New Toyota 10-year warranty to boost service retention

  01 June 2021

Toyota is to cut its standard warranty to from five years to three – but offer free one-year warranties with annual servicing for cars up to 10-years-old in a bid to improve customer retention and increase used car business, according to Auto Retail Agenda sources.

The new warranty is expected to be launched on 1 June.

Toyota currently operates a five-year, 100,000-miles warranty. Under the new plan, it is understood customers returning to the franchised network for annual servicing after the standard three-year warranty is up will be given an extra year’s warranty. The offer will apply until the car is 10 years old.

While longer warranties provide consumer confidence for new car buyers, they have traditionally been poor at keeping customers within the franchised network. The Toyota offer aims to counter this aspect.

imageTags: Toyota

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