Oct 032014

vauxhallAs Vauxhall announces it will no longer be offering customers a ‘lifetime’ warranty on new vehicles, we wonder whether this latest move could provoke a domino effect with other Manufacturers doing the same and turning their back on long-term cover.

There are only two manufacturers currently offering a seven-year or 100,000 mile warranty on new vehicles, of which one is Vauxhall. But they have decided to stop the scheme, claiming that a rise in cars being sold on finance deals is the reason.

Warranty Direct’s managing director David Gerrans said “Several OEMs provide protection beyond the traditional three-year warranty period, promising comprehensive cover for mechanical mishaps for up to 10 years in some cases. We have 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.

“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.”

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