Four highlights of the new "Three Guarantees Method for Automobile"

2021 10/11


In recent years, with the increasing awareness of consumer rights protection, complaints about engine failure, vehicle oil leakage, and inability to work of the transmission have continuously emerged after consumers purchase a vehicle, and automotive consumer rights protection ranks at the top of the complaint list. China's "Regulations on Responsibility for Repair, Replacement, and Return of Household Automotive Products" came into effect on October 1, 2013. In the context of the automotive industry entering the era of new energy and new technology, the old San Bao Law has emerged as a gap in industry regulation.

 

On July 26, the State Administration of Market Supervision and Administration officially announced the "Provisions on the Liability for Repair, Replacement, and Return of Household Automotive Products" (hereinafter referred to as the "New San Bao Law"), which came into effect on January 1, next year. Compared with the "Provisions on the Liability for Repair, Replacement, and Return of Household Automotive Products", which came into effect at the end of 2013, the total provisions of the new San Bao Law have been reduced from 48 to 42, but there have been many new protections for the rights and interests of consumers, The author summarizes the highlights of the new three guarantees approach as follows:

 

Under certain conditions, consumers can request the operator to replace or return the vehicle within 7 days, and can request the operator to compensate for the vehicle registration fees, the additional installation and decoration fees charged by the seller after deducting corresponding depreciation, and the relevant service fees charged by the seller to the consumer.

 

"If you don't go to the 4S store for maintenance, it's like taking out of warranty is about to become history.". The new Three Guarantees Law stipulates that operators shall not refuse to assume three guarantees responsibility for the maintenance of household automotive products by choosing places other than 4S stores for consumption.

 

3. In response to the new situation in the development of automobiles, the new Three Guarantees Law has added corresponding protection clauses to include the power battery and driving drive motor of household electric vehicles in the scope of Three Guarantees. At the same time, the protection scope of the new Three Guarantees Law has been expanded, and "pickup trucks" have been included in the "Three Guarantees" scope.

 

The new Three Guarantees Law reduces the compensation cost for consumers who require replacement or return of household automotive products according to law. The compensation coefficient is determined by the producer between 0.5% and 0.8%, and is adjusted to not exceed 0.5%.

 

For example, Xiaobai purchased a passenger car of a certain brand on January 1, 2020, with a total price of 1 million yuan, and the compensation coefficient determined in the three guarantees certificate is 0.8%. On October 1, 2021, the vehicle malfunctioned with a driving mileage of 47086km. Xiaobai asked the dealer to return the car according to law. The compensation fee is calculated as follows:

 

Compensation fee (376688 yuan)=price (1 million yuan) × Mileage travelled (47086 km)/1000 km × n0.8%)。

 

According to the provisions of the new Three Guarantees Method, the compensation coefficient used shall not be higher than 0.5%. The calculation results are shown below:

 

Compensation fee (235430 yuan)=price (1 million yuan) × Mileage travelled (47086 km)/1000 km × n0.5%)。

 

Although the new San Bao Law has increased the scope and intensity of protection for consumers' rights and interests, litigation has risks and requires a lot of time and effort. The author suggests that consumers rationally safeguard their rights and interests, and negotiate with business operators in case of disputes, or request consumer associations or other mediation organizations established according to law to mediate.

 

(This article is translated by software translator for reference only.)

y software translator for reference only.)