Engine failure warranty claim

The consumer’s issue:

“My five-year old vehicle, which has 42,000 miles on the clock, and is fully dealer maintained, has suffered an engine failure. I did not know that my extended warranty was limited to a maximum claim of £2,500 for repairs, so I had to pay a total cost of £3,500. Additionally, whilst my car was undergoing repair work, I had no choice but to hire a vehicle. 

Overall, a modern engine that has been regularly maintained by a dealership should last longer than 42,000 miles or five years. This therefore this shows that the vehicle is not fit for purpose. I would like my warranty provider to pay for the repairs and to provide compensation for my consequential losses – namely the cost of the hire vehicle.”

The accredited business’ response (the vehicle manufacturer):

  • The customer had an engine failure which is covered by the extended warranty (administered by us), but the maximum payout for repairs under the agreement is £2,500.
  • Therefore, we covered the first £2,500 of the repair costs, but we do not have a legal obligation to cover the remaining costs, and due to the age and mileage of the vehicle, we will not be offering any goodwill offered towards the costs.
  • Additionally, we will not be reimbursing any of the customer’s expenses.

The adjudication outcome:

  • The business had fulfilled its contractual obligations by limiting its payment to the amount required by the warranty agreement, and therefore the customer’s complaint was not upheld by The Motor Ombudsman’s adjudicator.
  • The customer was informed that should they wish to make a complaint regarding the quality of the vehicle they were sold, then such a complaint must be brought against the seller.

Conclusion:

  • The customer and the accredited business accepted the outcome as recommended by The Motor Ombudsman adjudicator and the case was closed.