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."