Learn about the Key Provisions and Terms of the New Car Warranty Decision in Jordan

1 year ago

In a unique precedent, the Jordanian government has officially mandated all traders and car dealerships to provide a written warranty from authorized service centers for all new cars. This decision comes in response to a growing number of complaints regarding manufacturing defects or the unavailability of maintenance parts for many vehicles, leaving consumers without solutions or alternatives from dealers and agents. This has also resulted in significant financial losses for all parties involved, especially in recent times.


Furthermore, the Minister of Industry, Trade, and Labor, Yusuf Al-Shamali, confirmed in a radio interview that this decision was formally issued by the Council of Ministers to mitigate the increasing and potential losses and to ensure the protection of Jordanian consumers. The decision encompasses all types of vehicles, including gasoline, electric, and hybrid cars.


The minister explained that this decision was made following several meetings with representatives of car agents and traders. The warranty percentage will range from 3% to 7% of the vehicle's value (excluding sales tax) and should not be less than 300 Jordanian Dinars.


Moreover, an agreement has been reached to issue written warranties for vehicles from authorized centers, such as Autohub, as follows:


Electric Cars: A 3-year or 50,000-kilometer warranty.


Gasoline and Hybrid Cars: A 2-year or 40,000-kilometer warranty.


It is a requirement that the vehicle's odometer reads less than 1000 kilometers, and it will be inspected before entering the local market in coordination with the licensing authority.


Warranty Coverage:


For Gasoline and Hybrid Cars:


Batteries are covered up to 100% of the total cost in the first 6 months, 75% from 6 to 12 months, and 50% if the malfunction occurs between one and two years.


Engine maintenance follows specific conditions, such as adhering to the manufacturer's oil and filter replacement recommendations and not tampering with or modifying the engine.


For Electric Cars:


The battery and all related power systems, including the inverter, battery regulator, and charger input.


Automatic transmission.


Electric motor.


12-volt secondary battery.



Exclusions from the Warranty System:


Accident damage.


Malfunctions resulting from tampering, modification, or misuse of the vehicle.


Malfunctions resulting from neglecting regular vehicle maintenance.



Conditions for Malfunctions and Damage:


Consumers are entitled to compensation for malfunctions and damage at a rate of 10 Jordanian Dinars per day for each day of delay if the necessary maintenance parts are not provided within 30 to 45 days. This increases to 15 Dinars per day for delays of 45 to 60 days and 25 Dinars per day for delays and breakdowns lasting more than 60 days.


This decision has provided reassurance and relief to citizens and has generated a positive outlook among many traders. Expectations suggest increased demand for new cars, particularly electric ones, following the official implementation of this policy starting in October of the coming year.


In your opinion, do you believe this is a step in the right direction for both consumers and traders, or not?