Jamaica Gleaner

WAR­RANTY a con­fi­dence booster

- Kawain Fearon Gleaner Writer kawain.fearon@glean­erjm.com

BUY­ING A car is a sig­nif­i­cant ex­pen­di­ture, what with the cost of gas, gen­eral main­te­nance, the loan re­pay­ment, in­sur­ance – and those pesky traf­fic tick­ets ev­ery now and then.

As with any in­vestor, new car own­ers are look­ing for a safety net in the form of war­ranties to help off­set costs in the event of ac­ci­den­tal dam­age. The cost of dam­age could run into the hun­dreds of thou­sands of dol­lars, depend­ing on the type of ve­hi­cle, and could help pre­serve that no-claim bonus on your in­sur­ance.

Ac­cord­ing to Kent LaCroix, chair­man of the new-car um­brella group Auto have opted to in­crease war­ranties in a bid to lure buy­ers and sig­nal con­fi­dence in the prod­uct they sell.

In the used-car sec­tor, deal­ers are only will­ing to of­fer war­ranties for three months on en­gine and trans­mis­sion de­spite claims by some cus­tomers of ex­pe­ri­enc­ing prob­lems mere weeks or days af­ter pur­chase.

Ac­cord­ing to Matthew Steven­son, brand and sales man­ager for Suzuki at Stewart’s Auto Sales, which this year in­creased the war­ranty pe­riod to five years un­der Suzuki’s Triple 5 pro­mo­tion, said it was done “to give more value to the cus­tomer. It’s a strate­gic move from Suzuki Ja­pan. It shows that they have con­fi­dence in their prod­ucts by up­ping the war­ranty to five years.”

Given that cars are de­pre­ci­at­ing as­sets, many deal­ers are of­ten keen on the re­sale value. When the war­ranty is still in ef­fect at the time of re­sale by the first owner, it usu­ally helps the value of the car. LaCroix noted that “in most cases, war­ranties that re­main are passed on”, re­main­ing in ef­fect for the per­son pur­chas­ing what would now be a sec­ond-hand ve­hi­cle. This, in essence, makes for a good buy. How­ever, if the war­ranty pe­riod was up, LaCroix does not be­lieve the re­sale value on the car would fall sig­nif­i­cantly.

Steven­son, too, be­lieves that the re­sale value on cars un­der war­ranty will fetch a bet­ter price than one on which the war­ranty pe­riod has ex­pired. “I would rather buy a three-year old car, which has two years war­ranty left, than one with no war­ranty, pro­vided that the mileage is de­cent,” he said. With re­spect to cars out­side of the war­ranty, he said, “It’s yet to be seen if it does help with the value, but I as­sume it would.”

 ??  ?? An over­head view of the ve­hi­cles on dis­play at the ADA Mo­tor Show 2014 held at the Na­tional Arena.
An over­head view of the ve­hi­cles on dis­play at the ADA Mo­tor Show 2014 held at the Na­tional Arena.
 ?? FILE ?? STEVEN­SON
Deal­ers’ As­so­ci­a­tion (ADA), “Some war­ranties are ad­justed from time to time by the man­u­fac­turer. Ba­sic min­i­mum within the sec­tor is two to three years or 60,000 to
FILE STEVEN­SON Deal­ers’ As­so­ci­a­tion (ADA), “Some war­ranties are ad­justed from time to time by the man­u­fac­turer. Ba­sic min­i­mum within the sec­tor is two to three years or 60,000 to
 ??  ?? LACROIX 100,000 kilo­me­tres, which­ever comes first.”
With a tug-o-war for cus­tomers be­tween new and used-car deal­ers, it is lit­tle won­der sev­eral of the for­mer
LACROIX 100,000 kilo­me­tres, which­ever comes first.” With a tug-o-war for cus­tomers be­tween new and used-car deal­ers, it is lit­tle won­der sev­eral of the for­mer

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