Vauxhall Motors has announced its Lifetime Warranty programme, originally launched in 2010, will end.
From January 2015, Vauxhall cars and vans will carry a 3 year/60,000 mile warranty instead.
Tim Tozer, Vauxhall’s Chairman and Managing Director cited the changing ownership landscape and significant investment in new technology as key drivers for the change. “In today’s market, 65% of retail sales are supported by a finance package resulting in fewer customers retaining their cars beyond three years. Couple this with a €4 billion investment in high technology powertrains and it no longer makes business sense to invest in 100,000 mile warranty cover.”
Existing vehicles with Lifetime Warranty will continue to be covered for up to 100,000 miles but only whilst the vehicle remains with the first owner, subject to annual validation.
Warranty Direct had previously questioned the quality of cover provided directly by manufacturers for cars over three-years old, highlighting how protection quickly tapers off and small print loopholes render policies useless as mileage and age increase.
Warranty Direct managing director, David Gerrans, said: “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.”