Consumers are entitled to a longer warranty when they buy a new car, says FDM, which is now tightening its minimum requirements. In the future, cars with a new car warranty of less than five years will receive a remark in FDM’s reviews.

A four-year-old Peugeot 208 has problems with high oil consumption. The solution is a new engine for around EUR 8,700. In another example, the electric motor and the electric heater breaks at the same time in a three-year-old Skoda Enyaq. The maintenance price: EUR 16,750. These examples are far from unusual and are just some of those that FDM’s legal and technical advisory services regularly receive from members. But even though the two cars are only a few years old, the warranties have long expired.

The warranty on new cars often contrasts with the marketing of the cars’ excellence. Especially for European car brands, the new car warranty has traditionally been limited to just two years. Disappointed consumers are left with, in the worst case, a significant dent in their personal finances.

In recent years, many new car brands have entered the market, especially from China. Common to most of these new brands is that they come with a significantly longer warranty of five years or more.

Expensive defects in newer cars

Up until now, FDM has recommended that car buyers go for cars with a new car warranty of at least three years or 100,000 km. That recommendation is now being tightened, so that FDM’s minimum requirement now is five years or 150,000 km.

“A good warranty is important, because a car is not only a technically complicated product, but it is also often one of the largest investments that many people make with the expectation that the car will last for several years. Therefore, as a consumer, you should also be better protected against production and material defects for more than the two to three years that are currently the norm for many car brands,” says CEO of FDM, Stina Glavind.

“Over the years, we at FDM have seen several examples of defects on newer cars that are due to inherent production or material defects in expensive parts, and where car importers have simply referred to an expired warranty that is far too short, while frustrated and disappointed consumers have been left with expensive repairs or high losses in value. This is not acceptable. That is why we are now tightening our minimum requirements for new car warranties if we are to be able to recommend them. Because if the manufacturers themselves do not believe in their product, why should car buyers do so?” asks Stina Glavind.

Popular brands get longer warranties

FDM will enter into dialogue with the various car importers about the new minimum warranty requirement.

However, there seems to be movement among importers in the area where car brands are moving forward.

Late in December, Denmark’s largest car importer, Semler Gruppen, which imports brands such as VW, Skoda, Audi and Cupra, announced that they are extending their warranty from two to five years or 150,000 km. However, only on electric cars from the four car brands.

According to Semler, this is due to a desire to create additional security among consumers, as CEO of Semler Mobility Import Lars Kornelius stated.

“We only think that our stricter minimum requirements are reasonable, and we can see that several car brands already live up to them today,” says Stina Glavind.

Reduced marks in FDM’s car test if requirements are not met

Going forward, FDM’s car tests will also incorporate the new minimum requirements for warranties. This means that cars with a shorter warranty than the new recommendation will receive a remark in FDM’s assessment. Cars that do not meet FDM’s new warranty requirements will therefore not be able to achieve the top rating of six stars.

“So far, we have marked all cars that could not meet our previous warranty requirements (3 years/100,000 km, ed.), but with our stricter requirements, we will directly let the warranty play a role in the grading. It will therefore not be possible to get the maximum six stars in FDM’s car test if a car does not meet FDM’s minimum requirements for the warranty of five years or 150,000 km,” says Automotive Technical Editor, Søren W. Rasmussen.

In addition, FDM will indicate under pros and cons in the individual test whether the car’s warranty meets the minimum requirements.

“With the increased number of electric cars comes a number of new technical components in the cars, which can be very expensive to replace if they break. Often these are components that you can’t really do anything to look after and care for, so when they break, it is usually completely through no fault or responsibility of the car owners. This is precisely why it is so important that the factory warranty is as long as possible, and that it does not exclude or limit coverage for the important and expensive parts,” explains Søren W. Rasmussen.