The rundown
Isuzu is offering customers the opportunity to buy an extended warranty when buying new trucks. When customers buy an Isuzu truck, they do get a standard two-year warranty. However, now, when buying a new Isuzu truck, customers can extend their warranty for a small cost – anything from R5,000 to R7,500 depending on the model.
If a failure occurs, and the customer has maintained the truck according to the stipulated servicing schedule, Isuzu will ensure that the issue is resolved and return the truck to its original specification.
Customers need to elect to purchase the extended warranty at the same time as they purchase the new vehicle. So, for example, if a customer buys a truck today, an extended warranty cannot be purchased six months down the line.
Why is it appealing?
Craig Uren, Senior Vice President: Revenue Generation at Isuzu, explains that the company is committed to helping its customers keep their trucks on the road for longer. “With the extended warranty on offer, for a nominal upfront cost, you are getting more than double your normal warranty,” he points out.
An extended warranty can be appealing for any number of reasons. For instance, it provides fleet owners with a predictable budget for maintenance and repairs. It covers the cost of unexpected repairs that may arise during the warranty period, reducing the financial burden on the fleet owner.
Furthermore, trucks are a crucial asset for fleet owners, and any downtime can result in significant revenue loss. With an extended warranty, repairs are often expedited, minimising the time the truck spends off the road. This helps fleet owners maintain their operational efficiency and meet their delivery schedules.
Extended warranties often offer coverage for a broader range of components and systems than standard warranties. This can include major engine and transmission components, electrical systems, emissions control systems, and more. The extended coverage provides fleet owners with peace of mind and protects them from potentially expensive repairs.
“The warranty guarantees the truck against breakdowns and mechanical failure for its duration, as long as the customer correctly maintains their truck according to the maintenance schedule in the owner’s manual,” explains Uren.
Is it really a good deal?
But is this a good proposition for transport operators – or just a marketing ploy? In order to answer this question, we turned to FOCUS on Transport & Logistics columnist Jim Ward. He entered the transport industry as a regional technical manager in 1987 and ultimately worked his way up to general manager technical for a leading logistics company. Ward is now a consultant to the industry – and he’s totally independent. Meaning, we could rely on him for a truly honest opinion. Our question was this: is it really such a good deal?
Ward believes that, for Isuzu offering this warranty expresses confidence in the durability of the brand, and a belief in the company’s own dealer network. “An extended warranty offers operators protection against unplanned maintenance cost spikes that often plague vehicles when skies begin to grow dark, sometime after the 400,000km mark. In some cases, manufacturers have been known to offer extended warranty cover that ingeniously covers all the things that hardly ever fail, but conveniently exclude most of the components that are likely to fail based on life cycle costings, but this looks like an attractive offering that provides genuine protection for the operator.
“It is easy to be cynical about manufacturer's warranties, but this seems like a genuine attempt to further consolidate a powerful position in the market, and build onto an existing strong reputation and following. Used Isuzu rigids have always been strong sellers at commercial auctions, and a truck that has had this extended warranty from new will still be an attractive proposition for new entrants to the industry. As a friend of mine used to say whenever we were staring at a gift horse, ‘it’s a no-brainer’. This is a bold, strategic move in an acutely competitive market,” he concludes. So, there you have it; it’s a great deal!
