Fleet News

FCM warns that extra warranty means wholelife cost rise

VEHICLE wholelife costs are in danger of being ignored and could rise as fleets continue to debate whether to demand three-year warranties from major manufacturers. Wholelife costs are crucial to the warranty discussion and Fleet Cost Management claims that introducing three-year warranties could result in increasing list prices with wholelife costs rising as a result.

FCM's executive director of sales John Britcliffe said: 'The fundamental question about three-year warranties is whether they will ultimately reduce wholelife costs on the vehicles to which they are applied. Warranties are not a panacea to maintenance and repair issues. The problem with them is that they are not free. Someone pays for them - and manufacturers are not a bottomless pit of funds.'

While three-year warranties are provided by Japanese and German manufacturers leading fleet manufacturers such as Ford, Vauxhall, Rover, Peugeot, Renault and Citroen have fought against such a move. Nevertheless, fleets which have asked for three-year warranties have received them, although the leading manufacturers have invariably reduced fleet discounts as a result. And those manufacturers have consistently said any out of warranty claims from fleets would be viewed sympathetically.

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