Skoda Australia has become the first European brand in the market to offer a standard seven-year warranty – retrospectively effective from September 1.
The new seven-year, unlimited-kilometre warranty – up from the outgoing five years – comes on all Skoda models, including RS performance models.
It is thought to be the first time a Skoda region anywhere in the world has offered such a long standard factory warranty.
Australia is an ideal market for a stretched Skoda warranty, because the cost to the brand can be more easily covered considering local buyers tend to overwhelmingly favour the company’s most well-equipped and optioned vehicles.
The average transaction price for a Skoda in Australia is $52,000 – not the figure of a mere budget brand. Skoda claims the added two years of warranty is worth between $1150 and $1670 per car.
Skoda’s warranty is longer than the five-year plans offered by its fellow VW Group brands Volkswagen, Audi and Cupra – giving it an added point of difference beyond making the Group’s most practical fare.
The seven-year term matches the likes of Kia (which was the first-mover back in 2014), plus budget challenger brands MG, GWM and SsangYong.
Mitsubishi offers 10 years of warranty with a 200,000km limit – but this reverts to five years or 100,000km if you don’t service your car within the Mitsubishi dealer network.
Skoda says customers who have purchased a car in the past five years can upgrade their existing warranty with the additional two years – for a price, which varies by model.
Skoda Australia director Michael Irmer said he wants the brand to embody the maxim that “value means more than a sticker price”, referencing criticisms that its prices have spiked lately – the new $37,990 Fabia Monte Carlo being an example.
“Ease of ownership, peace of mind and more metal for the money – these are values on which Skoda prides itself on,” Mr Irmer said.
“Seven year’s warranty is full cover without common exclusions such as infotainment systems or starter batteries.
“We remain intent on becoming a leading brand in the sphere of lifetime ownership experience in Australia.
“… Providing a wholly European vehicle with innovative and emotional product, combined with an ease of ownership is something we are truly passionate about.”
Skoda also offers various prepaid servicing packages for its new and used cars, as well as monthly maintenance subscriptions that cover everything from basic servicing through to covering everything including consumables.
These plans and packs are transferable between owners.