What does the three guarantees exemption for parallel imported vehicles mean?

2 Answers
AdelineAnn
07/23/25 8:29pm
Three guarantees exemption refers to a waiver agreement where the dealer requires the vehicle owner to relinquish the right to claim compensation when quality issues arise with the vehicle. After the introduction of the Automobile Three Guarantees Law, parallel imported vehicles are required to purchase compulsory quality assurance insurance, known as "compulsory three guarantees," when issuing invoices. However, some parallel import dealers may choose not to purchase the three guarantees but instead require the signing of a waiver agreement. This agreement states that the owner forfeits the right to claim compensation if quality issues occur with the vehicle. Below is an introduction to the insurance forms for parallel imported vehicles: 1. In-store insurance: This refers to the warranty provided by the seller of the parallel imported vehicle. When signing the purchase contract, the dealer includes relevant warranty terms in the contract. If issues arise during the warranty period, the dealer covers the repair costs for the customer. 2. Institutional/insurance company insurance: This is a specialized insurance type established by third-party companies for parallel imported vehicles. In the event of quality issues, the corresponding institution or insurance company handles the repair and compensation. These institutions and insurance companies have nationwide agreements with designated repair centers.
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LaBrody
09/23/25 3:37am
Simply put, this car doesn't have official warranty coverage. Unlike models sold through 4S stores, parallel-imported vehicles aren't recognized by manufacturers, who naturally won't take responsibility. Getting basic warranty from importers is already considered good, but when major components like engines or transmissions fail, they'll likely refuse liability. For example, a friend's European-spec BMW recently had its air conditioning compressor fail—the importer only compensated about 100 yuan for diagnostics, while replacing the compressor cost over 8,000 yuan. The money saved buying such cars might be doubled in after-sales costs. If you're truly after low prices, be prepared to shoulder the risks yourself.
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