Automobile sector urges government to delay written warranty implementation for new cars

Representatives from the automobile industry are calling on the government to postpone the enforcement of a decision requiring written warranties for new cars. The Cabinet’s decision, issued in June, mandates that dealers provide a warranty when selling new gasoline, hybrid, or electric vehicles, beginning in October 2023.

Salameh Jabali, head of the General Association for Automobile Dealers and Traders of Automobile Parts and a representative of the automotive sector at the Jordan Chamber of Commerce, spoke about the decision. He emphasized that while it’s a positive step, its effective implementation necessitates a delay until the beginning of the next year.

Minister of Industry, Trade, and Supply and Minister of Labor Yousef Shamali approved a plan in September for implementing the Cabinet’s decision. According to an official letter, the warranty’s cost should range from 3% to 7% of the vehicle’s value, excluding sales tax, with a minimum of JD300.

Jabali explained that the decision benefits both dealers and consumers by protecting them from unexpected repair costs or defects in new vehicles. However, it also imposes technical requirements on repair centers that must be met to provide warranty services.

Jabali noted that currently, no centers meet these requirements, as implementation takes time. Therefore, they are requesting the government to postpone the enforcement of this decision until the beginning of the next year. Many dealers already offer customers the option to purchase a warranty when buying a new car, but some decline to avoid additional expenses.