Nov 032014

The demise of Vauxhall’slifetime 100,000-mile ‘lifetime’ new car warranty could provoke a ‘domino effect’, prompting other manufacturers to turn their back on promised long-term cover says Warranty Direct. Several manufacturers provide protection beyond the traditional three-year warranty period, promising comprehensive cover for mechanical mishaps for up to 10 years in some cases.

Warranty Direct has previously questioned the quality of cover provided directly by manufacturers for cars over three-years old, highlighting how protection quickly tapers off and small print loopholes render policies useless as mileage and age increase.

Warranty Direct managing director, David Gerrans, said: “In many ways, it’s a shame for car buyers, but the reality is that the cover was never actually sufficient. The small print in all these longer warranties contains a number of caveats that can greatly limit their effectiveness long before the policy elapses.

“Vauxhall’s decision is sure to make other car makers think twice – an exodus from the market is possible because, if the cover is less comprehensive than that of aftermarket providers, the customer is not the winner.”

Vauxhall has blamed its decision on the rise of PCP (Personal Contract Purchase) and other tempting financing offers, which now account for 65% of new car sales. After three years, most buyers simply choose to replace their car with a new one, rolling the finance deal over into a new three-year period.

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