Nissan warranty reinforces permanence in Oz

NISSAN Oceania vice president and managing director Andrew Humberstone has told GoAuto that the brand’s decision to offer the most comprehensive new car warranty in the country is one that reinforces its commitment to Australia – and to Australian customers.

Speaking at the launch of the MY25 Nissan Qashqai in Melbourne this week, Mr Humberstone said the Nissan More 10-year/300,000km warranty program will contribute to factors already in play – including Nissan Finance and Nissan Intelligent Choice certified used-car program – to improve customer retention and the residual values of its vehicles.

“The focus (of the Nissan More program) was on the customer; and delivering the best possible outcome for our existing customers,” he said noting the backdating of the Nissan More program to vehicles purchased after January 1, 2021.

“We know what our warranty cost is, and to be honest, those cars that have already been out there for four years, we know what their cost is. So it was much easier to extrapolate what that (the program) is going to cost in the future as well.

“The accounting methodology was the difficult part of what was an otherwise simple decision. It took quite a long time to put it together, because we wanted to deliver the best solution for our customers, and one that would improve the residual value of their vehicle.”

The service-activated offer extends to both private and commercial customers and includes up to 10 years’ roadside assistance and five years’ flat price servicing when servicing within the Nissan network.

Mr Humberstone explained how, in conjunction with the Nissan Intelligent Choice used-car model, the benefits of Nissan More would be passed down the line to those buying used – while at the same time reinforcing the point that both private and business buyers would be treated equally under the program.

“It gives you a better option when you buy a second-hand car … and it helps buyers to stay within the brand,” he added.

“It was very important to us that we offered the program across the entire vehicle range. We didn’t want to alienate certain buyers in the same way some warranty programs do. We were quite conscious of that.

“We want our customers to be satisfied with the brand. To keep them engaged – and to keep them coming back.

Mr Humberstone told GoAuto that it was his wish Nissan customers would see the program not only for its benefits, but for the commitment it demonstrates to the Australian market, despite the obvious cost to the business.

“If I am to be fully transparent, it is a massive commitment for us. It is very expensive. But it will resonate with a lot of customers – which is what it is meant to do,” he stated.

“We are very passionate about this. We know it has real value. We sincerely hope we see a positive reaction by our existing customers, and potentially draw new customers to the brand.

“It is the right step. It is valuable. It is sincere. It also forms part of the narrative that we are here to stay.

“We are committed to the Australian market. We are committed to the region. If there was any doubt about this, then we certainly would not be making the kind of commitments we are making.

Nissan says its flat price servicing program can save owners up to $1145 over the five-year period, depending on model.

Juke, Pathfinder, Qashqai, and X-Trail owners will pay $399 per service while Navara, Patrol, and Z owners will pay $499 at each service interval. Leaf owners will pay $349 per service.