Hong Kong is not the place to be if you want a decent warranty on your new car, according to the South China Morning Post.

The newspaper reported: “The mainland media may complain about unequal treatment by global corporations but, when it comes to warranties from luxury carmakers such as Mercedes-Benz and BMW, buyers across the border seem to be getting a much better deal than those in Hong Kong.”

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A Mercedes-Benz owner in the city gets a two-year or 80,000-km warranty – whichever comes first – on major components including the engine and gearbox. Mainland buyers, however, get a three-year warranty with no cap on mileage.

The newspaper’s research also discovered that the terms for Mercedes owners in the US and Canada are even more favourable with warranties for four years or up to 80,000km, according to dealers’ websites.

Warranties for Hong Kong buyers of BMWs are also the least favourable with a one year warranty on major components. In China they get two years and unlimited mileage while in the US and Canada, new cars again come with four year or 80,000 kms cover.

Mercedes told the SCMP that warranty terms are decided by the carmaker according to the market environment and that car prices also vary between markets.

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Wesley Wan Wai-hei, president of the Hong Kong Automobile Association, said the small size of Hong Kong’s car market means carmakers usually get just one dealer for the whole city, resulting in lack of competition.

“Hong Kong cannot be compared with vast markets like China and the US. Unless the carmakers take over the sales and after-sales services from their dealers like Volkswagen did, Hong Kong car owners will still likely be subjected to high repair and maintenance costs.”