6 Month Warranty
Discussion
Could someone give me an insight into the financial aspect of a six month warranty.
Say a garage is selling a car for £5k, they may have taken it in for £4k part exchanged.
They have to cover costs, labour, rates and so on. Assume they make a £500 profit.
On a modern common rail diesel around this price, anything at all could cost a grand to repair. Turbo, injectors, gear box, DMF, particle filter. If a couple of things go, well then.
Seems a massive gamble to me.
Am I missing something?
Say a garage is selling a car for £5k, they may have taken it in for £4k part exchanged.
They have to cover costs, labour, rates and so on. Assume they make a £500 profit.
On a modern common rail diesel around this price, anything at all could cost a grand to repair. Turbo, injectors, gear box, DMF, particle filter. If a couple of things go, well then.
Seems a massive gamble to me.
Am I missing something?
I think it's the quantity. So; they'd probably lose money if something goes wrong but how many cars go wrong 6 months after purchasing? I think this is the mysterious and slightly frustrating thing about anything warranty-wise, nothing breaks until the warranty goes. What I'm trying to say is that, with the amount of cars they sell; only a small percentage would have problems, keeping them in the profit.
gottans said:
Don't get confused with the dealer obligations for pre-existing faults. It does sound like there is a bit of confusion as pre-existing faults would be covered by the dealer not pushed off onto a third party warranty.
This is what I mean, a dealer must cover pre-existing faults occuring within 6 months (so I am told). So in effect, a car sold without warranty still has a six month "warranty".
Another Fluffer said:
Most have a money limit e.g. £400-500
Or the warranty could be excluding engine faults e.g. Turbo, injectors, fuel rail etc. and limit themselves to ball joints/CV boots and the likes
This is true but imagine when someone on here has bought a 100,000 miles 320d and the timing chain has gone after 5 months, the amount of screaming they will be doing about 'fit for purpose' 'where do I stand' 'can I kill the dealers dog'. I am in the motor trade and did 10 years customer facing retail, too many people want a premium badge and accept a higher mileage car to get this but go ape when premium brand repair bill start to come through the door. No offence intended to anyoneOr the warranty could be excluding engine faults e.g. Turbo, injectors, fuel rail etc. and limit themselves to ball joints/CV boots and the likes
Another Fluffer said:
Most have a money limit e.g. £400-500
Or the warranty could be excluding engine faults e.g. Turbo, injectors, fuel rail etc. and limit themselves to ball joints/CV boots and the likes
It doesnt matter.Or the warranty could be excluding engine faults e.g. Turbo, injectors, fuel rail etc. and limit themselves to ball joints/CV boots and the likes
If a turbo goes after a month it would be up to the dealer to sort under the SOGA
EvanWatson said:
Could someone give me an insight into the financial aspect of a six month warranty.
Say a garage is selling a car for £5k, they may have taken it in for £4k part exchanged.
They have to cover costs, labour, rates and so on. Assume they make a £500 profit.
On a modern common rail diesel around this price, anything at all could cost a grand to repair. Turbo, injectors, gear box, DMF, particle filter. If a couple of things go, well then.
Seems a massive gamble to me.
Am I missing something?
On a £6K car a dealer will be looking for around £1000 net profit.Say a garage is selling a car for £5k, they may have taken it in for £4k part exchanged.
They have to cover costs, labour, rates and so on. Assume they make a £500 profit.
On a modern common rail diesel around this price, anything at all could cost a grand to repair. Turbo, injectors, gear box, DMF, particle filter. If a couple of things go, well then.
Seems a massive gamble to me.
Am I missing something?
He will either self warrant, or buy in a warranty at maybe £250.
If he self warrants he'll probably put a percentage of his profits into a "pot".
Statistically you'd have to be very unlucky to have a major failure (say costing £1,000+) on more than 1 in 50 cars.
When i was selling 20ish a month at between £1500 and £3500, i had may half a dozen major failures a year.
If the trader were to avoid diesels - and a lot of traders do - he'll reduce that risk of a big bill significantly, unless hes selling german high end stuff.
northwest monkey said:
EvanWatson said:
This is what I mean, a dealer must cover pre-existing faults occuring within 6 months (so I am told).
So in effect, a car sold without warranty still has a six month "warranty".
Unfortunately not true. Would be nice if that were so, but it isn't - sorry!So in effect, a car sold without warranty still has a six month "warranty".
If a turbo or a gearbox or something went at 4 months, it would be up to the dealer to prove that the "fault" wasnt pre-existent.
daemon said:
northwest monkey said:
EvanWatson said:
This is what I mean, a dealer must cover pre-existing faults occuring within 6 months (so I am told).
So in effect, a car sold without warranty still has a six month "warranty".
Unfortunately not true. Would be nice if that were so, but it isn't - sorry!So in effect, a car sold without warranty still has a six month "warranty".
If a turbo or a gearbox or something went at 4 months, it would be up to the dealer to prove that the "fault" wasnt pre-existent.
northwest monkey said:
daemon said:
northwest monkey said:
EvanWatson said:
This is what I mean, a dealer must cover pre-existing faults occuring within 6 months (so I am told).
So in effect, a car sold without warranty still has a six month "warranty".
Unfortunately not true. Would be nice if that were so, but it isn't - sorry!So in effect, a car sold without warranty still has a six month "warranty".
If a turbo or a gearbox or something went at 4 months, it would be up to the dealer to prove that the "fault" wasnt pre-existent.
http://www.legislation.gov.uk/ukpga/1979/54
Section 14
"14 Implied terms about quality or fitness.
(2B) For the purposes of this Act, the quality of goods includes their state and condition and the following (among others) are in appropriate cases aspects of the quality of goods—
(a)fitness for all the purposes for which goods of the kind in question are commonly supplied,
(b)appearance and finish,
(c)freedom from minor defects,
(d)safety, and
(e)durability."
F39.48A "For the purposes of subsection (1)(b) above goods which do not conform to the contract of sale at any time within the period of six months starting with the date on which the goods were delivered to the buyer must be taken not to have so conformed at that date."
Edited by daemon on Thursday 9th January 18:50
Edited by daemon on Thursday 9th January 18:50
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