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Will more premium carmakers move to a five-year warranty?

Mercedes-Benz is the first premium German brand to go to a five-year warranty, but Genesis offered it first.

Mercedes-Benz is now the first and only premium German brand to move to a five-year/unlimited kilometre warranty, but will its rivals follow suit?

At present, Mercedes-Benz archrivals Audi and BMW are offering a three-year/unlimited kilometre warranty for all new vehicles sold, but both brands have indicated they will not up their assurance period.

“Audi Australia believes our well-established three-year/unlimited kilometre factory warranty occupies a competitive place in the market,” the brand told CarsGuide.

“Since 2019, Audi Australia has offered a full range of competitively priced three- and five-year prepaid service plans that give owners certainty when it comes to running costs.

“All customers purchasing new Audi vehicles can take advantage of these service plans, enhancing ownership experience.

“We will continue to monitor the market to ensure that all aspects of our value proposition are as competitive as possible.”

Meanwhile, BMW Australia boss Vikram Pawah told CarsGuide that “BMW Group Australia has no plans to change its warranty offering at this point”.

Porsche also offers a three-year/unlimited kilometre warranty on its vehicles with no plans to up their assurance period.

Outside of Germany, South Korean brand Genesis was the first premium carmaker in the Australian market to offer a five-year/unlimited kilometre warranty when it launched as a standalone marque in the middle of last year.

Lexus serves up a four-year/100,000km assurance period on new vehicles.

Volvo meanwhile, has a three-year/unlimited kilometre warranty in place, with “currently no plans to introduce a five-year warranty”, though a brand spokesperson told CarsGuide that they will “continue to monitor the local trading conditions”.

Finally, Jaguar Land Rover (JLR) and Alfa Romeo have three-year warranties in place, with the former brand’s models covered for 100,000km and the latter up to 150,000km.

JLR told CarsGuide that “we will always monitor the competitive environment, but no plans at this time”.