The ACCC is bang in the middle of its consultation process around Mitsubishi’s announcement of its 10-year warranty.
Wow. This is a big one. Mitsubishi Motors Australia has announced its 10-year (200,000km) Diamond Advantage warranty. And we should be fist-pumping, right. Only it seems despite blowing all other car makers out of the water with the decade-long warranty period, the distance component is only 200,000km – most car makers offer unlimited kilometres.
Then there’s the little bit about buyers only getting the full 10-year, 200,000km warranty if they service their new Mitsubishi within the Mitsubishi dealership network. And, if they don’t, then it reverts back to Mitsubishi’s regular five-year, 100,000km warranty. Oh, the other add-ons are 10-year/150,000km capped price servicing (why doesn’t this match the warranty?), and 4-year roadside assistance, again, if they service with an authorised Mitsubishi Dealer.
According to Mitsubishi, the new warranty “puts owners in control”. Hmmm. Not so sure about that. What it does is simply say that you won’t get the full available warranty if you don’t service within the Mitsubishi dealership. But, consumer law states that you can’t void your warranty by having your vehicle serviced by a qualified independent mechanic. So, how is Mitsubishi getting around this? Well, maybe it won’t.
See the Australian Competition and Consumer Commission (ACCC) was made aware of Mitsubishi’s new warranty plan back on 11 September. And, right now, the ACCC is in the middle of receiving submissions from the public (closing on 9 October) and will then give Mitsubishi a chance to respond by 16 October and, after that “The ACCC intends to make a decision regarding the notification in October 2020. This will either be a decision to issue a draft notice to revoke the notification, or a decision to take no further action and allow the notification to stand”.
Has Mitsubishi jumped the gun? Maybe. Is it fair to offer such a substantial warranty offer with the caveat that, to receive it you must keep your vehicle in the Mitsubishi dealership? Will the Australian Automotive Aftermarket Association have something to say about all this, given the potential impact on its members (independent workshops)? We’ve reached out to them to find out. Stay tuned for more, and until then, let us know what you think by leaving a comment.
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