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At Lawgistics we receive many enquiries from used car dealers where their customers have become very dissatisfied as a result of an insurance warranty claim taking too long to resolve or being turned down due to a loophole. Sadly many used car warranties do not live up to the 'peace of mind' they first promised. And unfortunately, when your customer becomes dissatisfied with their warranty it reflects badly on you and your car sales business. As a vehicle retailer you have Sale of Goods duties and the warranty (which should enhance basic Sale of Goods rights) often has less customer rights than are automatically there when a vehicle is sold. We talk to car dealers every week that view warranties as their own protection and often turn customers with problems away, hiding behind the warranty and refusing a customer claim. Your customers' legal rights cannot be restricted by the warranty and they can always potentially claim for compensation arising from the breakdown of a component that has failed. For instance, a failed timing belt often leads to a serious engine failure and a failed cylinder head gasket can lead to a 'cooked' engine. There may be a charge for recovery or vehicle hire and in some cases the consequential loss may extend to an overnight stay in a hotel. Unfortunately, you could be liable for all of this and much more! At Lawgistics we regard warranties as a defence mechanism not 'customer peace of mind'. The customer has peace of mind under the Sales of Goods Act and the warranty simply provides a set of instructions on how to make a claim if there is a problem. And this is why we recommend dealers to run their own warranties... read more