Toyota and Lexus have launched an industry-leading warranty program that offers up to 10 years of warranty on new and used cars, vans and pick-up trucks.
The “Relax” program adds a one-year warranty to a vehicle every time it is serviced by a Toyota or Lexus dealer. There are no additional costs for the program, maintenance costs are unchanged, and vehicles are eligible until they are 10 years old or have traveled 100,000 miles.
Relax comes with every new Toyota or Lexus and also applies retrospectively to models already on the market if they are younger than 10 years and have covered less than 100,000 miles. This means that if you bought a nine-year-old, 90,000-mile Prius today, you could add a one-year manufacturer’s warranty by simply having it serviced at a Toyota dealer.
The rule also applies to vehicles that have been serviced outside the Toyota and Lexus dealer network: When you return a car for a main or intermediate service, Relax is activated for one year. Commercial vehicles, including taxis, are covered, as are all types of propulsion, including hybrids, electric cars, and the hydrogen-powered Toyota Mirai.
A number of manufacturers offer guarantees that go beyond the once traditional three-year period; Renault and Hyundai offer a five year warranty, while Kia offers a seven year / 100,000 mile warranty.
Toyota previously offered a five year / 100k mile policy and Lexus offered a three year / 60k mile policy. Relax replaces both by default with a three-year 60,000-mile guarantee, which can be extended every time a vehicle is serviced by a major dealer. The system works similarly for vehicles with longer service intervals: The Toyota Proace Van, for example, has a two-year maintenance plan and therefore receives a two-year guarantee for every maintenance. Toyota’s previous warranty program, which was introduced in 2010, remains in effect, with Relax starting at the end of the five-year period.
Toyota’s price promise, where dealers match service offers from independent workshops within 10 miles, is also unchanged. Rob Giles of Toyota GB called Relax “a breakthrough” and added that it brings “overwhelming business benefits” to the company.
Why is Toyota doing this?
Relax is good news for consumers and is likely to attract new buyers in and of itself. Toyota also expects “significant growth” in dealer footprint, increasing service revenue and tempting more people with new cars. Residual values are also likely to rise, and as PCP deals wear out, this could theoretically have a positive effect on new car financing over time.
In addition, the company’s warranty costs are relatively low: Our Driver Power data shows that 9.6 percent of Toyota and 11.1 percent of Lexus owners had problems with their cars; the industry average was 17.34 percent.
Do you own a Toyota? Let us know what you think about ‘Relaxing’ in the comments below …