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Rules of Warranty
Changes to European law mean that you can have a new car serviced by any approved repairer without invalidating the original manufacturer’s warranty, but such rules do not apply to used car warranty.
Many manufacturer-approved warranties insist on the car returning to the franchised network for servicing; with higher labour rates this can add to ownership costs.
In addition, many warranties insist on stringent regimes and it’s not unusual for the terms and conditions to insist that the car is serviced within 1,000 miles of the specified mileage or the warranty becomes invalid. This can cause problems if you cover high mileage or find it difficult to secure a booking with an authorized repairer within the time scale allowed.
If, like many owners, you fancy extending the original manufacturer’s warranty at the end of the standard period of cover then be warned some companies insist that you have a ‘pre-warranty’ inspection. This inspection can take between one and two hours and the bill that accompanies it can weigh in at anything from £150 and £250.
Once you’ve bought the warranty, maintained the car within the terms and conditions and kept within the mileage limitations don’t assume you are in the clear.
When you buy a new car the warranty covers the car not the owner so the warranty transfers automatically to subsequent owners, but the same is not true of many used car policies. You can end up paying anything from £25 - £50 in an administration fee to ensure that the cover continues.In common with most insurance policies, used car warranties have more than their fair share of small print, make sure you don’t part with your hard earned cash for something that is not worth the paper it is written on.
Next article Warranty Cover