Cars are more reliable than ever, but they’re also more complex than ever and not immune to occasionally having problems or breaking down. A car warranty is effectively an insurance policy against the cost of your car going wrong, by covering some or all of the repair costs within a predefined period.
Every new car sold in the UK comes with at least a three-year manufacturer-backed warranty, while some companies offer as many as seven years of standard warranty, and extensions up to 10 or more years. Warranties aren’t restricted to brand new cars either, as third-party firms can offer warranty coverage on used models. Below you can read about why you might need a warranty, how they work, what the warranty should cover, and what things might invalidate a warranty, for both new cars and used ones.
Do I need a car warranty?
It’s certainly highly advisable. Brand new cars have warranties from the factory, typically lasting for around three years, to as many as seven from some manufacturers. There’s always a mileage limit on warranty coverage though, with the longest warranties typically covering a car for up to 100,000 miles, regardless of how many years are left to run.
Some car manufacturers offer extended warranty packages for modest extra cost, while a handful of brands will extend your warranty for free if you have your car serviced within the franchised dealer network – some extending their terms to 10 years.
If you’re buying a used car that’s no longer covered by the manufacturer’s warranty, some brands will offer further coverage by the supplying dealer at extra cost. Dealers may also provide a free warranty for a year as an incentive for purchase, or you can buy one from a third-party provider like Motoreasy, so long as your car meets certain age and mileage requirements.
The cost of fixing some modern cars can run into the thousands, particularly if the car has a major mechanical failure. As such, the few hundred pounds you might spend on a third-party warranty can end up saving you quite a lot of money, particularly on high-end vehicles. Make sure you carefully read the terms and conditions of any warranty before you buy it, in particular what is and isn’t covered.
How does a car warranty work?
When your car suffers a breakdown or failure, a warranty is designed to cover either some or all of the repair costs, provided the car has been correctly maintained and meets the conditions of the warranty. For instance, if the engine in your three-year old car seizes up despite having been serviced on schedule, the manufacturer will carry out a repair under warranty. If, however, you’ve never had the car serviced in that time, you’ll probably have to pay for the repair yourself, since the manufacturer can reasonably put the failure down to lack of maintenance rather than a fault with the vehicle.
How much of the repair costs are covered depends on the level of coverage the warranty provides. Some only cover the cost of parts, others cover both parts and labour. There will be an upper cost limit on repairs, as well – though you may find it possible to elevate a manufacturer’s warranty claim to higher levels if a defect has caused repairs beyond the normal cost limit.
Exactly what parts of the car are covered also varies between different warranties. Manufacturer-backed warranties generally cover just about everything, third-party warranties may exclude certain items like the car’s electrical system. Note that no warranty covers parts that wear out through normal use like tyres and brakes, unless there are exceptional circumstances.
What’s the best car warranty?
Toyota has a solid claim to the title as it offers the longest new car warranty available in the UK. Called Toyota Relax, the initial three-year coverage is extended in one-year increments up to 10 years or 100,000 miles (whichever comes first), so long as you have the car serviced by a Toyota dealer. This also applies to the brand’s luxury arm, Lexus.
Kia, KGM and MG all provide a seven-year warranty with varying mileage limits, while Renault and Hyundai warranties last for five years.
However, a warranty that simply lasts a lot of years may not be best for everyone. BMW’s three-year warranty has no mileage limit, so it may be best for drivers who do a lot of miles.
It’s also worth noting that many manufacturers offer separate warranties for specific aspects of a car, separate to the more comprehensive warranty covering the whole vehicle. It’s not unusual to see eight and 10-year warranties on the batteries of electric cars for instance, while most manufacturers will have an ‘anti-perforation’ warranty, sometimes for periods of over a decade, that covers corrosion repairs if the corrosion started from the inside out (in other words, not from damage to the exterior of the vehicle).
Types of car warranty
When your car’s original manufacturer-backed warranty expires, the supplying dealer may offer you an extension to the manufacturer’s coverage. Dealership groups like Pendragon or Marshall also offer their own warranty packages.
There are yet more options if you’re buying a used car. Most manufacturers have an approved used car scheme that operates through their franchised dealers and a decent manufacturer-backed warranty is generally included in the deal. You may also offered further years of coverage at extra cost.
Outside the approved used schemes, many dealers offer their own extra-cost warranty packages. Independent dealers can also offer warranties, though they are usually acting as agents for one of the third-party warranty providers.
Note that consumer protection laws stipulate all used cars are covered by a three-month warranty from the date of sale.
What does my warranty cover?
This can vary slightly depending on who is supplying the warranty, but generally a manufacturer-backed warranty on a new car, or extended manufacturer warranties, should cover just about every area of a car, including the engine, gearbox, electronics, and suspension components. Brakes will sometimes be covered but may be considered ‘consumables’, which, like tyres, are items that naturally wear out and are significantly influenced by how a car is driven – factors beyond a warranty provider’s control. However, anything covered shouldn’t cost you a penny in parts or labour if you need to have repairs under warranty.
Buy a used car from a manufacturer’s franchised dealer and it should be covered by an approved used car warranty that offers similar coverage. However, things like the exhaust, wheels and battery may not be covered – as a car gets older, these items also become ‘consumables’ like tyres and brakes, which are never included in a warranty.
Note that, if it’s judged the failure was caused by misuse or neglect of the car, you will have to pay up.
Third-party warranty providers, including those used by independent dealers, generally offer several levels of coverage. The basic package may just include the car’s major components – engine, gearbox, etc, to protect you against any larger bills. The upper levels will offer more comprehensive coverage, possibly matching a manufacturer warranty. Always read the small print carefully to find out exactly what’s covered in any warranty.
Are wearing parts covered?
Wearing, ‘consumable’, parts like tyres and brake pads generally aren’t covered by a car warranty, though some do cover them for the first 90 days of a car’s life, giving time for any manufacturing defects to appear.
Even if a wearing part isn’t covered, associated parts may be. For instance, a clutch plate isn’t covered but the rest of the clutch assembly – bearings, springs, etc – are. Similarly, brake pads aren’t covered but the calipers are.
A car’s bodywork has a separate warranty covering any rust that develops. This is typically referred to as an ‘anti-perforation’ warranty. However, if the rust has been caused by a dent or scrape, or the manufacturer deems that corrosion has developed as a result of neglect or improper use, you’ll have to pay the cost of repair. These warranties also usually apply only to the car’s body and structure, so surface rust on subframes or suspension components, which tend to attract a bit more punishment from dirt and debris on the road, aren’t typically covered.
Am I covered for the full amount of the repair under warranty?
A new car warranty should cover the full cost of parts and labour. Many used car warranties also cover parts and labour but there are some that only cover the cost of parts. In either case, used car warranties usually place an upper limit on the cost of a repair.
Let’s say there’s a £5,000 limit on engine repairs. That means you can make one or more claims up to a total cost of £5,000; if the full cost of repairs is actually £7,500, you’ll have to pay the balance. If your new car expensively fails due to a defect and the cost of the repair is above the limit however, in some cases the manufacturer may still step in to cover the cost as a goodwill gesture.
What about extra cover?
Many new car warranties also include breakdown cover that will reimburse any costs you incur if your car grinds to a halt at the side of the road. That can include recovery, car hire, overnight accommodation, rail fares and so on.
A used car warranty probably won’t offer such comprehensive coverage. However, you may be able to pay for an upgrade that includes a similar level of breakdown cover. Before you pay extra for this coverage however, ensure you’re not already paying for it as part of your car insurance, since some insurers roll breakdown cover into their policies.
Do I have to have my car serviced at a main dealer to protect my warranty?
This used to be the case, but no longer applies. Under block exemption rules, you can have your car serviced by an independent garage that uses the correct original equipment manufacturer (OEM) parts, rather than aftermarket ‘pattern’ components. Make sure you get a receipt that itemises the parts used so you can prove the car was serviced correctly, should you need to make a warranty claim.
However, this only applies to the warranty provided on a new car. With any other form of warranty, the provider can impose whatever conditions they please. That’s how Toyota can offer an extended warranty that’s contingent on the car being serviced by its dealers.
Do I have to have a full service history to protect my warranty?
Yes. Whoever provides a car warranty, they will want to see that your car has been properly serviced on schedule, otherwise they may reasonably claim any fault has been caused by lack of maintenance. The service history is your evidence for that. There’s a little leeway, though. If a service was carried out 1,000 miles or 30 days beyond the scheduled mileage or dates, it’s highly unlikely a warranty claim will be refused.
What if I don’t carry out general maintenance?
Here’s a scenario that’s rare but we’ve seen it happen several times. The engine of a two-year old car overheats and seizes. The owner assumes that, given the car’s age, the repair will be covered under warranty. However, when the dealer handling the repair investigates the car’s history, it turns out it has done 40,000 miles and never been serviced. The oil has turned to jelly and the coolant tank is dry, which caused the engine to seize. As a result of that neglect, the owner is liable for the full cost of repair, which could run to tens of thousands of pounds.
The same principle applies to other parts as well. If the braking system becomes damaged because the pads have completely worn away, the costs won’t be covered by the warranty. Likewise, if the clutch assembly shatters because you tear around like a racing driver, you’ll have to stump up for the repairs.
Of course, servicing isn’t just useful for maintaining your vehicle’s warranty – you’re less likely to need to rely on a warranty in the first place if you have your car regularly serviced, and it’ll drive better and be safer, too.
What if one part fails and breaks another?
The term to look out for is ‘consequential loss.’ Many warranties do cover consequential losses, but there may be an upper limit on the cost. Audi’s Approved Cover used car warranty, for instance, states that it ‘will not pay for any damage caused by consequential failure exceeding £2,000 per claim inclusive of VAT.’ That means the policy will cover consequential losses that cost no more than £2,000 to repair – you’d have to cover any extra.
That may be a bit hard to follow, so here’s an example. Your car’s water pump breaks, causing the engine to overheat and blowing a hole in the radiator. If the warranty doesn’t cover consequential losses, only the water pump will be covered because that was the first part to fail, leaving you to pay the bill for a new radiator. If consequential losses are covered, you won’t have to pay anything.
Now, let’s say the overheating caused the engine’s cylinder head to warp. Repairs will cost £2,500. With an Audi Approved Cover warranty, you’ll have to pay the £500.
Is a car’s warranty transferable?
If you sell your car while it’s covered by the manufacturer’s warranty, it stays with the car for the new owner to use – a real benefit for used buyers, who may still enjoy a few years of coverage after the original buyer moves the car on. Check the terms and conditions to make sure you don’t need to inform the manufacturer of the change of ownership. You shouldn’t sell your car if a claim is in progress.
If your car is covered by a third-party warranty, it should be transferable to a new owner, if it has been paid for in full. There will be paperwork to do, though, and you’re under no obligation to transfer the warranty, anyway.
What if I modify the car?
You have to be very careful here. If you fit your car with aftermarket wheels, lower the suspension or remap the engine for extra performance, you’re probably invalidating the warranty. Even if the modified part is unrelated to the one that fails, the manufacturer could still refuse the claim on the basis that the car is no longer in its original specification. Parts officially approved by the manufacturer should be the exception, particularly if they were fitted from new – for example, Ford sometimes offers performance upgrade packages from Mountune on its new cars, and these are typically supported by the manufacturer warranty.
Remember though, car modifications may not just affect your warranty, but also your insurance, so it’s always worth investigating both before going ahead with any changes.
Is it worth getting a warranty on an older car?
Most companies that provide warranties for older cars have age and mileage limits. They vary between companies but you’re unlikely to get a warranty for a car that’s more than 10 years old or has over 100,000 miles. (Interestingly, one exception is Ferrari, which offers a manufacturer warranty even on pre-owned cars that extend up to 15 years.)
If your car is within those limits, it’s definitely worth getting a warranty, even if it’s only worth a few thousand pounds. After all, one big repair bill could easily write it off. Any less than that, though, and it’s probably not worth spending the extra on a warranty, even if you could get one for a car that cheap.
