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Factory Five-Year Warranty Expected To Boost Kia Resale Values



22nd February, 2008

Kia Carnival EX

"As larger volumes of Kia's 2008 model range start filtering into the market, expect to see Kia resale values begin to rise ....."

That's the message from Mr SK Lee, President and CEO of Kia Motors Australia, following the company's recent announcement of a full five-year factory-backed warranty for all new Kia vehicles sold since 1st January 2008.

"Kia vehicles have rapidly been achieving greater quality and reliability in recent years, matching the now-legendary Kia value story," said Mr Lee.

"Indeed, the 2007 Initial Quality Survey by highly-regarded research firm JD Power and Associates in the USA showed Kia above the industry average ranking and that Kia had out-performed some more highly recognised brands.

"Greater quality and reliability attracts more confidence from buyers and has led to demands from both buyers and dealers for a factory five-year warranty. We know our brand is growing in Australia so, of course, we wanted to make our dealers and customers happy by introducing the five-year warranty this year."

"The new five-year factory warranty will bring added confidence to both private and business buyers. For instance, private buyers who want to sell their car after three years can anticipate getting a better return and will know that the new owner still has the protection and value of the remaining two years factory warranty."

"Business owners and fleet managers know the value of transferable factory warranties when vehicles reach the end of a lease. We expect Kia's new factory five-year warranty will over time lead to a boost in residual values and strengthen the market for used Kia vehicles."

The factory five-year warranty was announced on 1st February 2008, but backdated to 1st January 2008, and applies to all new Kia vehicles including the Rio, Cerato and Magentis passenger cars; the class-leading Carnival and Grand Carnival people-movers; the Sportage and Sorento SUVs; and the forthcoming K2900 CRDi light truck.

All new Kia vehicles sold since 1st January 2008 will be covered by a five-year factory warranty. For private buyers, the five-year warranty has an unlimited kilometre range, while business and government owners will have a maximum 130,000km limit.

"We now have a better warranty than the majority of new cars sold in Australia. Provided the servicing requirements have been met, the warranty is fully transferable to a new owner should the vehicle be sold during the warranty period, further enhancing the vehicle's value."

In addition to new vehicles, all Kia approved parts and accessories fitted prior to, or at the time of, delivery of a new Kia vehicle will also be covered by the same warranty applying to that vehicle.

The exception to the new five-year warranty will be the few remaining stocks of the K2700 light truck which will retain the previous 3-years/100,000kms warranty.

Full details and conditions of Kia's five-year factory warranty are available from Kia dealers around Australia.

Other Kia content: here.

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