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Mis-sold vehicle warranty by garage...... HELP!!
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# 1
clusters
Old 07-03-2011, 1:16 PM
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Default Mis-sold vehicle warranty by garage...... HELP!!

Hi there,

My OH is a private hire driver, he purchased a used car from a garage a few months ago. They offered a warranty (through a company they use) on the vehicle.

My OH explained his job (so the car usage would be for gain and reward) and also that he would do some hefty mileage.

The garage said that they had spoken with warranty company and this was all fine.

Anyway - long story short - the vehicle has had a few problems, warranty covered half the cost of the first problem, but our BMW specialist called this morning to say that, when he got in touch with them about the second problem, they have turned around and said they believe this vehicle is being used for reward and thus the policy is void!!!

Where do we stand with this? Obviously, the garage lied to us but I don't know who to start complaints with, who to pursue for repair costs, policy cancellation etc etc (basically, who should I start politely threatening by letter!!!)

Any advise would be greatly received!

Many thanks
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# 2
shaun from Africa
Old 07-03-2011, 1:20 PM
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It would be a good idea to contact your motor insurance provider and see if they offer legal advice. A lot of them will either give you free advice, or they give you the option for legal cover when taking out the policy.
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# 3
spiro
Old 07-03-2011, 1:39 PM
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What do the T&Cs of the warranty paperwork say?
Are there any witnesses to the fact you told the garage it would be used for hire and reward?
IT Consultant in the utilities industry specialising in the retail electricity market.

4 Credit Card and 1 Loan PPI claims settled for 26k, 1 rejected (Opus).
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# 4
Wh05apk
Old 07-03-2011, 1:46 PM
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Suggest contact the selling garage first, they may have genuinely had it agreed by the warranty company, however if not they are at fault, so pursue them, if the warranty company do not provide cover for this type of use, then clearly you have been mis-sold the warrnty by the dealer.
I am a mortgage adviser.

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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# 5
clusters
Old 07-03-2011, 2:15 PM
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Thanks for your replies so far!

The ts & cs do state NOT for hire or reward, which is exactly why the question was asked (along with the mileage).

My OH spoke to the garage on the phone (as we are in Bournemouth and the garage is in South Yorkshire) and I was with him at the time when he asked specifically about the private hire and when the garage called back and said they had cleared this with the warranty company.

He is currently waiting a call back from the warranty company and then I have suggested he calls the legal team through his insurance for advice, then pursue the garage.

I'm assuimng that, because of the mileage my OH does (i.e 20k miles since purchse a few months ago) that we may have problems using the sale of goods act with the garage to get money towards the repairs. (repairs are not wear and tear problems though)
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# 6
Flyboy152
Old 07-03-2011, 2:16 PM
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Quote:
Originally Posted by shaun from Africa View Post
It would be a good idea to contact your motor insurance provider and see if they offer legal advice. A lot of them will either give you free advice, or they give you the option for legal cover when taking out the policy.
Will they give advice on action against another insurer?
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# 7
Flyboy152
Old 07-03-2011, 2:21 PM
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Quote:
Originally Posted by clusters View Post
Thanks for your replies so far!

The ts & cs do state NOT for hire or reward, which is exactly why the question was asked (along with the mileage).

My OH spoke to the garage on the phone (as we are in Bournemouth and the garage is in South Yorkshire) and I was with him at the time when he asked specifically about the private hire and when the garage called back and said they had cleared this with the warranty company.

He is currently waiting a call back from the warranty company and then I have suggested he calls the legal team through his insurance for advice, then pursue the garage.

I'm assuimng that, because of the mileage my OH does (i.e 20k miles since purchse a few months ago) that we may have problems using the sale of goods act with the garage to get money towards the repairs. (repairs are not wear and tear problems though)
Based on what you have told us, it is clear there has been mis-selling, however, the difficulty is in proving it. Your testimony may help, but it will depend on the FSA's interpretation of an "independent" witness. Have you put in a complaint to the FSA yet?

As regards the SoGA; what repairs are needed?
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# 8
shaun from Africa
Old 07-03-2011, 2:32 PM
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Quote:
Will they give advice on action against another insurer?
,

I've no idea, but I would have thought that any action would initially have been against the garage that sold the vehicle.
It was this garage that offered the warranty (and presumably took the money), and it was up to them to ensure that the service that they took money for was suitable.

Even if legal action is required to be taken against the warranty providers, they may not be registered as an insurance company so the OP's insurancers may well help out.
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# 9
Wh05apk
Old 07-03-2011, 2:35 PM
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When you bought the car was it obvious what the purpose was? what I mean is, did you ask them to fit meters or anything which would make it obvious what the use was going to be? or was it a garage specialising in private hire vehicles? did you trade in a car with mega miles on?
I am a mortgage adviser.

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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# 10
clusters
Old 07-03-2011, 2:38 PM
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I can't remember the exact details of the first repair, but I know the second is the EGR (electronic gas recirculation) sensor (or closely linked to this).

We have not informed the FSA yet as we only found out this morning that the warranty company is voiding the claim, but I will be planning to involve them at some point.

I understand what you are saying about me not being considered an 'independant witness', but my OH has concerns about the mileage on the vehicle before he purchased it (130k - but these BMW engines go on for miles and miles). The warranty was what convinced him to buy the car as any problems that may flag up in teh first 12 months would be covered.
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# 11
clusters
Old 07-03-2011, 2:40 PM
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Sorry - just spotted the last post - when we first contacted the garage, we told then that the car would be used for private hire (no meters as it is not a taxi).

They were fully aware, as my OH had told them and also questioned it in regards to the warranty.
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# 12
thenudeone
Old 07-03-2011, 5:27 PM
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Every warranty I've seen has an exclusion for vehicles used for hire or reward or public service (police, ambulance) and it's usually clear in the terms.
I think you will struggle to get any joy out of the warranty company as you have been given the terms and, by failing to exercise your right to cancel with 14 days, will be deemed to have accepted them. They may offer you a refund less the cost of the repairs to date, as a goodwill gesture.
Proving that the garage mis-sold the policy will not be easy, but not impossible. For example, I don't suppose the receipt is made out to "Gary's Taxi Company"?
In my experience some car salesmen will say just about anything to clinch a sale - yes we'll do a full service; yes we'll give you a new set of mats, the warranty covers basically everything, etc., even if they turn out to be untrue.
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# 13
Flyboy152
Old 07-03-2011, 5:43 PM
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Quote:
Originally Posted by thenudeone View Post
Every warranty I've seen has an exclusion for vehicles used for hire or reward or public service (police, ambulance) and it's usually clear in the terms.
I think you will struggle to get any joy out of the warranty company as you have been given the terms and, by failing to exercise your right to cancel with 14 days, will be deemed to have accepted them. They may offer you a refund less the cost of the repairs to date, as a goodwill gesture.
Proving that the garage mis-sold the policy will not be easy, but not impossible. For example, I don't suppose the receipt is made out to "Gary's Taxi Company"?
In my experience some car salesmen will say just about anything to clinch a sale - yes we'll do a full service; yes we'll give you a new set of mats, the warranty covers basically everything, etc., even if they turn out to be untrue.
Sadly this is true and doesn't do the trade any good at all.

OP

How did your partner pay for the car? Was it financed?
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# 14
Tilt
Old 07-03-2011, 5:44 PM
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Have you owned the vehicle for 6 months?
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# 15
colino
Old 07-03-2011, 7:54 PM
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Sorry, but for the reason of salesmen saying anything to get a sale, a lot of warranties also state something along the lines of "no part of this warranty can be altered verbally or without express written approval of the warranty provider". The claim is against the misselling of the warranty of the supplying garage, so best find out a BMW independent round your way. (They can often be surprisingly straightforward to fix).
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# 16
clusters
Old 08-03-2011, 8:41 AM
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Flyboy 152 - the car was bought with cash, we have a receipt obviously, but no finance.

Tilt - we have not owned the car for 6 months. I believe it is around 3-4 months.

The warranty comapny has not yet paid us any money, the first claim payment is pending and the second is what has started all of this. I woudl be happy with a full refund from the warranty company and then the garage to pay at least half of the repairs.
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# 17
Tilt
Old 08-03-2011, 9:25 AM
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Quote:
Originally Posted by clusters View Post
Flyboy 152 - the car was bought with cash, we have a receipt obviously, but no finance.

Tilt - we have not owned the car for 6 months. I believe it is around 3-4 months.

The warranty comapny has not yet paid us any money, the first claim payment is pending and the second is what has started all of this. I woudl be happy with a full refund from the warranty company and then the garage to pay at least half of the repairs.
The SOGA says in the first 6 months of ownership, any fault (ex wear and tear) is assumed to be present at the point of sale and as such is the sellers responsibility. However, I do see a problem in the distance you are from the seller because SOGA does allow for the seller to be able to inspect and rectify in the first instance. This is the reason I always advise not buying a used car from an independant garage unless you are in a position to take it back.

As I see this, you are going to have to rely on the T & c's of the warranty. if there is no exclusion for the type of use that you are using the car for then you may have a case against the warranty co. If however the warranty has been miss-sold by the seller, then any case would be against them. The problem is proving it one way or another. What are the 'defects' with the car?
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# 18
Flyboy152
Old 08-03-2011, 12:10 PM
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Quote:
Originally Posted by clusters View Post
Flyboy 152 - the car was bought with cash, we have a receipt obviously, but no finance.

Tilt - we have not owned the car for 6 months. I believe it is around 3-4 months.

The warranty comapny has not yet paid us any money, the first claim payment is pending and the second is what has started all of this. I woudl be happy with a full refund from the warranty company and then the garage to pay at least half of the repairs.
Sorry to ask what may sound lik a silly question, but was it readies, or by cheque/debit card?

If it was by cheque, was a personal cheque or a cheque from his business/trading account?

If it was by debit card, was this on a personal or business account?
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# 19
bigjl
Old 08-03-2011, 12:52 PM
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Quote:
Originally Posted by clusters View Post
Hi there,

My OH is a private hire driver, he purchased a used car from a garage a few months ago. They offered a warranty (through a company they use) on the vehicle.

My OH explained his job (so the car usage would be for gain and reward) and also that he would do some hefty mileage.

The garage said that they had spoken with warranty company and this was all fine.

Anyway - long story short - the vehicle has had a few problems, warranty covered half the cost of the first problem, but our BMW specialist called this morning to say that, when he got in touch with them about the second problem, they have turned around and said they believe this vehicle is being used for reward and thus the policy is void!!!

Where do we stand with this? Obviously, the garage lied to us but I don't know who to start complaints with, who to pursue for repair costs, policy cancellation etc etc (basically, who should I start politely threatening by letter!!!)

Any advise would be greatly received!

Many thanks

The car must be reasonably fit for the purpose for which it was intended, as your OH said it was for Private Hire use then the car must be up to the job, in other owrds high mileage and hard use, even if he isn't covered under the warranty he shouldbe covered under the Sale Of Goods Acts, dependant on how long he has owned it.

Priavte Hire or use for hire and reward would have been in the exclusions in the warranty document, it will be difficult to prove anything without it in writing, you may have to chalk that one up to experience i'm afraid.
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# 20
emmell
Old 09-03-2011, 12:07 AM
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Would the SOGA still apply on a car that's done 20,000 miles in 3-4 months, that's nearly 2 years normal mileage.
I think the reason a lot of taxi drivers buy Skoda's is because they are the only company that will honor the new car warranty with the high mileage the drivers do.
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