Know your rights

ONE of the modern marketing strategies for new cars is to extend their warranty period. Most car buyers are mistaken to think that with an extended warranty, they could be driving for years free of worries and repair charges.

Not so. Read the fine print.

First, what is a warranty? A warranty is an offer by the car maker to replace, repair or do whatever is necessary to put right a legitimate problem with your car. This is opposed to a guarantee which means a full replacement or refund should anything not work properly. A warranty is necessary because a car has more than 3,000 parts. The warranty is a form of insurance for new car owners in case any part fails to perform as designed.

At the time of collection of your new car, the sales person would hand over to you a booklet of documents. The current warranty books come separately. There is a master copy on the car itself issued by the car maker. Then there are separate warranty booklets from the major system suppliers – air conditioner, audio and alarm. There should also be a list of all the authorised workshops with their respective full addresses and contact numbers.

Make sure you have all of them and that they are properly stamped by the sales outlet. Your personal particulars are usually recorded down and a copy sent by the sales outlet to the respective suppliers on your behalf. Keep these booklets safely and not necessarily in the car until you send it for servicing or repairs. Write the vehicle number on the cover of all the booklets in case they are accidentally swapped by the service advisor as he may be handling a few cars of the same model at the same time.

The warranty period starts on the day you collect your brand new car. It is imperative that you fully check the car when collecting it. Never hurry no matter how eager you are to drive the new car away from the showroom. Reject the car if you find serious problems like dents, scratches, broken or rusty parts until the faults are rectified. You may lose a few days of driving pleasure but once you collect the car, the blame can be passed on to you if you are not careful. Bring along friends and family members to help look for problems.

If you so badly need to use the car despite the numerous problems, have the faults written clearly in the acknowledgment form so that it proves the faults were there at the time of collection. Have the salesman signed a copy of the list of complaints and returned it to you for reference. There are many cases where the car leaves the factory in tiptop condition but along the way to the showroom and later, to you, some faults have surfaced or some scratches, dents or smudge marks are found on your car.

Next is to have the faults rectified as soon as possible. It is not necessary to wait for the first free service because the workshop will have less time to rectify the faults. Make sure that the faults have been rectified to your satisfaction. Do not hesitate to bring the matter to the car maker directly if the problem persists or the authorised workshop has not done a good job.

You, as a consumer, have every right to a satisfactory redress. However, do not forget to bring the warranty and service record booklets to the service centre as it needs to record all work done on your car.

On the other hand, no car is perfect. With over 3,000 parts supplied by hundreds of vendors, there is bound to be some imperfections. Even engineering drawings have tolerances. It is up to you to decide how tolerant you want to be with the new car’s imperfections. While many new car owners are not concerned about the different size gaps of the bonnet, some are so particular that they demand a brand new dashboard if they find a small dimple or stain on its surface.

One of the most common mistakes of new car owners is to send their cars for upgrading immediately. Fitting low profile wide tyres and extra large wheels, body kits, sports filters and other accessories may cause the new car warranty to be declared null and void. Read both the car handbook and warranty booklet slowly and carefully. You will be surprised to see the many disclaimers that give the car maker the right to refuse rectifying faults that are deemed to be the result of your neglect, unauthorised addition or modification job on the car. Any modification is best done after the warranty period. There is also a valid reason for this. Modern cars come with more electronic controls and circuits. Installation of high electrical consumption equipment like booster amplifiers can upset the fine and sensitive systems.

Then there are those new car owners who change the seats and steering wheel to leather without realising that some cars come with airbags. It would therefore be a dangerous decision.

The irony is that the car makers can add the same accessories that you can also buy outside (like audio systems, spoilers, side skirts, sports wheels, etc) without affecting the warranty but not when you buy your own. Their advantage is that the supplier undertakes in writing to cover the car’s warranty if any of their components affects the car. If you are tempted to convert your new car into a mobile disco, think twice or at least until after the new car warranty period is over. If you are adamant about upgrading the audio and alarm systems, for instance, then you should insist on a warranty from the installer that includes an undertaking that should the newly installed system affects the rest of the car’s systems and the car maker refuses to entertain your claims, they will pay for repairing the car. When a new car catches fire, for example, car makers will not entertain claims if they find any part of the original system has been tampered with. The alternative is to have the system upgraded by the authorised car sales outlet itself as car makers have clear policies on what they can and cannot do to the new cars.

Certain upgrades like mobile steering locks and glass tinting do not affect the warranty.

You are also obliged to keep your vehicle in tiptop condition. Take the paintwork for instance. If you do not immediately apply wax or remove bird droppings that cause damage to the paintwork, the car maker will not rectify the fault for free even though your car can be just a month old.

Another word of caution is the pro-rata warranty. Certain components that wear out – batteries and tyres – will only be compensated proportionate to the length of usage. If the battery is flat within three months on collection of vehicle and the warranty for the battery is six months, you will only get a 50% rebate on the cost of the new battery sold by the authorised workshop. However, it is on the condition that you top up the battery water regularly and not let it dry up or operate the car with a faulty charging system that fails to charge up the battery properly.

Therefore, you must have the vehicle serviced only by the authorised workshops during the warranty period. The car makers are of the opinion that only authorised workshops possess the properly trained personnel, equipment and parts to service your new car. There is always a service booklet with records of servicing visits. If in doubt, you should not hesitate to phone up the service advisor from your nearest authorised workshop for advice.

In case you have a breakdown and there is no authorised workshop around, the best action is to have the car towed to the nearest authorised workshop. Otherwise, go to a workshop that is recognised by established organisations like the Automobile Association of Malaysia (AAM) or your car insurance company. This is vital in case of a dispute later on. Remember to have all problems, invoices, correspondences and receipts in black and white to prove your claims.

In extended warranties, it simply means that you are tied up with the authorised service network for a longer period. Modern cars may just need simple maintenance services like engine oil change, oil filter change, air filter change and checks on the fluids and brake system. All these are non-critical jobs and any competent and experienced mechanic can do a good job. Wheel alignment and tyre balancing can also be done outside.

You have to weigh the costs of signing up for an extended warranty. While your car would get full backing from the car maker, you may end up paying more for the services and parts changed by the authorised workshops. If you choose to go the safe and hassle-free way, then sign-up with the car maker’s offer of extended warranty. If you are a more experienced motorist with lots of experienced mechanic friends and willing to take a risk, the basic warranty period should do.