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Hyderabad-based multi-brand car service network "CarZ" has partnered with "Corporate Warranties India Pvt. Ltd." to launch extended warranty plans. It will be available for all car brands that are sold in India. Currently, CarZ has outlets in 11 cities in Andhra Pradesh & Karnataka.

The Extended Warranty Plan:

The Extended Warranty Plan (EWP) will cover the cost of repair, component replacement and labour charges.

It's available under three programs – Platinum, Gold and Silver, which will apply based on the car’s age and mileage. According to the CarZ website, the breakdown is as follows:

• PLATINUM: Comprehensive warranty coverage applicable for vehicles aged less than 4 years or covered less than 60,000 kilometres from date of sale
• GOLD: Semi-comprehensive warranty coverage applicable for vehicles aged between 4 to 5 years or covered less than 80,000 kilometres from date of sale
• SILVER: Basic drive line coverage applicable for vehicles aged between 5 to 6 years or covered less than 1,00,000 kilometres from date of sale

Based on the selected option, the plan will cover the Engine, Gearbox (Manual or AT), Braking system, Diesel Injection System, Electricals, Fuel System, Propeller shaft, Axles, Suspension & Steering System. CarZ service advisors will be able to provide a more detailed breakdown of components covered under each system.

Points to note

• To avail of this warranty, the customer has to ensure & demonstrate that the vehicle has been serviced at prescribed intervals and maintained through the CarZ outlets.
• As of this moment, the EWP plan is unclear on the deductibles that the customer will have to bear for each claim.
• The maximum upper limit beyond which the coverage will not apply is 1,00,000 kilometres and 6 years of age.
• The average warranty offered by car manufacturers is for 2 years (standard) + 2 years (extended). The Gold and Silver program effectively offer extended warranty over and above the 2+2 years manufacturer warranty. Most car owners service their vehicles at the authorised dealership during the initial 3 - 4 years of ownership. It's obvious that CarZ is targeting the service & maintenance market post this period.
• All claims will be settled by Corporate Warranties India directly with CarZ.
• The warranty is transferrable to another owner in case of vehicle sale.
• Please read the terms and conditions on the booklet very carefully.
• Is this deja vu for Corporate Warranties India? What Car offers Warranty.

Prices

Warranty rates are based on the engine displacement and fuel type:


Related Threads
Extended Warranties. Yes or No?
Indian Car Warranties : The best, the average and the worst!

The Banner shows their website as www.carz.co.in. This site is not working anymore. Their new website is CarZ | Home > Multi-brand car repairs and servicing | car denting & painting | car wash - Hyderabad

While its a good move, I don't see many people opting for this warranty.
Most of the car manufacturers offer extended warranty programs. Since the plans offered by Carz is only applicable till 1 lakh kms or for cars less than 6 years old, I do not see the benefits of this warranty.

What happens if a car with the warranty is serviced at the ASC instead with Carz, will they reject the claim for warranty.

^^ I think, on the contrary, that there is a huge market available, with people who did not opt for extended Warranties upfront, or have expired warranties, and they would love to jump at this offer. The pricing seems sensible enough to start with.

I'd say, this is a very welcome move in the industry.

Though I'm a huge believer of extended warranties, I have my reservations on this scheme (for customers & CarZ, both).

First, on a brand new car (where the probability of part failure is minimal), manufacturers usually charge 4,000 - 6,000 per year for extended warranty coverage. CarZ's pricing for a typical C-segmenter sedan is either the same, or cheaper. It is simply unsustainable. One significant part failure (e.g. alternator or air-con compressor) and either CarZ undergoes a loss, or the customer doesn't get that part replacement he deserves. The pricing should have been more realistic where it's a win-win for both, supplier & client.

Offering extended warranties makes good business sense for a chain like CarZ. Just like a new car warranty lock you into using the authorised service network, CarZ hopes to enhance customer loyalty through its extended warranty program.

I'm not too sure of the numbers though. A small % of new car owners ever buy extended warranty. Those who will purchase the same from a 3rd party organisation like CarZ are even more limited in number.

Hi

Recently I came across this interesting article in another automotive forum JALOPNIK. (One of the dozens I read to get my "car fix" everyday:))

It seems over there in the United states of Americaland there is a used car retailer "CAR MAX" having branches all over the country who offers warranties on their used cars. And its not just corollas and civics, stuff that obviously will not break and cheap to maintain but hugely unreliable but ridiculously desirable cars like AMGs and Range rovers.

Here a link to the articles about Car Max I found on the forum.

http://dougdemuro.kinja.com/why-your...m-ca-814250605

http://dougdemuro.kinja.com/the-cool...x-w-1570429114

I was just wondering whether any such establishments exist here in India.

Just think about it. If a 5 year old out of warranty e class can be brought for VW jetta money with another 5 year warranty on it, why wouldn't you have a go at it? I know I certainly would.