Volkswagen has upgraded its warranty coverage to five years.
Volkswagen has upgraded its warranty coverage to five years. Chris Benny Imaging

Volkswagen joins warranty battle with five-year deal

FIVE-year unlimited kilometre warranty coverage has been confirmed for all new Volkswagens.

Launching the initiative with sister brand Skoda, Volkswagen is the first German marque to adopt the five-year coverage - most other marques offer protection for three years.

Kia, along with fellow Korean brand SsangYong which has just announced its return to Australia after a two-year hiatus, has the longest new car warranty at seven years and unlimited kilometres.

Australia's most popular brand, Toyota, remains at just three years or 100,000km. Prestige marques including Mercedes-Benz, BMW, Audi (VW owned) and Lexus all have three-year warranties.

Hyundai was the first brand in Australia to offer new-car buyers the peace-of-mind of a five-year warranty, launching the extended coverage in 1999 when the rest of the market gave just three years' protection from manufacturing faults.

It has remained at five years, as has Mitsubishi since 2004. Also offering five-year coverage are Mazda, Holden, Ford and Honda.

Nissan remains at three years, but has offered five-year coverage on special deals this year.

Kia has intimated a 10-year warranty would be considered if a chorus of brands improve their product backing.

"If someone has the same conviction in their vehicles as we do with ours and comes out with a seven-year warranty across the range, we'll look to reinforce our position," Kia chief operating officer Damien Meredith said earlier this year.

"We'll go 10 (years) but we'll beat the European deal by continuing with the unlimited kilometre component."

Volkswagen customers who had cars delivered before October 1 can buy an extra two years warranty at any time prior to the expiration of their three-year factory coverage.

"Making the five year warranty permanent assures newcomers to the brand that they can buy with confidence," Volkswagen's Jason Bradshaw says.

"In addition, they can fix their ownership costs with a Volkswagen Service Plan that costs as little as $1137 for three years and less than $2000 for five years.

"The business has gauged reaction to its five year warranty campaign and so decided to implement it on an ongoing basis."

One year of free roadside assist comes with every Volkswagen. Buyers who service their cars with Volkswagen dealers can extend their roadside assistance each year.