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Warranty Direct claims dealers overcharge for extended warranties

A warranty can cost over twice as much from a franchised dealer than an independent insurer, claims the independent firm Warranty Direct.

The firm's own research on extended warranties for 20 models, representing seventeen manufacturers, showed franchised dealers charged an average of £614 for a twelve-month extended policy, compared to £239 from Warranty Direct. The biggest difference recorded was from a Jaguar retailer who quoted £1,014 for a one-year extension on an S-Type V6 SE Auto compared to £320.23 from Warranty Direct.

The firm also says some dealers quoted inspection fees as high as £176 and insisted on carrying out servicing before they would grant extended warranty cover. Some dealers also refused to sell a policy on cars that had not been purchased from them.

Pursuing Warranty Direct's war of words against captive competitors, MD Duncan McClure Fisher said in a release yesterday, "This is another example of franchised dealers ripping off unsuspecting motorists. Not only do they get away with premium labour rates, but they charge over-inflated prices for extended warranties."

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