After many car brands halted production or exited the market, a once-uncommon service reappeared: paid warranties. These are offered by car dealers and by intermediaries that do not sell or repair vehicles themselves.
Regulations provide little detail on how these schemes should operate, so a variety of models emerged. In essence, all warranty promises are charged to the buyer, though there are notable differences between programs.
Dealer warranty
Not every dealer or every model comes with a dealer warranty. It is available for new cars imported through parallel import channels as well as for cars with low mileage. From this point, the scope and price of the warranty are determined by the dealer, yet they must still comply with consumer protection laws that require sellers to fix identified defects free of charge within two years from the sale date.
Some dealers roll the warranty cost into the car price, creating an impression that it is free and that nothing has changed. This happens because manufacturers previously included warranty costs in the vehicle price. The shift now is that the dealer controls parts procurement pace, not the factory.
Alternatively, the warranty may be offered for a fixed fee, with the car described in the contract as a used vehicle and subject to different legal requirements. In other cases, the warranty may be truly free for a limited period, provided the car is serviced only at that dealer, and the owner contributes subsequent maintenance expenses and living costs during upkeep.
For many makes, a dealer warranty is functionally identical to the standard manufacturer warranty. Dealers commit to correcting defects that arise through no fault of the owner within a specified period, with the exact window depending on the car’s age and mileage. Some dealers even implement design improvements as part of official recalls issued by the factory, at least in promise if not always in practice. And as in the past, a typical extended warranty is offered after the factory warranty lapses, often covering three to six additional years for many brands.
WHY REPAIR?To attract buyers, intermediary firms present benchmark repair costs for specific components. Their price points can appear modest, especially for premium models. The materials here emphasize only repair, not replacement with a new unit, and the repair itself carries its own warranty. In practice, the repair is free of charge under its own guarantee.
With such costs, it remains unclear who benefits most from a warranty offering coverage up to 3 million rubles. Even a premium car can incur repairs totaling that amount within a year, making the price and coverage look surprising. |
insurance guarantee
The idea is to frame the warranty as an insurance product. Some dealers present a policy option where all charges and payout terms are clearly defined.
There is no provision for repairs financed by the insurer. Instead, the insurer pays cash for the damage, and the insured selects the repair service. The risk that coverage may not meet total repair costs is similar to that seen with motor vehicle liability insurance.
This type of service is not new, having existed for cars up to about five years old. Not only insurers but some banks have offered it, historically called an extended warranty. Conditions have recently shifted, which led to new programs such as a one-year overtime warranty for unofficial imports offered by major players in the fall.
Interim warranty
Warranties can cover not just showroom purchases but even older cars bought from private sellers. A customer pays a fee to a company, which will locate a qualified repair shop if a breakdown occurs within the agreed period and cover the repair costs. The agreement also outlines which parts are covered and under what circumstances.
The system seems straightforward. For instance, Carso, with offices in major cities across the country, offers coverage for vehicles under 20 years old with up to 250,000 km on the odometer. Prices for a one-year or 20,000-kilometer plan start around 30,000 rubles for minimal coverage. There are three tiers, with the lowest tier already including the engine and transmission components.
It appears the primary customers were owners of high-value cars arriving under gray-market arrangements.
Lack of transparency
All of these warranty schemes operate in a gray area. A quick review reveals vague price targets and individualized calculations of what buyers must pay to obtain coverage. There are no online calculators like those for OSAGO or vehicle tax, and this paid warranty remains a lucrative business for providers.
Nonetheless, the offering is legal and documented. Buyers can secure warranties ranging from six months to three years, and if a provider fails to meet obligations, standard remedies apply. The central question remains: is it more economical to buy a warranty or pay for repairs out of pocket?
TWO REGULATIONS: REPAIR OR INSURANCEWhen purchasing a vehicle, whether new or used, customers cannot rely solely on the dealer for warranty matters. Independent firms offer similar coverage at comparable prices. A one-year warranty typically begins around 30,000 to 60,000 rubles, depending on model, age, and mileage, and can rise beyond that range. Two common approaches are Carso’s technical warranty and GuaranteeTech’s extended warranty.
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