The Warranty is one of the key factors influencing the purchase decision for any Vehicle or Equipment, it even showcases the Manufacturer’s confidence in the quality of their Products.
In this article, we are going to define and explain the different aspects of a Warranty.
Definition of Warranty
A Warranty is a written commitment provided by the Dealer on behalf of the Manufacturer, guaranteeing that the Product is free from any manufacturing defects and promising to repair it or replace it in the event of any failure happening during the Warranty period.
How it works
The Warranty claiming process starts when either the Customer or Dealer identifies a possible malfunction and abnormal behavior in one or in multiple Components of the Vehicle or Equipment.
Based on the Dealer report sent to the Manufacturer, an investigation will be made to identify whether the observation is considered a malfunction or not, whether due to misuse or a manufacturing defect, in some cases Manufacturer may request to send the Component back to the factory for further inspection.
In the event of approving the Warranty claim, the Manufacturer will refund the Dealers totally or partially the cost of repairs covering labor and parts, in case the Warranty is rejected, the Dealer and Customer will have to find out an arrangement to cover the repairs.
In some cases when a Warranty decision may take a long time to be made especially when sending Components back to the factory, the repairs will be carried out before getting the final judgment, in that case, the Customer may still be requested to pay for the repairs if claim rejected.
Components covered under Warranty
In general, everything is covered under Warranty except Wear and Tear items like Wiper Blades, Tires, Battery, Light Bulbs, all types of Fluids, Rubber Hoses, Brake Liners, Brake Pads and Clutch Disc.
Types of Warranty
Standard Warranty
The Standard Warranty covers all Mechanical and Electrical Components except Wear and Tear items, in general covering 1 year / 60,000 km for Vehicles and 1 year / 2,000 hours for Equipment.
Extended Warranty
The Extended Warranty is provided as a complementary to the Standard Warranty, it may cover some or all the Components which is in general 1 year / 30,000 km for Vehicles and 1 year / 1,000 hours for Equipment.
Partial Warranty
The Partial Warranty covers some of the Components, some of the repair costs or either Labor or Parts costs.
Drivetrain Warranty
The Drive Train Warranty covers the Gearbox, Driveshaft, Axles, Wheels and it may include the Engine as well.
Goodwill Warranty
The Goodwill Warranty is provided when the Original Warranty is not applicable due to the expiration of the coverage period or the rejection of the claim.
This type of Warranty is generally provided by either Dealers or Manufacturers as a commercial action to retain Customer loyalty.