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Other manufacturers could follow Vauxhall’s decision to stop lifetime warranty

Time 7 years ago

Vauxhall CorsaTHE demise of Vauxhall’s lifetime warranty could result in a ‘domino effect’ with other manufacturers, according to Warranty Direct.

Vauxhall announced yesterday that from 2015 it would no longer provide its lifetime/100,000 miles warranty. It blamed the move on the rise of tempting financing offers, which now account for 65 per cent of new car sales. After three years buyers are choosing to replace their car with a new one, rolling the finance deal over into a new three-year period.

Warranty Direct claim this could result in an ‘exodus’ of other car manufactures from the market, as they also realise there is reduced value in offering lifetime warranties.


Warranty Direct managing director David Gerrans said: ‘In many ways, it’s a shame for car buyers, but the reality is that the cover was never actually sufficient. The small print in all these longer warranties contains a number of caveats that can greatly limit their effectiveness long before the policy elapses.

‘Vauxhall’s decision is sure to make other car makers think twice – an exodus from the market is possible because, if the cover is less comprehensive than that of aftermarket providers, the customer is not the winner.’

Rebecca Chaplin's avatar

Rebecca has been a motoring and business journalist since 2014, previously writing and presenting for titles such as the Press Association, Auto Express and Car Buyer. She has worked in many roles for Car Dealer Magazine’s publisher Blackball Media including head of editorial.

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