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?
For guidance on understanding insured vs uninsured warranties, see our dedicated guide.
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
Warranties typically last 3-12 months with a mileage limit of 3,000-12,000 miles. Coverage varies widely – you must read the fine print. Many require an excess of £100-250 per claim, and they cost £300-800 (or are included in the 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, and 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), and as described (matching what you were told).
Time Limits
These are the key time limits for rejection. In the first 30 days, you can get a full refund for any fault with no repair required. In the first 6 months, you can request repair or replacement, and if that fails, reject for a refund. From 6 months to 6 years, your rights continue but you must prove the fault existed at sale.
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Key Differences
Coverage Scope
Warranty only covers listed components, often excludes "wear and tear," and may have long exclusion lists. Statutory rights cover ANY fault that makes the car unsatisfactory, have no exclusion lists, and include issues the warranty would reject.
Rejection Rights
Warranty offers no right to reject – only repair or replacement within terms. If the car comes back with the fault, tough luck. Statutory rights give you a 30-day unconditional rejection, rejection after failed repair (within 6 months), and a full refund.
Claims Process
Under warranty, you report to the warranty company, they decide if the claim is valid, they often dispute and delay, and they may insist on approved garages. Under statutory rights, you claim directly against the dealer, they must respond to your rejection, there's a clear legal framework, and you can go to the Financial Ombudsman if you paid on credit.
Excess Payments
Warranty claims typically cost £100-250 per claim, which adds up quickly with multiple issues. Statutory rights have no excess – the full remedy is at the dealer's expense.
Consequential Losses
Warranty usually excludes consequential losses – no hire car, no recovery costs. Statutory rights allow you to claim reasonable losses including hire car, recovery, and 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: You call the warranty company, they send you to an approved garage, diagnosis is needed (you wait), the claim is assessed (you wait more), it may be approved or dismissed as a "pre-existing condition," you pay £150 excess, and you still have a car with a history of problems.
Using Statutory Rights: You write to the dealer stating you're rejecting under the Consumer Rights Act 2015. They have 14 days to refund you. Full refund, no excess, clean break – and you buy a different car.
Example 2: Gearbox Failure (Month 4)
Using Warranty: If the gearbox is listed as covered, they'll repair. If "wear and tear" is excluded, you get nothing. If an excess applies, you're paying £200+. And you spend weeks in the garage with no car.
Using Statutory Rights: Write to the dealer explaining the fault makes the car unsatisfactory. Request repair under the CRA 2015. If the repair fails, reject for a refund. And you can 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.
Recommended reading
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, and don't require excess payments. When something goes wrong, assess which protection gives you the better outcome – and 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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