Tuesday 19th April 2005

Rover buyers offered warranty discount

Warranty company aims to gain from company's demise

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Discounted warranties available

Following the demise of MG Rover, independent warranty company Warranty Direct is offering MG Rover customers 20 per cent off any new warranty policy purchased. The offer is applicable to cars under five years old.

Last Wednesday, administrator PriceWaterhouse Coopers wrote to MG Rover dealers confirming that they will no longer be able to meet the cost of repairs -- see link to PistonHeads story below.

It's estimated 150,000 MG Rover owners have lost their car warranty cover. "MG Rover owners have been left in the lurch with their vehicle warranties. Should their vehicle develop a fault, they will no longer be able to return to their franchised dealer and expect the cost to be covered by a manufacturer warranty," said Warranty Direct boss Duncan McClure Fisher.

"Under the Sale of Goods Act, consumers can find some protection. Should their car need remedial work, depending on the fault and age of vehicle, they may be able to claim through the small claims court. However, the industry is already raising questions marks about the futures of many of the franchised dealers."

Links

• PistonHeads warranty story
• Warranty Direct

[clarkey]

I think this issue has been mis-reported quite a lot. When you buy a car, the contract is with the dealer, not the manufacturer. It is therefore the dealer's responsibility to honour the warranty, which happens to be backup up by the manufacturer in most cases. I guess dealers will have to buy warranty from a third party to cover this, or risk being hit for the cost.
Surely many of the MG Rover dealers will go under? No product to sell, forecourts full of second hand stock which has plummeted in value, no warranty fund available. The biggest risk to the consumer is that most dealers will go out of business and and re-form to sell a different brand, leaving the customer well and truly stuffed.

[Sgt^Roc]

a Rover with out a warranty no chance