WHAT IS WARRANTY ?

In contract law, a warranty has various meanings but generally means a guarantee or promise which
provides assurance by one party to the other party that specific facts or conditions are true or will
happen. This factual guarantee may be enforced regardless of materiality which allows for a legal
remedy if that promise is not true or followed. Although a warranty is in its simplest form an element of
a contract, some warranties run with a product so that a manufacturer makes the warranty to a
consumer with which the manufacturer has no direct contractual relationship.
A warranty may be express or implied, depending on whether the warranty is explicitly provided
(typically written) and the jurisdiction. Warranties may also state that a particular fact is true at one
point in time or that the fact will be continue into the future (a "promissory" or continuing warranty).
CAR WARRANTY
United States
New car factory warranties commonly range from one year to five years and in some cases extend even
10 years, with typically a mileage limit as well. Car warranties can be extended by the manufacturer or
other companies with a renewal fee.
United Kingdom
In the United Kingdom, types of warranties have been classified as either a:
1. Original manufacturer warranty,
2. Insurance warranty underwritten and regulated as insurance or
3. Obligor warranty, typically written by a car dealership or garage.
In the United Kingdom, the Financial Services Authority (FSA), which began to regulate insurance
contracts in this context in 2005, determined that additional warranties sold by car dealerships are
"unlikely to be insurance". Insurance warranties may offer greater protection to the consumer.
WHAT IS THE DIFFERENCE BETWEEN WARRANTY AND GUARANTEE
The necessity of a guarantee emerged as a means of protection to safeguard the right of the consumer.
With the strength of the guarantee, a seller is liable to make the complete replacement of the
purchased item, in case it was found to be below the prescribed standard. This is given by the seller or
the manufacturer of a product to the customer and remains valid for a fixed period. The guarantee is a
legal instrument irrespective of whether the customer paid for the article or not.
Likewise, the warranty is also an instrument to safeguard the rights of a consumer. It requires payment
on the part of the customer to make it legally viable as in the case of an insurance policy. With the
strength of the warranty, the seller or the manufacturer is liable to face the judicial courts if the seller or

the manufacturer fails to comply with the provisions of the warranty on their part. Warranty is only
relevant to the repairing of articles.
A guarantee is generally given by manufacturers whereas the warranty is provided by most of the retail
sellers or distributors. In a case of motorcycle purchase, there is the guarantee from the manufacturer
and the seller has to provide the warranty on the vehicle from his part.
The main difference between guarantee and warranty lies in the dissimilarity of expectations in both the
cases. Generally, it is believed that one can get his money back with the strength of a guarantee, if the
product is defective or does not provide the assured standard. Warranty, on the other hand implies the
provision of getting the article repaired if the product is defective. The most common in the recent
period is the use of a limited warranty, which places conditions on the parts of an article, the quality of
damage incurred and the time period of validity of the document. Naturally, the expectation in a
warranty is reduced by the expression they use in the warranty document and hence the expectations
are minimal. Therefore there is a vast difference in the essence and spirit of guarantee and warranty
which the consumer must understand before expecting the benefit of such a document on the purchase
he makes.
Summary
1. A guarantee is always free. A warranty attracts charges as the insurance policy.
2. The guarantee is a commitment to make good defects of a product or a service in a fixed period. A
warranty looks after the repairing of a new article within the validity period.
3. A guarantee is a legal contract without any payment. A warranty received on payment is also a legal
instrument with which the seller can be brought to books.
4. A guarantee is an addition to the legal consumer rights. A warranty does not affect the rights under
the consumer act.
5. A guarantee is applicable irrespective of the provision of the warranty. A warranty is free to go
together with a guarantee issued on the same article.

DIFFERENCE BETWEEN CAR INSURANCE AND CAR WARRANTY

Its often not initially clear to most people what the difference is between car warranty cover and car
insurance cover, and often they are thought to be one and the same. But they are significantly different
forms of consumer protection and they can cover different things, although there may be some overlap
at times. However, usually they are distinct and discrete products, and each is aimed at protecting you
and/or your car in different ways.

Parts Guarantees: Car Warranty

Basically, anytime your car has a part that malfunctions due to no fault of your own, and no other
outside force acting on it beyond a reasonable level, then it will be the warranty that covers it.
Essentially, a warranty will ensure that your car parts do what theyre supposed to do for the length of
time theyre supposed to do them. If one of them fails due to no fault of your own, you can and should
get it replaced for no charge as determined by your warranty.
Accident Protection: Car Insurance
Unfortunately, some events occur to cause damage to your car beyond the proper functioning of parts.
Car insurance is important for making sure you are covered if your car causes damage to someone elses
property. Sometimes you cant prevent such things from happening, so its obviously pretty important
to make sure you have insurance to take care of these expenses if it does happen, so you dont have to
pay huge sums out of your own pocket.
Failures Causing Accidents: The Importance of Each Type of Protection
Of course it gets more complicated when you start talking about a situation such as the brakes failing in
your car which leads you to rear-ending another car. This is a good illustration of the potential overlap
between your car warranty and your car insurance, since the warranty should cover the brakes, but it
wouldnt cover the damage you have done to the other vehicle.
Types of Car Warranties: Basic
All new cars come with a manufacturers new car warranty, which in Pakistan will usually run from 2
years. Some used cars may come with a manufacturer used car warranty as well. A manufacturers car
warranty will cover most components in your car in case they break down early on in your cars life.
However, there are usually certain exclusions, and a manufacturers car warranty doesnt cover wear
and tear items like tyres, batteries and so on.
Extended Warranty
Its always an important decision whether or not to purchase an aftermarket extended warranty for
your car. There are many different providers you can choose from, and its a good idea to look into each
of them before you commit to anything. The contracts for each warranty can be complex, and the cover
is usually less comprehensive than the manufacturers new car warranty. This type will cover vehicles
for a certain period after the manufacturers warranty ends. You cant always get this type of warranty,
but it can certainly help when you can. The cost is usually lower for newer vehicles, and the level of
cover is usually better as well. As cars get older, the cost of aftermarket warranty policies usually go up
and the level of cover tends to go down, as older cars tend to have more problems and therefore
represent a higher level of risk for the warranty provider.

TOYOTA WARRANTY
Toyota Indus Motor , provide its customer through its country wide dealerships two years warranty or
50000km running for new cars to its customers. Below Corolla Altis Grande advertisement is shown , in
which arrows are pointing towards two years warranty .

WHAT WARRANTY COVERAGE DO A CUSTOMER HAVE ON HIS NEW TOYOTA VEHICLE?

Basic Coverage
24 months/50,000 km (all components other than normal wear and maintenance items).
Windscreen
1 month/4500 km after the (date of delivery).
Rust and Paint
1 month (date of delivery).
Battery
1 year (date of delivery)
After warranty is over customer can extend his warranty cover by paying charges . These measures are
taken as trust building measures.
HOW NEW TOYOTA VEHICLE CAN VOID BEFORE STIPULATED TIME OR VEHICLE RUNNING
MODFICATION
Here modification infer , that a customer replace company fitted light , tape recorder or other
accessories with local accessories. If any problem occur in vehicle, and Toyota master technicians
founded that problem occurred due to replaced accessory Toyota will not repair it. For instance, a
customer came to dealership and complained to advisor that my car wiring burn out. Advisor asked
technicians to find the root cause. Technicians found, car wiring burn out because of local market \other
then toyota motors/ buffers . Advisor convey this information to customer and apologized that this
problem cannot be rectify in warranty cover.
TRACKER
Any damage occur due to tracker in the car company will not repair it under warranty.
COLLISION
DAMAGED/BROKEN
PROCEDURE FOR WARRANTY
Customer show his warranty booklet to service advisor.Service advisor refer case to warranty
department in the dealership . Then warranty department ask surveyor who is technician to find the
root cause of problem .With technicians and customer input Technical Report is generated. Then
technical report is forwarded to Toyota Indus Motors for their permission to repair. If Toyota Indus
Motor permit dealership to repair .Then dealership instantly start repairing. Technical Report format is
shown on the preceeding pages.Warranty booklet is shown on next page.

WARRANTY BOOKLET,WHICH IS PROVIDED TO CUSTOMER AT THE TIME OF CAR DELIVERY

WARRANTY BOOKLET CONTENT SHOWN , ALL THE DETAIL OF WARRANTY AND OWNERS RESPONSIBILTY
IS MENTIONED IN BOOKLET

WARRANTY BOOKLET,CONTAIN ALL THE DETAIL OF CUSTOMER SO THAT CUSTOMER CAN BE

FACILATED AT ANY DEALERSHIP

INCASE OF SALE OF CAR , OWNERSHIP OF CAR IS UPDATED ON WARRANTY BOOKLET

FREE 1,000 KM MAINTENANCE IS PROVIDED TO CUSTOMER AS A TRUST BUILDING MEASURE

REE MAINTANEANCE

PLACE FOR CAR PERIODIC MAINTENANCE SERVICE RECORD IS GIVEN IN WARRANTY BOOKLET

TECHNICAL REPORT FORMAT

IF , PROBLEM OCCURRED IS NEW FOR DEALERSHIP , WHICH OCCUR MOSTLY IN NEW CARS THEN
EARLY DETECTION REPORT /EDR/ IS GENERATED.
Whole procedure of car repair under warranty cover as aforementioned is same, but technical report is
replaced by Early Detection Report . EDR format is shown below

HIGHLIGHTED PROBLEM AND THEIR PROPOSED SOLUTION

There is no provision of tracker with the new car . If customer buy any car he will install tracker from any
local company . Which is compromise with the safety of car. But customer has no chance because
security of the car is on the line. Considering the law and order situation of country and increasing car
theft Toyota Indus Motor should provide tracker choice to customer as it provide choice of the colour
body.
Secondly , data should be centralized means it takes too much time for warranty department to find the
problem in new cars which is unknown to technicians .If EDR reports will be uploaded on centralized
data then lot of time will be saved. So that cars repairing process will swiftly be started.