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New Car Warranties Offer No Full and Free Cover - CHOICE # 431

  • 2012.09.17

When something goes wrong with the car, many owners will take it directly to the dealers for repairs while it is still under warranty, but consumers may be entitled to nothing if they do not stick to the terms and conditions stipulated in the warranties.

A survey by the Consumer Council on 19 new car warranties found that the cover usually lasts for 2 to 8 years, or 60,000 to 160,000 km, whichever comes first. It either started on the first registration date or the day of delivery.

Most plans will specify a warranty period for major mechanical parts such as the engine, gearbox and steering system, from 2 to 5 years, or 6,000 to 60,000km, whichever comes first.

Damage to paint and body caused by rust and corrosion is also covered for 12 years in the warranties of 4 dealers, while hybrid battery is included in the policies of 2 dealers with a 7 or 10-year warranty.

For wear and tear items like brake pads and spark plugs, or consumable items such as fluids used in the car, consumers will likely have to pay the cost of repairs as these are commonly excluded in the warranties.

The warranties look attractive but consumers cannot expect all will be free and covered even with a warranty. As all companies in the study required car owners to take their car to the garage specified by the dealer for service checkup at every 4 to 24 months, or have done 5,000 to 20,000km, whichever comes first. Consumers failed to do so would have their warranties voided.

Of the 19 companies surveyed, 6 companies provided maintenance for cars under warranty with a cost on a per visit basis.

The remainders (13 companies) offer maintenance plans or packages that include 1 to 9 service visits with fees ranging from HK$1570 to HK$220,000, with an effective period of 1 to 3 years.

Besides, with increasing mileage of the vehicle, consumers may have to pay more for the parts, as it was stated in some of the warranties that the costs borne by the dealers will diminish as the age of the car increases.

In addition, 14 dealers surveyed stated that the warranties will be voided if they have changed or replaced the worn items at a non-dealer's garage, while 4 responded that it would depend on the type of consumable items.

Those who drive to places outside Hong Kong will risk losing the warranty as 5 dealers in the study stated that travelling out of Hong Kong would void the warranty policy. 1 dealer said driving the car outside Hong Kong will render the warranty null except for those with a licence plate for Guangdong and Hong Kong.

Meanwhile, owners of parallel imported cars should pay special attention to the fact that a majority (13) of dealers in the study would not provide maintenance plans and packages for their vehicle.

While the dealers of 1 car brand expressed that there should be no difference between the warranty enjoyed by a vehicle bought via a Hong Kong agent and a parallel import, the warranties will only be effective if the parallel imports did comply with the warranty terms and standards.

Car owners are reminded of the following when considering a warranty or after-sales service:

  • Read carefully the terms and conditions and understand the scope of service as well as the extra fees and charges in repairs and maintenance before joining a plan.
  • Obtain from the car owner the records of the maintenance and repairs of the car at the dealer's garage if it was a used car under warranty, or the warranty could be invalidated.

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