When you buy a used car, the dealer might offer a warranty. Some even charge extra for it. But did you know your statutory consumer rights often provide better protection – and they're free?
Here's how they compare.
Understanding Dealer Warranties
What They Are
A dealer warranty is a contract between you and the dealer (or a warranty company). It's a promise to repair or replace certain components if they fail within a specified period.
Typical Terms
- Duration: 3-12 months
- Mileage limit: Often 3,000-12,000 miles
- Coverage: Varies widely – read the fine print
- Excess: Many require a payment per claim (£100-250)
- Cost: Often £300-800 or included in price
Common Exclusions
Most dealer warranties exclude:
- Wear and tear items (brakes, tyres, clutch)
- Pre-existing faults (however they define this)
- Consequential losses (hire car, recovery)
- Failures caused by "neglect" or "misuse"
- Parts not on the covered list
- Vehicles over a certain age or mileage
Understanding Your Statutory Rights
What They Are
Your statutory rights come from the Consumer Rights Act 2015. They apply automatically when you buy from a trader (dealer) – you can't sign them away.
What They Guarantee
Goods must be:
- Of satisfactory quality – Working properly, safe, durable
- Fit for purpose – Capable of being driven
- As described – Matching what you were told
Time Limits
- First 30 days: Full refund for any fault, no repair required
- First 6 months: Repair or replacement; if that fails, reject for refund
- 6 months to 6 years: Rights continue but you must prove the fault existed at sale
Key Differences
Coverage Scope
Warranty:
- Only covers listed components
- Often excludes "wear and tear"
- May have long exclusion lists
Statutory Rights:
- Covers ANY fault that makes the car unsatisfactory
- No exclusion lists
- Includes issues the warranty would reject
Rejection Rights
Warranty:
- ❌ No right to reject
- Only repair/replacement within terms
- Car returned with fault = tough luck
Statutory Rights:
- ✅ 30-day unconditional rejection
- ✅ Rejection after failed repair (within 6 months)
- Full refund available
Claims Process
Warranty:
- Report to warranty company
- They decide if claim is valid
- Often dispute and delay
- May insist on approved garages
Statutory Rights:
- Claim directly against the dealer
- They must respond to your rejection
- Clear legal framework
- Financial Ombudsman if you paid on credit
Excess Payments
Warranty:
- Typically £100-250 per claim
- Adds up quickly with multiple issues
Statutory Rights:
- ✅ No excess
- Full remedy at dealer's expense
Consequential Losses
Warranty:
- ❌ Usually excluded
- No hire car, no recovery costs
Statutory Rights:
- ✅ Can claim reasonable losses
- Hire car, recovery, even lost earnings in some cases
When the Warranty Beats Statutory Rights
In fairness, warranties do have some advantages:
After 6 Months
Statutory rights require you to prove the fault existed at sale. A warranty just needs the fault to occur within the warranty period.
Convenience
Warranties often include breakdown recovery and get you mobile quickly. Statutory claims can take longer to resolve.
Mechanical Sympathy Faults
If something fails due to how you've driven (not a pre-existing fault), a warranty might still cover it. Statutory rights wouldn't.
Peace of Mind
Some people prefer having a document that says "we'll fix this". Even if statutory rights are stronger, they feel less certain.
When Statutory Rights Beat Warranties
Within 30 Days
Warranty: Maybe repair if they accept the claim Statutory: Full refund, your choice, no arguments
Any "Excluded" Fault
Warranty: "Sorry, that's not covered" Statutory: "Is it satisfactory quality? No? Then fix it or refund me."
Rejection After Failed Repair
Warranty: "We'll try again" Statutory: "No, I've given you one chance. Full refund please."
Dealer Disputes
Warranty: Often sided with warranty company Statutory: Clear legal framework, courts if needed, finance company liability
Real-World Examples
Example 1: Engine Warning Light (Within 30 Days)
Using Warranty:
- Call warranty company
- They send you to approved garage
- Diagnosis needed (you wait)
- Claim assessed (you wait more)
- Maybe approved, maybe "pre-existing condition"
- Pay £150 excess
- Still have a car with a history of problems
Using Statutory Rights:
- Write to dealer: "I'm rejecting under Consumer Rights Act 2015"
- They have 14 days to refund you
- Full refund, no excess, clean break
- Buy a different car
Example 2: Gearbox Failure (Month 4)
Using Warranty:
- If gearbox is listed as covered: repair
- If "wear and tear" excluded: nothing
- If excess applies: £200+ contribution
- Weeks in the garage, no car
Using Statutory Rights:
- Write to dealer: fault makes car unsatisfactory
- Request repair under CRA 2015
- If repair fails: reject for refund
- Potentially claim for hire car costs too
How Dealers Use Warranties to Their Advantage
Distraction Tactic
"Don't worry, you've got the warranty" – deflects from their statutory obligations.
Delay Strategy
Warranty claims process takes time. By the time it's rejected, your 30-day window might be closed.
Liability Shift
"That's a warranty claim, nothing to do with us" – false, but many people believe it.
Upselling
Charging extra for something that adds little to your existing rights.
The Smart Approach
Don't Rely Solely on Warranty
Treat it as a bonus, not your main protection. Know your statutory rights and use them when appropriate.
Assert Statutory Rights First
Especially within the first 30 days. The warranty isn't going anywhere – you can fall back on it if needed.
Get Everything in Writing
Whether using warranty or statutory rights, document everything. Verbal promises mean nothing.
Don't Let Them Deflect
If the dealer says "contact the warranty company", remind them of their statutory obligations. They're liable too.
Check What's Actually Covered
Before paying extra for a warranty, read the exclusions. You might be paying £500 for something that excludes most failures.
The Bottom Line
Dealer warranties aren't worthless – they can provide convenient cover for post-sale failures. But they're not a substitute for your statutory rights, and they're often not as good.
Your Consumer Rights Act protections:
- Can't be excluded or limited
- Cover everything, not just listed components
- Include rejection rights the warranty doesn't offer
- Don't require excess payments
When something goes wrong, assess which protection gives you the better outcome. Often, that's your statutory rights.
And remember: the dealer is liable whether or not you have a warranty. Don't let them pretend otherwise.
Dealer pointing you at the warranty instead of taking responsibility? Check if you qualify for our rejection service – we'll enforce your statutory rights.
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