Vauxhall ditching lifetime warranty could have a knock on effect

Friday, October 3, 2014 - 09:31
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Have Vauxhall started a domino effect?

Have Vauxhall started a domino effect?

After the announcement yesterday that Vauxhall Motors have revisited its Lifetime Warranty programme and will only be offering 3 year/60,000 mile warranty on its cars and vans from from next year, it is feared that the demise of Vauxhall’s 100,000-mile ‘lifetime’ new car warranty could provoke a domino effect, prompting other manufacturers to turn their back on long-term cover.

Several OEMs provide protection beyond the traditional three-year warranty period, promising comprehensive cover for mechanical mishaps for up to 10 years in some cases.

But Warranty Direct has previously questioned the quality of cover provided directly by manufacturers for cars over three-years old, highlighting how protection quickly tapers off and small print loopholes render policies useless as mileage and age increase.

Warranty Direct managing director, David Gerrans, said: “In many ways, it’s a shame for car buyers, but the reality is that the cover was never actually sufficient. The small print in all these longer warranties contains a number of caveats that can greatly limit their effectiveness long before the policy elapses.

“Vauxhall’s decision is sure to make other car makers think twice – an exodus from the market is possible because, if the cover is less comprehensive than that of aftermarket providers, the customer is not the winner.”

Vauxhall has blamed its decision on the rise of PCP (Personal Contract Purchase) and other tempting financing offers, which now account for 65% of new car sales. After three years, most buyers simply choose to replace their car with a new one, rolling the finance deal over into a new three-year period.

Existing vehicles with Lifetime Warranty will continue to be covered for up to 100,000 miles while the vehicle remains with the first owner, subject to annual validation.

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