Chinese car maker MG has announced a 10-year/250,000km warranty on all new cars sold in Australia from today – up from its previous seven-year/unlimited km coverage.
In what is certain to a major upset among the Top 10 car brands, the MG 10-year warranty has no strings attached – whereas Mitsubishi’s 10-year warranty is conditional.
Mitsubishi Australia only offers 10-year warranty coverage to customers who service their vehicles solely within the Mitsubishi dealer network.
In reality, Mitsubishi Australia’s warranty is five-plus-five year coverage. The first five years of the warranty apply regardless of where the vehicle is serviced, and the second five-year coverage (to take it to 10 years) only applies to vehicles that have only ever been serviced within the network.
The Mitsubishi Australia 10-year warranty deal locks customers into that brand’s fixed price service schedule.
The MG 10-year warranty is much fairer – and gives customers the option to shop around for a better price for routine maintenance.
While new MG cars must be serviced by a licenced mechanic using appropriate parts – and according to the vehicle’s servicing schedule – they don’t have to go back to the selling dealer to keep the 10-year warranty coverage.
Of course MG Australia would prefer cars to be serviced within the MG dealer network to ensure the proper parts and technical updates are introduced according to the routine maintenance schedule – but it won’t compel customers to do so.
For now the Australian Competition and Consumer Commission (ACCC) says it is monitoring Mitsubishi Australia’s 10-year warranty – and whether or not it should be called ‘five-plus-five’ year coverage to give buyers a clearer understanding of the terms.
Because the MG 10-year/250,000km warranty does not have this stipulation, it is considered by industry analysts to be the best new-car warranty offered in Australia to date.
Here’s how the warranty period compares to other brands:
In a media statement issued by MG Australia’s Chief Commercial Officer, Giles Belcher – a former top level executive at Ford and Hyundai – said brand confidence is a top priority for buyers.
This is especially the case for emerging brands such as MG which is now under Chinese ownership.
“If you’re looking for value and peace of mind from a new car purchase, the length and quality of the factory warranty should be as important as the horsepower,” Mr Belcher said in a media statement issued today.
“We think that our new 10-year warranty (across the entire) range is the best and strongest in market.
“We are listening to our customers. We do think a longer warranty is more attractive, and it also reiterates trust in our cars.
“MG’s 10-year warranty delivers unmatched peace of mind and ensures that you are fully supported on every journey.
“When it comes time for our customers to upgrade their car, we want them to turn to us first. We have a stack of great product in market and more on its way, so we want people to try us sooner than later.”
Joshua Dowling has been a motoring journalist for more than 20 years, most of that time with Fairfax (The Sydney Morning Herald), News Corp Australia (Herald Sun and News.com.au), and most recently Drive.com.au (owned by Nine Media). He is also a World Car of the Year judge, has won numerous journalism awards, and test drives up to 200 cars per year.
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