Kia announces five-year warranty

The new warranty cover applies to vehicles purchased since January 1, other than the remaining dealer stock of the K2700 truck, for which the original three-year/100,000km warranty remains in force.

With this news, Kia has matched the new car warranty cover of its parent company, Hyundai.

The extended warranty cover is a sign of Kia's emerging confidence in the brand's quality and reliability, bolstered by an increased sharing of platforms and drivetrain components between the two companies. It's also a way of Kia addressing one long-standing stumbling block hindering the ready market acceptance of the brand in Australia. That is resale value.

As Kia sees it, being able to sell a car after three years of ownership with two years of new car warranty cover remaining, will enhance the car's appeal within the used car market, boosting retained values and, in turn, encouraging new car buyers to consider the brand -- content that they will see some capital return when it's time to sell the car.

"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", said SK Lee, President and CEO of Kia Motors Australia.

"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."

"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", Mr Lee said.