc

[eddie2]

I wish they had done this a few years back! Then I wouldn't have spent the last two weeks arguing with Skoda over who is going to pay for my replacement gearbox!

[Stevoraith]

Well we've just ordered a new Octavia and will probably pay the £500 or so to extend the warranty to 5 years so if they started giving 5 year warranties as standard then it would be a very good thing indeed.

It's good to see things going this way- IIRC it was only about 10 years ago that it became the norm to offer 3 year warranties. Before that it was only 2 years.

[villa1]

Well we've just ordered a new Octavia and will probably pay the £500 or so to extend the warranty to 5 years so if they started giving 5 year warranties as standard then it would be a very good thing indeed.

It's good to see things going this way- IIRC it was only about 10 years ago that it became the norm to offer 3 year warranties. Before that it was only 2 years.

Here in the emearald isle we get a massive 2 yr warranty!! But then again this country has gone down the tubes!!

[110ivan]

But who is giving out the 5 year warranty ?,is it Skoda CZ or from Skoda in Norway ?.We give 3 years warranty here in Malta,Skoda CZ cover us 2,we give the extra year from our part.If Skoda CZ are giving the 5 year instead of 2 year warranty then that should apply to all dealers worldwide.If Skoda CZ are just giving out 2 years than it is to each country on how much to offer ....

[cheezemonkhai]

If they give a 5 year warranty, then they might sell a few more cars due to it, but better for skoda is that they would get more people into the more profitable dealer servicing.

That would IMHO pay for the extra cost of years 4 and 5.

[eccleshill]

The answer is not simple.

With a 5 year warranty some folk would tend to hang on longer and change every 4-5 yrs instead of every 3yrs. That woul dreduce sales.

But the 5 yr warranty would help retain values of 3 yr old cars so those changing at 3yrs would get better resale value thus making the car a more attractive proposition. That would increase sales.

['daiking']

The answer is not simple.

With a 5 year warranty some folk would tend to hang on longer and change every 4-5 yrs instead of every 3yrs. That woul dreduce sales.

But the 5 yr warranty would help retain values of 3 yr old cars so those changing at 3yrs would get better resale value thus making the car a more attractive proposition. That would increase sales.

Exactly, 5yrs/100,000km which is only 60,000 miles seems to be aimed at private buyers rather than fleet users but IMHO is an attempt (like Vauxhall are trying) to get people to stay within the expensive dealer network for servicing work/repairs rather than going to independents.

Or, how much is a typical Mfr extended warranty? Mazda wanted £550 off me for two years extra cover (which would have covered pmc's Teves problem - happens on the mazda 3 as well). Do we think that this cost can't be absorbed in higher prices and buyers thinking they're getting something for nothing?

Or buy Japanese, Just passed 60k in 4 and a half years with nothing more than tyres needed.

*touch wood*

lucky heather

rabbits foot

2 magpies...

[cheezemonkhai]

TBH 5 years/100k km is pointless to anyone who seriously uses the car daily for any distance and 5years/100k miles would be more realistic.

Especially as they give 3 years 60k miles at the moment.

[M12MKD]

if my fabia had a 5 year 100k mileage warrenty then the leaking doors could have been repaired (again) by the dealer instead of myself doing it.

*touches wood* So far apart from user error the only problem in 6 years and 100k the fabia has only had the leaking doors problem, other than that only just normal wear and tear parts.

But yes 5 years 100k would indeed make me more likely to buy from skoda................oh wait I did anyway

"IF" I was going to replace the fabia I would be very tempted by vauxhalls 100k mile warrenty as that could well give me 10 years of possible worry free motoring. But as stated what does it include and exclude?

[cheezemonkhai]

Whatever it does include or exclude, it's more than the nothing you'd currently get elsewhere.

[takktakk]

But who is giving out the 5 year warranty ?,is it Skoda CZ or from Skoda in Norway ?.We give 3 years warranty here in Malta,Skoda CZ cover us 2,we give the extra year from our part.If Skoda CZ are giving the 5 year instead of 2 year warranty then that should apply to all dealers worldwide.If Skoda CZ are just giving out 2 years than it is to each country on how much to offer ....

It is the Norwegian representative of VAG that does it, and they've increased the price of each car by £100 to cover it. Included makes are Audi, Skoda and Volkswagen. Seat is currently not represented in Norway. What kind of arrangement that is made towards Skoda CZ I do not know.

Edited 11 January, 2011 by takktakk

[Delacroix]

I think it's ineviatble that they will move in this direction when so many other manufacturers are now moving to 5 or 7 year warrranties as standard, and with most modern cars being so reliable now it probably won't cost them too much extra in terms of warranty repairs anyway ovverall.

I take the point that with a milage cap (and 1st owner only rule with vauxhall) it is pretty worthless for fleets and high milage business users. But (and it's a big but) when you think about the people who buy new cars (apart from fleets) as opposed to nearly new or 2 or 3 year old models then it is often people who have perhaps just retired and are looking for a reliable keeper with a good warranty for peace of mind and who won't be doing masses of miles. For that market the vauxhall scheme is pretty much perfect I think and I'm sure Skoda has lost market share in that sector as a result. In my case I would never have considered buying new except that I came into a bit of money after my dad died and his house was sold - I figured it was probably the one time in my life I could ever afford a new car and I haven't regretted it (and the depreciation wasn't actually noticable ijn the first year in my case due to the special deal I got at the time). But would I have been happier with an even longer warranty? You bet - and it's good for residuals too don't forget!