Volvo Australia to introduce five-year warranty

Volvo Cars Australia is the latest luxury marque to extend its new vehicle warranty in Australia to five years.

Weeks after Mercedes-Benz announced a five-year/unlimited kilometre provision, Volvo officials have confirmed plans with carsales to raise the new car factory warranty from three years to five years in the coming weeks, following feedback from customers and the industry.

Volvo Cars Australia spokesman Greg Bosnich said the extended provisions were to be backdated to all Australian vehicles purchased after April 1, 2020.

"It is the intention of Volvo Car Australia to move to a five (5) year factory backed warranty," Bosnich said.

"We are in the final stages of resolving the necessary documentation required to facilitate that intention. When completed, the commencement period of the five (5) year factory backed warranty will be backdated to 1 April, 2020."

In a move that mounts additional pressure on luxury marques such as BMW and Audi - who are so far sticking with ageing three-year warranties - Volvo's extension marks another handy incentive for its customers in Australia.

In September last year, the Swedish car-maker made sweeping revisions to its servicing price structure, virtually halving the capped price servicing rates over three years.

Then in January, Volvo Cars Australia slashed the price of its evergreen XC90 SUV by as much as $15,000 in a bid to deliver more transparency to customers - specifically, between the advertised price of a vehicle and the negotiated price.

Volvo's anticipated warranty extension follows mass adoption of five-year provisions across mainstream marques in 2019, including quasi-luxury brands such as Volkswagen.

Earlier this week, Jaguar and Land Rover both announced promotional five-year warranty schemes on select vehicles purchased between April 1 and June 30, 2020.