Alfa Romeo and Fiat customers are to be offered an incentive package that effectively provides a full five-year guarantee on all its new vehicles.
The introduction of the extended guarantee period is part of a Europe-wide campaign by Fiat's Italian parent company and will be the first of its kind in Ireland.
The incentive is expected to increase Fiat's presence in the Irish marketplace. Currently it has about 3.9 per cent of the market share, while Alfa Romeo accounts for just under 0.5 per cent. Take-up of the new deal will boost residual values and confidence in the brands - neither of which have been Fiat's strong points.
If the move is seen within the industry as a success when it is introduced in the New Year, it is expected other Irish car importers will introduce similar packages.
Fiat Auto Ireland confirmed the incentive as the newly established BMW Group Ireland also announced that it has introduced a five-year maintenance package on its new 5-Series. The BMW package offers customers of its new 5-Series the opportunity to pay in the region of €1,000 and then not to pay for any servicing or associated parts costs for the next five years or 100,000km.
While both the deals seem to be offering good value, they do also encourage customers to return to their dealers to get their cars serviced.
Until now, all new cars have had to be serviced through the dealer network in order to comply with warranty obligations. However, with the recent changes to EU competition law, motorists can have their cars serviced at authorised service centres which may not be tied to a dealership without affecting their warranty.
Although Fiat could not confirm final costs and details such as to what exactly will be covered by the guarantee, managing director Michael Howe did say that the package is "exceptional value and will offer the customer full peace of mind".
Unlike the BMW offer, if a Fiat customer trades in a car before the five years have expired, the monetary value of the guarantee can be offset against a new car purchase.
Not surprisingly, as the management and associated costs of the scheme are being met by Fiat, dealers are extremely happy with the announcement.