Should Extended Car warranty have VAT

[Casa1862]

I've just recently bought a Extended Car Warranty from Vauxhall for my 57 Reg Astra 1.9cdti. I'm registered for VAT and expected the invoice to show VAT at 20% but it's listed as exempt. I paid £699.00 for three years which I thought £582.50 + vat or £194.00 per year was worthwhile as it covers everything the original manufacturer’s warranty covers in year 2 & 3 when the car was new.

Could it be Insurance premium tax? however previous warranty also bought from Vauxhall last year clearly showed VAT, however that was a different underwriter, Car Plan - this one is the Warranty Group. Any Ideas? called TWG services who administer it but they say up to dealer, would be nice to reclaim the £117.00.

Cheers

[2DDav]

You are correct in what you are saying the price you have paid of £699 includes VAT @ 20% (£116.50) and should show on the invoice as such.

[Casa1862]

That's what I thought but dealer says no VAT. Maybe I'll send the invoice to their head office accounts department.

[2DDav]

Yeah, they are definitely incorrect, tell them to have a look at their GM Messenger dated 10/10/2011 Subject: Vauxhall extended warranty & MOT test insurance ref number: G_0000095789 it clearly states in there regarding VAT being included in the price.

[Casa1862]

2DDav said:

Yeah, they are definitely incorrect, tell them to have a look at their GM Messenger dated 10/10/2011 Subject: Vauxhall extended warranty & MOT test insurance ref number: G_0000095789 it clearly states in there regarding VAT being included in the price.

Cheers, thanks for the useful info. Very little info on this warranty, do you know if it's as good as the one from Car plan? they clearly marketed it as covering everything the manufactures warranty did, bar the obvious brake pad, trim etc, this does seem almost identical apart from this ends at 100k, previous on I had was 1 year or 20k. I’m under 60k so won’t reach 100k in three years anyway.

I did think about replacing the car but would have got £5k trade in, new Astra replacement is easily £20k plus, so better to spend £584 for three years than £15k depreciation for a new one, assuming the level of cover is the same. Drove the replacement 2.0cdt1 160, nice car but spend £584 or £20k, nice but not that nice!

[2DDav]

The warranty is, as you say, the same cover as given under years 2&3 of your standard warranty the only thing that has changed is the administration company changing from Car Care Plan, this happened after The Warranty Group took on the administration of the Lifetime warranty side of things.

New Astra's a nice bit of kit, but as you say the price of some models does get a bit eye watering, also worth bearing in mind that the lifetime warranty can be added on to nearly new car (1 owner, less than 1 year old & less than 30k miles). The newer 2,0CDTi's with 165ps & stop/start also have the benefit of falling into the £30 per year road tax bracket.

[Casa1862]

Reassuring to know that warranty is much the same as years 2 and 3, Car plan marketed this heavily, new warranty doesn’t mention this at all, however all the info I've had confirms it's the pretty much the same.

Spoke to dealer accounts department and they reckon it's come under Insurance Premium tax and no VAT is chargeable. I'm still convinced you are correct, guess I'll have to email them again.

Yes, even 1 year old Astra are still quite expensive, mines a 1.9cdti 150 so I’d want the 2.0cdti. Lifetime warranty (100k) and £30 road tax is nice but sub £200 for a year’s warranty makes it a no brainer to keep it, particularly as nothing wrong the car and I quite like it. I’ve heard DMF and water pumps (taking out the cam belt) are common on these hence why I took out the warranty. Thanks for all the info.

[DanielJames]

Good idea on the warranty, not to scare you but I'm on a Vauxhall forum and owners of the 1.9 cdti regularly see quite a few faults:

• egr valve (as with any modern diesel)
• inlet manifold
• gearbox/clutch/dmf failure
• injectors failing

How has your ownership been?

[Casa1862]

[quote=DanielJames]Good idea on the warranty, not to scare you but I'm on a Vauxhall forum and owners of the 1.9 cdti regularly see quite a few faults:

• egr valve (as with any modern diesel)
• inlet manifold
• gearbox/clutch/dmf failure
• injectors failing

Very good, had the car 4 years and never had any problems apart from EGR valve at 55k, replaced under warranty by Vauxhall dealer, no questions asked.

Car went over three year old last year and looked into changing it, Vauxhall offered warranty with same cover as I'd had when new - £20k plus for a new one or Couple hundred from warranty, obviously kept it. This year Vauxhall said warranty had been pulled, so started looking again only to be told a few weeks later that new warranty almost identical and now available for three years, result three years of motoring with little to worry about for sub £200 per year... Vauxhall don't want to sell me a new car!!