By Samuel Ee

AUTHORISED Porsche distributor Stuttgart Auto has rolled out Singapore's longest maintenance and warranty package. And its target is not other premium marques but its own brand. It aims to beat parallel imports by offering customers something they cannot get elsewhere - "peace of mind".

"We can't compete against parallel importers on the actual car price. But we can offer those who buy a Porsche from us a more important consideration," said a Stuttgart Auto manager. Since Sept 1 this year, all Porsches bought from Stuttgart Auto come with a five-year free maintenance and warranty programme at no extra cost.

Previously, the warranty was four years, with free service for three years.

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Three years seems to be the norm for luxury makes here. Mercedes-Benz and BMW, for example, also have a standard warranty and service interval of three years. At BMW, this can be extended by the customer for a fee.

The closest competitor is Rolls-Royce, with a four-year warranty and maintenance programme. Like Porsche, Rolls-Royce is one of the five marques distributed by the Eurokars Group of Companies, which owns Stuttgart Auto.

Stuttgart Auto says that the objective of its five-year or maximum 100,000 km, whichever-comes-first, free maintenance package is to "add value to our cars sold, especially since this package is transferrable with the car".

The manager said that the programme covers all servicing as well as maintenance and repair costs - including regular wear and tear - that could possibly be incurred in the first five years of ownership. "Actually, the five-year warranty is not the most significant aspect of the cover," he said. "What is significant is the maintenance. To put it simply, if you buy a Porsche, all you have to do is change your own tyres, don't scratch or dent the car, and there will be no extra cost to you. Parts and labour are free."

Common parts replaced during regular servicing include spark plugs, brake pads, brake discs, brake fluid, wiper blades, bulbs, belts and other regular wear-and-tear items. These are estimated to cost about $10,000 over five years barring any major problem.

In contrast, a Porsche bought in Germany comes with just a two-year warranty and no free maintenance, The factory charges for an extension.

A growing number of Porsche parallel imports have appeared in Singapore in the past couple of years. In 2007, there were 39 grey imports versus 301 units sold by the authorised distributor - a record.

In the first nine months of 2008 there were 43 parallel imports, against Stuttgart Auto's 227 cars.

Parallel-imported Porsches are popular because of their lower OMV, or open market value, which results in a lower sticker price.

The manager said: "It's difficult to put a value on the free maintenance package as it's like an insurance policy against anything untoward that could happen. When you consider that, any short-term price advantage may not be worth it."

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This article was first published in The Business Times on Nov 29, 2008.