Motorists Could Face Repair Costs of GBP300 Million as They Come Out of Manufacturer Warranty

BURNLEY, England, September 1, 2010 -- According to new data by Warrantywise, the UK's leading warranty provider, over 1 million* cars due to come out manufacturer warranty in September 2010 could cost their owners over GBP300 million in repair bills in the fourth year of ownership. (*Source: Warrantywise estimate, August 2010).

Each motorist could face an annual repair bill of over GBP700* in the fourth year of ownership alone, with top faults like Sensors, Steering and Suspension, and Alternators most likely to fail.

Table 1: Top 3 faults - average costs in year 4

    
        Vehicle        Fault         Fault         Fault     Ave Repair
                                                                Cost

     BMW 3 Series   Turbocharger      ABS        Electrical    GBP556
                      GBP1,130       GBP690        Faults
                                                   GBP332

        VW Golf        Sensor       Gearbox       Steering     GBP432
                                                   System
                       GBP199       GBP1,167       GBP362
                                                   
        Audi A4       Gearbox     Fuel system     Ignition     GBP630
                                                    Coil
                      GBP1,709       GBP505         GBP98
                                                   
    Vauxhall Astra   Alternator    EGR Valve     Suspension    GBP411
                       GBP287        GBP448         181

      Ford Focus     Alternator     Air Con     Fuel System    GBP305
                       GBP178        GBP385        GBP528

     BMW 5 Series    Suspension   Turbocharger  Fuel System    GBP506
                       GBP549       GBP1299        GBP507

    Vauxhall Corsa    Steering       Engine      EGR Valve     GBP320
                       System
                       GBP742        GBP641        GBP357
                       
        Audi A3       Cylinder      Radiator    Turbocharger   GBP521
                    Head Gasket      GBP249       GBP1,275
                      GBP1,134
                                     
      Ford Fiesta      Clutch     Fuel System    Suspension    GBP370
                       GBP183        GBP433        GBP136

    Mercedes-Benz C  Suspension  Air Flow Meter  Alternator    GBP442
         Class         GBP276        GBP312        GBP486

Lawrence Whittaker, Managing Director of Warrantywise, comments: "The common arguments for not getting a warranty often start with the notion that modern cars are 'reliable'. However, a car is a mechanical object and as with all mechanical objects, the chances of a part failing are extremely high. Manufacturers that were considered to be reliable 10 years ago may be holding onto that reputation, but the figures for warranty claims show that certain manufacturers have sacrificed quality for volume, as we have seen with Toyota recently.

"The second argument is that warranties aren't worth the paper they are written on'. However, not all warranties are equal and with Warrantywise, motorists can save hundreds of pounds on repair bills.

"By getting a warranty, you can effectively be 'in profit' if you compare the costs of a warranty to the likelihood of major failure. Our Warrantywise Policy has been designed for people to claim on, which is a very different product than other warranty policies. Over 59% of our customers make a claim on their warranty in the first 12 months according to our figures."

Caroline Burnell, +44(0)20-7025-8044, caroline@thedrumconsultancy.co.uk