Toyota introduces five-year new car warranty

Toyota has responded to increasing industry and consumer pressure by announcing a new five-year/unlimited kilometre warranty as standard on vehicles it sells in Australia.

Mirroring similar moves from the likes of Holden, Mazda, Volkswagen and Subaru in recent months, Toyota’s decision leaves Nissan as the only top 10 car-maker to stick with outdated three-year/100,000km provisions.

Toyota’s extension from three years to five years will apply to all new vehicles sold from January 1, 2019, across petrol, hybrid and diesel variants.

In a bid to appease tougher consumer expectations partially brought about by spotlight from the Australian Competition and Consumer Commission, Toyota and its dealers say they will cover the cost of towing and a loan vehicle if an owners vehicle requires a warranty repair and is undriveable.

Toyota says further factory coverage will be available "for vehicles that undergo scheduled log-book servicing, including up to seven years for the engine and transmission".

"In a move designed to drive greater value, confidence and loyalty for Toyota owners, the Toyota Warranty Advantage includes unlimited kilometres for private buyers and 160,000km for vehicles used for commercial purposes," the car-maker said.

"Owners of new vehicles are entitled to a full refund for any failure that prevents the vehicle being driveable within 60 days of collecting their new vehicles. This 60-day money-back guarantee also applies where there have been multiple unsuccessful attempts to repair a vehicle."

Toyota’s move will be met with some criticism from consumers, who argue Australia's most popular brand has rested on its laurels in recent years. In the face of continued scrutiny, Toyota said in August that it had "no plans" to extend its factory warranty provisions.

Speaking with journalists at an event in Melbourne, Toyota vehemently argued it was not "following the pack", but simply responding to the needs of customer.

Cross-town rival Nissan Australia declined to comment on its future position regarding warranty. In August, the car-maker said it was conducting a review of its aftersales process.

"At the moment we just don’t have any comment to make on that," a spokesman said today.

Under its new provisions, Toyota says warranty for hybrid batteries can be extended to 10 years/unlimited kilometres with an annual hybrid health inspection carried out as part of normal 12-monthly servicing from the fifth year.

Toyota will continue its capped price servicing program in Australia, albeit at shorter intervals than many key competitors.