Generally speaking the cost of the warranty reflects how risky the car is needing attention during the course of the year, in which the warranty has been extended. One thousand pounds is not an unusual annual charge for a quality vehicle, going up to as much as £5000 per year for the top range luxury vehicles.
As engines and many components have become more reliable, today’s electronics have rendered vehicles less reliable, not only less reliable but much harder to repair. Mechanical problems used to be quite common, particularly in British cars due to the poor levels of workmanship, in the days of a very strong union movement in the car industry.
Some will perhaps remember as a child going out for a Sunday drive, where their father always had a toolbox in the boot, at the ready to fix the car when broke down, as it inevitably did. The grass verges would be littered with broken down vehicles in various states of repair. Car owners would have their overalls on and theirs heads under the bonnet but with their small amount of mechanical knowledge they or one of their fellow motorists would usually get it going.
During that time many motorists would carry spare parts such as spark plugs and fan belts, that tended to break. If a vehicle breaks down today a fully trained motor mechanic would have little more chance of repairing it than someone with no mechanical knowledge. The only answer in the vast majority of cases is for the vehicle to be put onto a tow truck and taken to the main dealership.
Furthermore dealerships do not start the diagnostics process to ascertain how much the necessary repair will cost; once the diagnostics start, in most cases, the charging process has started. It is also not a simple matter of pinpointing the problem and curing it. Most of the time a quick technical review will only vaguely show where the fault lies; there is no silver bullet.
Contract hire and leasing companies normally dispose of their vehicles after three years, however if they do arrange a four year contract hire term it is imperative for the person hiring the car to be aware that if they do not opt for a maintenance contract, they are responsible for the vehicle if it goes wrong in the last year.
if the leasing company is not willing to take the responsability of the car if it does not come with a warranty, then the hirer should carefully think about it. Many companies exist that offer vehicle warranties but many are very poor at paying claims and there is no substitute for a manufacturers warranty; in most cases it will mirror the original warranty, sometimes with additional conditions but usually nothing to worry about.
It can be a good idea before buying any second hand car, to look at the cost of three years contract hire for a new car of the same model. Many who have not previously looked at this method of acquiring vehicles will often be very surprised at how much more sense it makes financially, particularly when adding the benefit keeping their cash in the bank.
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