Missold warranty

danshill

Hi,

After some advice lease.

I purchased a car on PCP just over a month ago.

As part of the deal I purchased a 3 year warranty for £600 which was added to my finance deal. It was later discovered that the car has a 7 year manufacturers warranty so the additional warranty wasn't required. The dealership advised they would refund the £600 but this was 3 weeks ago. They keep advising that they have made an error and it will reach me in another 3-4 working days.

I spoke with them last week and they promised (again) that it would be with me Monday at the latest. I checked the bank this morning and still not there. This is the 3rd timescale that has been promised and not met. I really don't know what to do next other than drive down, block the entrance and not move the car until I get the money.

Also, I have questioned the fact that although they are refunding £600 there will be interest accrued on the finance but they don't seem interested in that.

They also missold me a service plan. They informed me that if I didn't take their service plan then the warranty would be void. I questioned it and they advised it was mandatory. It turned out this was also a lie so I cancelled that a few days later.

It really has been a terrible experience.

Thanks in advance.

MyRealNameToo

danshill said:

I purchased a car on PCP just over a month ago.

As part of the deal I purchased a 3 year warranty for £600 which was added to my finance deal. It was later discovered that the car has a 7 year manufacturers warranty so the additional warranty wasn't required. The dealership advised they would refund the £600 but this was 3 weeks ago. They keep advising that they have made an error and it will reach me in another 3-4 working days.

I spoke with them last week and they promised (again) that it would be with me Monday at the latest. I checked the bank this morning and still not there. This is the 3rd timescale that has been promised and not met. I really don't know what to do next other than drive down, block the entrance and not move the car until I get the money.

Also, I have questioned the fact that although they are refunding £600 there will be interest accrued on the finance but they don't seem interested in that.

They also missold me a service plan. They informed me that if I didn't take their service plan then the warranty would be void. I questioned it and they advised it was mandatory. It turned out this was also a lie so I cancelled that a few days later.

Was this a brand new car or a secondhand one?

Have you compared the two warranties? Whilst it may not be cost efficient to have two warranties it is possible for their terms to be different and therefore some may want the added protection of a third party warranty to top up shortfalls in the manufacturers warranty. 

Given its over a month ago they have presumably paid the warrant company for the warrant and so are delaying to wait to get the money back to them pass on to you. 

Have you spoken the PCP company about making a lump sum overpayment to reflect the cancelled warranty?

born_again

Is it a Kia?
You need to make sure the 7 year warranty is still in tact.
If it has not been serviced as per manufacture. Then warranty can/will be void.

sheslookinhot

Any payment promised on a Monday, today or any day, would likely be at the end of the day.

I agree with above. You must check validity of 7 year warranty. You may or may not have this warranty.

Dave_5150

Worth checking you are happy with manufacturers cover level too if it is still valid. It is unlikely to be bumper to bumper cover (e.g. MG and Kia only cover infotainment equipment for up to 36 months).

paul_c123

I'd be keen to see a list of aftermarket warranties which are better than the manufacturer's one. I suspect its a very small (possibly blank) list.

Grey_Critic

When you purchase A NEW vehicle than you benefit from the manufacturers warranty. As a point of interest you can only legally claim on ONE insurance policy. 

The rules on servicing allow for a vehicle to be carried out by a non-franchised dealer on condition you use the manufacturer’s parts and is carried out to the manufacturer’s specification. The dealer cannot impose unfair conditions, He can make a servicing programme conditional - only he can do the work -  but he must make that clear before enetering into the agreement. Selling you another insurance policy was simply sharp practice

It is possible to void a manufacturer’s warranty if the work is claimed on A N Others warranty. For example if you fitted a starter motor and claimed on A N Others warranty if  the part subsequently failed you could not then claim on the manufacturer’s policy.

MyRealNameToo

Grey_Critic said:

When you purchase A NEW vehicle than you benefit from the manufacturers warranty. As a point of interest you can only legally claim on ONE insurance policy. 

Warranties are not typically insurance

What you can and can't claim on depends on the terms of the contracts. Generally you can't have both contracts replace a faulty head unit, if nothing else but from basic practicalities however in some cases if there are two coverages the two firms may share the cost. For example it's common in travel insurance for them to ask if you have another policy that covers your stolen phone such as home insurance, another travel policy from a packaged bank account or a dedicated phone policy. 

There can also be some sections that are not based on indemnity and you can actually claim on more than one, for example travel delay pays out something like £25 per 12 hours delay, you can claim that on top of what the airline has to pay you (if its their fault) and on multiple policies if you have them as its just token payment not intended to cover anything explicitly. 

Grey_Critic

***Warranties are not typically insurance***

Technically Warranties are a form of insurance policy - certainly when you have a non manufacturer warranty they are - Maybe I should have said you cannot claim against two warranties for the same repair. 

In all my years as a warranty manager I never had a manufacturer pay out to a third party - the exception was Fleet Operators who were registered - 

born_again

Grey_Critic said:

***Warranties are not typically insurance***

Technically Warranties are a form of insurance policy - certainly when you have a non manufacturer warranty they are - Maybe I should have said you cannot claim against two warranties for the same repair. 

In all my years as a warranty manager I never had a manufacturer pay out to a third party - the exception was Fleet Operators who were registered - 

If it is a insurance product, then the seller needs to be FCA registered.

Example
https://www.warrantywise.co.uk/car-warranty

Warrantywise and Warrantywise Logo are trademarks of Warrantywise. The website "www.warrantywise.co.uk" and contents herein are for information purposes only. This does not form part of any contract of protection. Any and all Warranty Plan confirmation including Warranty Plan Documents and Application Forms will be issued upon purchase. It is important that you read our information supplied and then make your own choice of warranty plan together with any plan additions that you may need as a vehicle owner who demands to ensure that your vehicle warranty requirements are met now and in the foreseeable future. Terms and Conditions apply and are provided by Warrantywise available to download here or upon request by calling 0800 169 7880. Warrantywise Limited (No. 07963594 ) and Warrantywise UK Limited (No. 14775172) both trading as Warrantywise are companies registered in England and Wales at The Rocket Centre, 3 Trident Way, Blackburn, Lancashire, BB1 3NU and both are part of Wise Group Holdings Limited, Company No. 10613336. Warrantywise Limited (VAT registration number 264 8618 71) and Warrantywise UK Limited (VAT registration number 437 8119 76) are VAT registered companies. All prices and monetary figures are quoted include VAT at the current rate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

*Please refer to specific plan terms and conditions.

*Price promise.

Our price promise is applicable to any level of cover you have been quoted for, where the level of cover is the same, often referenced as 'like-for-like'.
Where we can't provide a 'like-for-like' quote, we will be provide a bespoke quote based on your needs, which we guarantee will be the best on price & cover. In order to activate our price promise, proof of an active quote (within previous 30 days) is required. We do not match exclusive discounts. E.g student / NHS / blue light staff. We reserve the right to refuse a price match where we suspect fraud or unauthorised reseller activity.
These terms and conditions shall be governed by and construed in accordance with English Court Law. We reserve the right to change or cancel this promise with notice. Please call our warranty experts to activate our price promise.

Not one mention of being FCA registered, which they would need to be for a insurance policy.

MyRealNameToo

Grey_Critic said:

***Warranties are not typically insurance***

Technically Warranties are a form of insurance policy - certainly when you have a non manufacturer warranty they are - Maybe I should have said you cannot claim against two warranties for the same repair. 

In all my years as a warranty manager I never had a manufacturer pay out to a third party - the exception was Fleet Operators who were registered - 

No they're not Grey_Critic, most spend a lot of time/effort to ensure they arent legally insurance. If they are and the seller is the one assuming the risk then they would need to be authorised by the PRA as an insurer and regulated by the FCA as a seller/insurer. You would also have the right to go to the Financial Ombudsman. 

To keep picking on WarrantyWise their policy book explicitly states:

Q - How does this warranty work?

A - The warranty is not insurance based. It is a contractual relationship where Warrantywise and Edd China has a discretion as to how to handle repairs, so they can be dealt with in a fair and reasonable manner in all cases.

Certainly some have decided to go a different path, but if you look at MotorEasy they are FCA registered but thats for their GAP Insurance, Alloy Policy and Wheel Policy, their warranty equally isnt insurance..