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BMW owners “entirely content” with three-year warranty

BMW Australia currently has no plans to extend its current three-year warranty. 


The brand is instead planning to refine its service and dealer experience, following in the footsteps of its rivals at Mercedes-Benz – which earlier this year ruled out a longer warranty and placed focus on customer service – and the long-term customer satisfaction kings at Lexus.

"The feedback we've got from customers is that they are entirely content with what we offer, because [owner satisfaction is] about more than about a number," said Nick Raman, product communications manager at BMW Australia.

"We work with [dealers] constantly on initiatives that are going to improve [owner] experience. Customer centricity – I know it's a term we mention a lot – is super important," he said.

"Certainly the efforts on improving and delivering to customers on an ongoing basis is very much a part of the business going forward."

Australia's top-ten selling brands all offer a five-year warranty, with the exception of Kia and its seven-year coverage period.

But the luxury market has been slower to move: although Lexus offers a four-year warranty the likes of BMW, Audi and Mercedes-Benz have stuck with three years.

Premium upstart Genesis mirrors the five-year warranty of its parents at Hyundai, but its volumes are minuscule compared to the German luxury brands.

"So you know the discussion of warranty is a talking point at the moment. More so for the media and some of the other car companies, but it is something we've been discussing for years," said Jerry Stamoulis, head of media relations at Mercedes-Benz Australia, earlier this year.

"It is not a fashionable item for us which we just started talking about. At this stage it is not something we are offering."

Increasing warranty from three to five years means brands need to hold back more funds at the time of sale – which means the selling price of the car may increase, or companies will need to redirect a portion of their marketing funds to support it.

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