Understanding warranties

When you buy a new car, it's covered by the manufacturer's warranty. This is basically a mechanical breakdown insurance policy in which the manufacturer promises to pay for repairs to the car if certain things go wrong. In order to benefit from the warranty, you must stick to the rules laid out in the individual policy – so read it thoroughly.

• A warranty is a contract like any other, so read its terms very carefully before taking any action, and be careful to check what is and what isn't covered. There is a tendency to assume all defects will be covered but this is rarely the case.
• Most warranties have strict rules attached to them. For example, many are invalidated if a car is not serviced at precise intervals – such as every 10,000 miles. The amount of leeway will depend on the manufacturer. Stick to these rules if you want to be able to make a claim should anything go wrong.
• Car makers are no longer allowed to include restrictive servicing clauses in their new car warranties. You don't have to use a franchised dealer for servicing, but check your warranty for any rules relating to this.
• Where a warranty is offered, it can’t diminish any of the rights a consumer has under the Sale of Goods Act (for example the right to reject a faulty car) and should contain a statement to that effect.
• The Unfair Terms in Consumer Contracts Regulations 1999 also apply to warranties. These regulations strike out any term in a contract which is deemed to be ‘unfair’ to a consumer. So if the terms of your warranty are unreasonably difficult to stick to, seek legal advice.
  

The manufacturer’s warranty covers a new car usually for three years – so, if your car is older, you may wish to consider paying for an independent warranty.