| Category | Date | Subject |
|---|---|---|
| Car Warranty | 11/07 | Warranty Cover Price Doubles at Franchised Dealers |
| Car Warranty | 11/07 | Over 1 Million Cars Will Break Down Just Outside of Warranty |
| Debt & Motgages | 11/07 | The Credit Crunch |
| Car Warranty | 11/07 | North South Divide as Garage Charges Top £183 an Hour |
| Energy | 11/07 | Avoid the Winter Bill Chill |
| Energy | 10/07 | Top 10 Tips for Saving Money on Energy |
| Prepaid Cards | 10/07 | ABC’s of Prepaid Cards |
| Energy | 10/07 | Barriers to Switching Energy Supplier |
| Credit | 10/07 | Consumer Credit Crunch |
| Energy | 10/07 | Consumer Prices are Standing Still – Why? |
| Energy | 10/07 | Lock in Savings Before the Winter. |
| Energy | 10/07 | Why do I Have a Paper Bill? 10 Reasons why you Shouldn’t. |
Articles supplied by Xelecta plc, Warranty Direct Ltd and Brightside Plc
Buying a warranty to cover your car against hefty garage bills will cost you more than double on average if you buy it from a franchised dealer rather than an independent provider.
The failure rate of a car leaps up by 50 percent as it moves out of the comfort zone of the manufacturers three-year warranty with 1 in 3 suffering a breakdown*. Last year, British motorists spent £9.6 billion on servicing and repair costs.
But, according to new research by independent automotive warranty specialist, Warranty Direct franchised dealers are exploiting their customers and charging over the odds for extended protection.
Comparing warranty prices on a random basket of 20 cars, covering 15 different manufacturers, Warranty Direct found that the average price for a dealer policy was a staggering 221 percent of the price of independent cover.
The average franchised warranty price came out as £538.75, while the cost of the equivalent cover from Warranty Direct was £243.94 – a saving of almost £300.
The biggest difference in price came from a Volvo dealership, which quoted £1,132 to cover one of its S80 models. The same independent policy, with the added benefit of wear & tear and consequential loss protection, would set you back £280.
In another case, a Renault dealer wanted to charge £552 for a Clio, compared to just £180 from Warranty Direct.
| Manufacturer | Model | Average Dealer Premium | Warranty Direct Premium | Average Repair Bill Per Visit |
|---|---|---|---|---|
| Volvo | S80 Executive | £1132 | £280 | £522.12 |
| Renault | Clio Privilege 16v | £552 | £180 | £246.72 |
| Nissan | Almera SXE DC1 | £450 | £225 | £491.24 |
| Vauhxall | Vectra Elite 16v | £425 | £230 | £261.24 |
| Subaru | Legacy S | £425 | £240 | £506.72 |
| SEAT | Alhambra SE 130 TDi | £916 | £295 | £414.64 |
| Suzuki | Grand Vitara TD | £350 | £250 | £271.48 |
| NB: All models registered in 2004 | ||||
“Some of the prices are daylight robbery,” said Duncan McClure Fisher, managing director of Warranty Direct. “It’s totally unjustifiable.”
“Not only do they charge extortionate labour rates, sometimes as much as £156 an hour, to service or repair your car, but dealers also get a fat pocket every time they sell an extended warranty to an unsuspecting driver, who could have the same cover and peace of mind for much less.”
Visit Warranty Direct for a quote
* Taken from Warranty Directs database of more than 50,000 vehicle policies