NO GUESS WORK REQUIRED: SERVICE AGREEMENTS & WARRANTY EXPLAINER

There’s nothing like the feeling of being handed the keys to a new truck.

Whilst the thrill is something to celebrate, it’s also important to keep the less exciting aspects of truck ownership from being overshadowed—and that includes the role that aftersales programs and warranty can play in supporting your business.

Here to help you maintain that new truck feeling are people like Glenn Jones, the National Service Business Manager of Isuzu Australia Limited (IAL), who explains the differences between service agreements and warranties, how the two work, and what some of the industry’s leading brands are doing differently for their customers.

Glenn’s career began on the tools as an apprentice motor mechanic when he was 15 years old, working his way up, Glenn then switched into the Original Equipment Manufacturer (OEM) space as a technology advisor and senior manager for 13 years prior to joining IAL in 2018. Glenn moved into his current role after several years as IAL’s Zone Business Manager for Victoria and Tasmania.

Hi Glenn, what is the difference between a warranty and a service agreement, and why is it beneficial to get a good deal on both?

Your warranty from the OEM covers parts replacement and workmanship* for manufacturing defects on major truck components—essentially things that shouldn’t occur but by bad luck perhaps do occur in the course of your truck being on the road.

On the other hand, a service agreement is a monthly payment (usually arranged at point of purchase) that covers the cost of servicing, so that regular servicing and preventative maintenance is booked in from the get-go. Small accessory and parts replacements are covered and over time, it builds up to cover larger parts replacements given regular wear and tear.

This means that no surprise repairs pop-up for the serviceable components of your truck, therefore potentially reducing the whole-of-life cost (‘lifetime’ or total cost of ownership) of the truck in the long term.

Part of the reason Isuzu has increased its truck warranty to six years including six years of roadside assistance as standard is to show our customers that we believe in the product and that we will support them for longer than any other truck brand in the country.

*For works carried out by an approved dealership or Authorised Service & Parts Outlet (ASPO)

Why is ‘whole-of-life cost’ or total cost of ownership a metric to watch for owners and fleet managers? 

Considering whole-of-life cost is really valuable, especially at the time of purchase because it lets you plan for on-going costs, not just the up-front outlay.

Smart business owners want to avoid the unknown. This is why service agreements offered at the dealership - that have the costs quoted out for multiple years into the future - can be very useful for businesses to be able to budget for their vehicle maintenance. It takes the guess work out of the equation.

Is there a way to decrease whole-of-life cost while maintaining high standards of vehicle performance?

1. A service agreement made at the time of purchase helps, because it incorporates preventative maintenance—this means parts are replaced before they wear out or break. It also puts money aside for when any major parts do need replacing, and those major services need to occur. In turn, this prevents breakdowns that cost time and money to fix.
2. Using genuine OEM parts can be another way of saving money in the long run. Genuine parts are engineered and tested specifically for the truck model in question and won't damage it due to poor fit or quality.
3. Use the recommended oils and lubricants are vital to the smooth running of your truck's engine. We find it’s a common occurrence for truck owners to take a financial short cut and use lower grade lubricants than recommended, which can end up damaging the engine over time, instead of extending the life of the engine and its components.
4. Don't skip services even if you decide not to go with a service agreement, your truck is working hard for you and will continue to do so with regular servicing.

Keeping your truck and fleet in top condition means it will be at peak performance… think of it as a necessary expense which will ultimately save the business money down the road and save you stress.

How do you determine what service agreement is the best fit?

There are different levels of service agreements in price and structure, and they all differ from OEM to OEM.

In the case of Isuzu Trucks, the most comprehensive service agreement is always made available at the time of purchase at the dealership, simply because it covers everything you need to budget for from the onset.

For us that is Isuzu Total. It includes the cost of parts replacement as per the servicing schedule, along with oil and lubricants—and with monthly payments already covering costs, there are no nasty surprises.

Isuzu Total includes engine, transmission and driveline, cab and electrical, chassis, and suspension. There is also a range of optional extras like the ability to book after hours labour, staff to pick up and drop off your vehicle, and roadside assistance and towing.

If you didn’t organise a service agreement at the time of purchase and changed your mind down the line there are a great range of options available, with our aftersales support on-hand to advise on what would be financially manageable for your business.

Back to warranties - what should you expect from an Isuzu warranty?

Our warranties include a six year factory warranty and six years of 24/7 roadside assist, but the mileage and hours limits (if applicable) are also generous for different applications, like concrete agitating or off-road work. 

Our aim is to ensure customers receive the best support and service available in the industry. I also want to highlight that the quality of our products means we are confident standing behind them for a longer than other manufacturers.

What do you think customers are really looking for when it comes to product support like this? Value for money?

Isuzu is not putting out a six-year warranty because we think people are going to need a high level of support for six years. It's the opposite.

I think it is peace of mind that people are searching for.

We know our vehicles are a quality product and we put our reputation behind them knowing they're going to go the distance.

When you combine a six-year warranty and roadside assistance with Isuzu-approved servicing at the dealership using genuine replacement parts… you've got a product that's going to do the job for a very long time and with a minimal amount of fuss.

At the end of the day, we want fewer headaches for our customers and less stress so they can get on with their business.

Want to bring the bling to your truck and improve its capabilities as a work vehicle? Check out our latest blog on must have truck accessories.