Warranty on a 3 year old car...
Discussion
I've only ever bought cheap cars in private sales so this is something I have no knowledge or experience of...
I'm looking at buying a Skoda Karoq or Seat Ateca around 3 to 4 years old in the £16k price range, financing it over 3 or 4 years. It seems a trader/car supermarket type place will offer 3-6 months warranty and approved used from a main dealer will offer 6-12 months.
How important is the warranty at this age and price range? Is purchasing an extended warranty a must? Is it not worth it and just taking what's offered good enough? I'm really not sure what the thought process is so any help appreciated, thanks.
I'm looking at buying a Skoda Karoq or Seat Ateca around 3 to 4 years old in the £16k price range, financing it over 3 or 4 years. It seems a trader/car supermarket type place will offer 3-6 months warranty and approved used from a main dealer will offer 6-12 months.
How important is the warranty at this age and price range? Is purchasing an extended warranty a must? Is it not worth it and just taking what's offered good enough? I'm really not sure what the thought process is so any help appreciated, thanks.
Edited by HelterSkelter on Friday 9th February 22:25
I suppose it's more a question of mindset - are you going to worry about it all the time, or just deal with issues as they arise?
On the cars that you're looking at, if you'd be happy to stick with dealer servicing, then VW Group do an "All In" plan that cover basic servicing, MOT, Roadside assistance and Warranty and it costs around £35/mth. You buy it 2yrs at a time and the last one has to be taken out before the car is 6yrs old, so if time it right you can cover until the car is just about 8yrs old.
Of course, dealer servicing isn't for everyone, and it does put you in the firing line for plenty of upselling pressure on discs and pads, tyres etc etc. So you may be more comfortable with general garage servicing, or DIY if you're happy working on cars.
On the cars that you're looking at, if you'd be happy to stick with dealer servicing, then VW Group do an "All In" plan that cover basic servicing, MOT, Roadside assistance and Warranty and it costs around £35/mth. You buy it 2yrs at a time and the last one has to be taken out before the car is 6yrs old, so if time it right you can cover until the car is just about 8yrs old.
Of course, dealer servicing isn't for everyone, and it does put you in the firing line for plenty of upselling pressure on discs and pads, tyres etc etc. So you may be more comfortable with general garage servicing, or DIY if you're happy working on cars.
Could always get an all in one package if worried.
https://www.skoda.co.uk/owners/all-in-service-plan
My thought process is, I’d start worrying when the manufacturer won’t cover the car with a warranty, that is when at a fleet level, they will expect big bills.
So Skoda, the oldest car they will cover for 2 years is 6 years old and 100k miles. So that means they think an 8 year old car that has done say 116,000 miles isn’t economic to cover.
My other thought process surrounds their component design life, for VAG group its 8 to 10 years at about 10k km a year. So 60k miles or 8 years in, I’d expect to have to start replacing consumables and other parts.
So if you have brought a well maintained, average mileage 3 year old car, you will likely be able to use it with minimal maintenance and routine servicing for another 3 or 4 years. By the time your finance is up, it will start needing more maintenance. On average, very roughly, although of course there are all sorts of variables.
https://www.skoda.co.uk/owners/all-in-service-plan
My thought process is, I’d start worrying when the manufacturer won’t cover the car with a warranty, that is when at a fleet level, they will expect big bills.
So Skoda, the oldest car they will cover for 2 years is 6 years old and 100k miles. So that means they think an 8 year old car that has done say 116,000 miles isn’t economic to cover.
My other thought process surrounds their component design life, for VAG group its 8 to 10 years at about 10k km a year. So 60k miles or 8 years in, I’d expect to have to start replacing consumables and other parts.
So if you have brought a well maintained, average mileage 3 year old car, you will likely be able to use it with minimal maintenance and routine servicing for another 3 or 4 years. By the time your finance is up, it will start needing more maintenance. On average, very roughly, although of course there are all sorts of variables.
Edited by wyson on Friday 9th February 22:59
One point would be that Toyota (and Lexus) offer up to 10 years warranty for free if serviced with them. So again if you can put up with main dealer servicing, that could be worth considering.
Also Kias have a 7 year warranty from new, so a 3yo car would have another 4 years cover (and I think that requires servicing but not main dealer servicing).
Also, third party warranties (i.e. not manufacturer extended warranties) have a lot of dissatisfied customers in general, their profit margin seems to come from finding reasons not to pay out, or e.g. to pay the £50 to replace your snapped timing belt, but not the £5000 to rebuild your engine after the valves hit the pistons as a result of it snapping ("consequential damage").
So likely either manufacturer extended warranty of some form, or don't bother I'd say.
I'd also research the engine and gearbox of a car you're considering for known issues, e.g. JLR Ingenium diesels.
Also Kias have a 7 year warranty from new, so a 3yo car would have another 4 years cover (and I think that requires servicing but not main dealer servicing).
HelterSkelter said:
It seems a trader/car supermarket type place will offer 3-6 months warranty and approved used from a main dealer will offer 6-12 months.
Under Consumer Rights Act 2015, if you buy a used car from a dealer and a fault arises within six months of purchase, then legally the fault is assumed to have been present at the point of sale and it's the dealer's responsibility to resolve it unless they can prove it was caused subsequently. So with a 3yo car from a dealer, legally you're in quite a strong position - often the '3 months warranty included' is a distraction from the contractual rights you'd have anyway.Also, third party warranties (i.e. not manufacturer extended warranties) have a lot of dissatisfied customers in general, their profit margin seems to come from finding reasons not to pay out, or e.g. to pay the £50 to replace your snapped timing belt, but not the £5000 to rebuild your engine after the valves hit the pistons as a result of it snapping ("consequential damage").
So likely either manufacturer extended warranty of some form, or don't bother I'd say.
I'd also research the engine and gearbox of a car you're considering for known issues, e.g. JLR Ingenium diesels.
I suppose an extended warranty is basically an insurance product. What you need to work out is what your attitude towards risk is and what the insurance actually covers.
I had a look at what the 10 year 100k Toyota warranty covers, and to be honest the info was mainly about things it didn’t cover. everything I have ever had go wrong with a car wasn’t covered.
Doing some basic man maths I suspect I would be better off having a Toyota serviced cheaper at an independent, than paying main dealer servicing on the slim chance they would pay out on any warranty claim.
But at the same time they could pay out for something massive and you’re incredibly relieved you had the warranty.
Damned if you do, damned if you don’t.
I had a look at what the 10 year 100k Toyota warranty covers, and to be honest the info was mainly about things it didn’t cover. everything I have ever had go wrong with a car wasn’t covered.
Doing some basic man maths I suspect I would be better off having a Toyota serviced cheaper at an independent, than paying main dealer servicing on the slim chance they would pay out on any warranty claim.
But at the same time they could pay out for something massive and you’re incredibly relieved you had the warranty.
Damned if you do, damned if you don’t.
I bought our 3 year old Volvo from a main dealer because I wanted the peace of mind of a manufacturer approved warranty. All the electronics seem complex to me and I assume expensive to fix.
Third party insurance warranties are generally considered a complete waste of money. That said, I see some now cover wear and tear (I.e. if a failed part is caused by a wear and tear part, the failed part is covered (I think!)). These are more expensive, but maybe worthwhile.
Third party insurance warranties are generally considered a complete waste of money. That said, I see some now cover wear and tear (I.e. if a failed part is caused by a wear and tear part, the failed part is covered (I think!)). These are more expensive, but maybe worthwhile.
HelterSkelter said:
I've only ever bought cheap cars in private sales so this is something I have no knowledge or experience of...
I'm looking at buying a Skoda Karoq or Seat Ateca around 3 to 4 years old in the £16k price range, financing it over 3 or 4 years. It seems a trader/car supermarket type place will offer 3-6 months warranty and approved used from a main dealer will offer 6-12 months.
How important is the warranty at this age and price range? Is purchasing an extended warranty a must? Is it not worth it and just taking what's offered good enough? I'm really not sure what the thought process is so any help appreciated, thanks.
In your situation I'd buy an AUC, then that way you'll get a years warranty that you can extend warranty after so it spans the life of the finance. I'm looking at buying a Skoda Karoq or Seat Ateca around 3 to 4 years old in the £16k price range, financing it over 3 or 4 years. It seems a trader/car supermarket type place will offer 3-6 months warranty and approved used from a main dealer will offer 6-12 months.
How important is the warranty at this age and price range? Is purchasing an extended warranty a must? Is it not worth it and just taking what's offered good enough? I'm really not sure what the thought process is so any help appreciated, thanks.
Edited by HelterSkelter on Friday 9th February 22:25
The question is, what does a warrnty cover, and what risks doesn't it cover?
What can go wrong resulting in a Very Big Bill?
Or series of 'significant' bills?
Personally, I've always bought old cars with no credible warranty.
This means I am at some risk of losing everything I've spent on the car.
In about 40 years of driving, I got it wrong once or twice, one car the gearbox seized within 6 months of buying the car, another wrecked the engine.
These days, I would be more concerned about electronics, complex transmission systems and engines which are highly strung due to being dragged beyond their performance/emissions comfort zone.
Stuff I'm confident that my local garage can fix, I'm reasonably happy with taking the risk.
When you're talking about 3 year old cars with high levels of adaptive cruise/lane keeping/self-braking, having heard too many stories of grief with new cars, I would be wary of running one out of warranty.
Where to draw the line, and what faith I'd place in a 3rd party warranty are difficult questions.
You have to understand the risks, and convince yourself you're happier carrying those risks than paying more,
Or you drive something more towards the shed end of the spectrum.
People who pay £XXX a month to lease a car and have few risks are not always wrong!
That's just my thoughts, other people think differently and I find it quite interesting, people's psychology of money and 'stuff'.
What can go wrong resulting in a Very Big Bill?
Or series of 'significant' bills?
Personally, I've always bought old cars with no credible warranty.
This means I am at some risk of losing everything I've spent on the car.
In about 40 years of driving, I got it wrong once or twice, one car the gearbox seized within 6 months of buying the car, another wrecked the engine.
These days, I would be more concerned about electronics, complex transmission systems and engines which are highly strung due to being dragged beyond their performance/emissions comfort zone.
Stuff I'm confident that my local garage can fix, I'm reasonably happy with taking the risk.
When you're talking about 3 year old cars with high levels of adaptive cruise/lane keeping/self-braking, having heard too many stories of grief with new cars, I would be wary of running one out of warranty.
Where to draw the line, and what faith I'd place in a 3rd party warranty are difficult questions.
You have to understand the risks, and convince yourself you're happier carrying those risks than paying more,
Or you drive something more towards the shed end of the spectrum.
People who pay £XXX a month to lease a car and have few risks are not always wrong!
That's just my thoughts, other people think differently and I find it quite interesting, people's psychology of money and 'stuff'.
For a daily I much prefer having a manufacturer warranty so it's a case of dropping it off having the issues dealt with while driving a courtesy car. 3rd party warranties seem less attractive and much more hassle but I guess they are cheaper. Modern cars seem to be pretty reliable mechanically but with exponentially increasing levels of tech there is so much on that side to go wrong.
Gassing Station | Car Buying | Top of Page | What's New | My Stuff