Automobile warranties – As soon as in a lifetime?

Vauxhall has announced it will no longer be supplying lifetime warranties on its autos – a move business observers say could provoke a ‘domino effect’ and prompt other makers to do away with long-term cover.

Photos by MDB Images on Flickr.

6 year scratched

Vauxhall is 1 of just 2 makers at present supplying a 6-year or 25,000 mile warranty on new vehicles. But it has decided to scrap the scheme, citing a rise in the quantity of cars getting sold on finance deals as the purpose.

Virtually 2-thirds (65%) of new vehicles are now sold as portion of a finance deal, such as employ purchase (HP) or personal contract obtain (PCP). Instead of paying a final payment to keep the auto, many buyers choose to get a new vehicle at the end of the finance period and roll the agreement more than for yet another 3 years.

That negates the value of the extended-term warranty, blunting the edge of its use as a marketing and advertising weapon.

For a closer appear at the varieties of finance offers offered, verify out Mark’s post Can you settle your auto finance early?

Kia is the only other manufacturer offering a 6-year, 100,000 mile warranty on all automobiles purchased following January 2010 – this includes some 59-plated cars – but, unlike Vauxhall’s supplying, this warranty is fully transferable and is valid regardless of the quantity of owners the Kia has had during that 7-year/100,000-mile period.

Below is a breakdown (!) of the longest manufacturer warranties currently on offer…

Replacement components

You could discover some of your car’s components are covered for longer than the standard 3-year period as several original equipment manufacturers (OEMs) will offer complete cover for mechanical malfunctions for as long as 10 years.

Nevertheless, in some circumstances the warranty small print and loopholes renders such warranties all but redundant, and you could locate you nonetheless have to pay for replacement components as protection rapidly tapers off.

David Gerrans, managing director of Warranty Direct, a provider of direct customer warranties, mentioned: “In many ways, it’s a shame for automobile buyers, but the reality is that the cover was in no way actually adequate. The little print in all these longer warranties contains a quantity of caveats that can significantly limit their effectiveness lengthy prior to the policy elapses.

He added: “Vauxhall’s decision is sure to make other auto makers consider twice – an exodus from the marketplace is feasible since, if the cover is less comprehensive than that of aftermarket providers, the client is not the winner.”

Automobile warranties – As soon as in a lifetime?