Main Dealer Warranties
Author
Discussion

Rick101

Original Poster:

7,190 posts

180 months

Friday 25th October 2013
quotequote all
Probably something I should know, but as I've never bought a main dealer car, I don't.

Is the main dealer warranty a different thing to a manufacturers warranty?

When I had my (privately bought) Jag I went to Minster Jaguar and asked if it was possible to get a Jaguar warranty on it. They said they could at a cost of approx £2K. On checking it seemed that the warranty was with Minster only and not Jaguar. I'd guess any claims were paid for out of Minster's pocket.

Is this the same with manufactures warranty? Do Minster cover the costs or to Jag HQ cover the cost. If I buy a brand new Jag from Minster can I go to another franchised dealer for a claim? If I buy an approved used 2yrs old is that Jag HQ warranty or Minster warranty? If I but an approved used 5yrs old, again, Jag HQ or Minster?


Thanks

littleredrooster

6,412 posts

226 months

Friday 25th October 2013
quotequote all
Most (all?) used car warranties are done by insurance companies and 'badged' by the manufacturer. They have no direct connection to the manufacturer and are not 'backed' by anyone.

It removes a financial risk from the dealer and has been used by some to wriggle out of claims that they should have fixed before the car left the showroom. Some examples were on here recently.

Unless someone knows different, of course.

aw51 121565

4,773 posts

263 months

Friday 25th October 2013
quotequote all
New car = 'manufacturer warranty', warranty backed by the manufacturer.

Second hand car from main dealer = remains of manufacturer's warranty (if still in force/applicable), then a 'main dealer' warranty backed by an insurance company (if offered or otherwise purchased at the time as it's not compulsory).

In theory, at least, and in very simplistic terms.

smile

Condi

20,467 posts

201 months

Friday 25th October 2013
quotequote all
aw51 121565 said:
New car = 'manufacturer warranty', warranty backed by the manufacturer.

Second hand car from main dealer = remains of manufacturer's warranty (if still in force/applicable), then a 'main dealer' warranty backed by an insurance company (if offered or otherwise purchased at the time as it's not compulsory).

In theory, at least, and in very simplistic terms.

smile
So what about a BMW warranty, which you can put on any second-hand BMW, through BMW themselves rather than a dealer?

littleredrooster

6,412 posts

226 months

Friday 25th October 2013
quotequote all
Condi said:
So what about a BMW warranty, which you can put on any second-hand BMW, through BMW themselves rather than a dealer?
BMW merely dress it up and sell it. It's actually nowt to do with BMW, it's just another insurance policy. Just the same as any other manufacturer, they'll have negotiated a nice bit of commission on each policy sold with their brand-name on it.

Unless they've changed it in the last 6 months or so.

Thehandshake

181 posts

156 months

Friday 25th October 2013
quotequote all
Condi said:
So what about a BMW warranty, which you can put on any second-hand BMW, through BMW themselves rather than a dealer?
Manufacturer backed policies are usually the only ones that are worth the paper they are written on. That said the level of cover changes as the car gets older up to 5 years it's usually an extension of comprehensive car warranty above it will be something like named components warranty.

5678

6,146 posts

257 months

Friday 25th October 2013
quotequote all
littleredrooster said:
BMW merely dress it up and sell it. It's actually nowt to do with BMW, it's just another insurance policy. Just the same as any other manufacturer, they'll have negotiated a nice bit of commission on each policy sold with their brand-name on it.

Unless they've changed it in the last 6 months or so.
You do get a bit more confidence with the BMW/Mondial policies though. From my experience, it was as good as the initial manufacturer warranty.

I had one issue with the headlight units on my 650. They were letting moisture in and I was told that it was a "sealing strip" that had failed and that seals were not covered under the warranty. Ok, I want them replaced please... We can't sir, the headlight is a whole unit!
So after debating the point that if the seal had failed, then the headlight unit had failed (which was covered by the warranty!) for a while. We eventually got to the point where they paid parts (£1900!) and I paid labour. Try that with Warrantywise or the like!

littleredrooster

6,412 posts

226 months

Friday 25th October 2013
quotequote all
Thehandshake said:
Manufacturer backed policies...etc
They're not backed. They may be branded, but the manufacturer puts no financial backing behind them. It's a way for them to ensure their profits without any potential disasters.

If they didn't, every used car sold would have anything up to 2 years of potential further outlay to repair faults and the net profit from that vehicle would be unknown until then. Passing the risk to an insurer removes that financial doubt.

[cynic mode]It's ironic that the customer usually pays for this removal of risk though![/cynic mode]

Thehandshake

181 posts

156 months

Friday 25th October 2013
quotequote all
littleredrooster said:
They're not backed. They may be branded, but the manufacturer puts no financial backing behind them. It's a way for them to ensure their profits without any potential disasters.

If they didn't, every used car sold would have anything up to 2 years of potential further outlay to repair faults and the net profit from that vehicle would be unknown until then. Passing the risk to an insurer removes that financial doubt.

[cynic mode]It's ironic that the customer usually pays for this removal of risk though![/cynic mode]
Well yes, branded. From personal experience the cover they provide is better than the non-manufacturer branded ones

Ozzie Osmond

21,189 posts

276 months

Friday 25th October 2013
quotequote all
This subject is widely misunderstood.

  • A proper "warranty" is simply one term of a contract. If there is no contract there can be no enforceable warranty. (In this context the word warranty does not mean "guarantee")
  • When you buy a car the contract is with the seller - in other words the car dealer. The manufacturer is not involved at all (unless it happens to own the dealership).
  • Separately, to encourage confidence in their cars, the manufacturers tend to give assurances which they call "manufacturer's warranty". In other words, a "manufacturer's guarantee". Essentially they say "we promise that we will do certain things to keep your car running for 5 years even if there's no contractual rights against the dealer or if the dealer goes bust".
  • It's worth mentioning that any Sale Of Goods Act warranties are always with the dealer who sold you the car and not the manufacturer. These are much more limited than the relatively belt-and-braces manufacturer's warranty.
  • It's also worth mentioning that if the manufacturer goes bust the "manufacturer's warranty/guarantee" disappears. But you may still have rights against the dealer who sold you the car.

Rick101

Original Poster:

7,190 posts

180 months

Friday 25th October 2013
quotequote all
If I buy a new car from dealer A who subsequently goes bust, who do I then go to?

littleredrooster

6,412 posts

226 months

Friday 25th October 2013
quotequote all
Rick101 said:
If I buy a new car from dealer A who subsequently goes bust, who do I then go to?
Another dealer from the same manufacturer, and beg for goodwill. Your legal contract is with whoever you bought it from, as already explained in an earlier reply.

160

239 posts

175 months

Friday 25th October 2013
quotequote all
littleredrooster said:
Rick101 said:
If I buy a new car from dealer A who subsequently goes bust, who do I then go to?
Another dealer from the same manufacturer, and beg for goodwill. Your legal contract is with whoever you bought it from, as already explained in an earlier reply.
I thought on a new car all the costs were claimed back via the manufacturer. Also I bought my second car brand new from one 'Fiat' dealer and went to a second 'Fiat' dealer for all the warranty work no begging required.

-Z-

8,366 posts

236 months

Friday 25th October 2013
quotequote all
I don't know why people are being obtuse?

New car: normally a 3 yr transferable nationwide warranty. If dealer A goes bust you just go to dealer B.

Used car: you must make sure it is approved used, if it is then the warranty will normally work similar to a new car warranty. Just be aware that not every car is approved used, Nissan used to have this distinction last time I looked in 2010.

Ozzie Osmond

21,189 posts

276 months

Friday 25th October 2013
quotequote all
You are all sort of correct. If dealer 1 goes bust you go to dealer 2, who sorts your car out on behalf of the manufacturer. There are arrangements in place between dealers and manufacturers to reimburse the cost of warranty work.

SV8Predator

2,102 posts

195 months

Friday 25th October 2013
quotequote all
littleredrooster said:
Another dealer from the same manufacturer, and beg for goodwill. Your legal contract is with whoever you bought it from, as already explained in an earlier reply.
"beg for goodwill"?

What a ridiculous post.

littleredrooster

6,412 posts

226 months

Friday 25th October 2013
quotequote all
SV8Predator said:
"beg for goodwill"?

What a ridiculous post.
Ridiculous?? You need to revise your legal knowledge re. SOGA

OK - if not 'beg for', then 'hope for', because that's what it would be.

No other dealer is under any kind of obligation to provide warranty repairs to a new vehicle supplied by another legal entity. The strict contractual obligation lies with the supplying dealer; if they go bust, tough titty, any other dealer may or may not do it for 'goodwill' to the marque.

And yes - I know how the dealerships work with regard to warranty work and how they are reimbursed by the importer/manufacturer for work carried out, but in strict legal terms the liability lies with the supplying dealer.

So - best not go to another dealer and start shooting the old mouth off, eh?