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OFT starts consumer campaign on warranty terms

The OFT has launched its promised campaign to get car buyers to check the terms and conditions of manufacturer warranties on offer with new and nearly-new cars.

Following the OFT's investigation of manufacturer warranties last autumn, car buyers are warned to look out, in particular, for servicing restrictions that limit their choice of where to get their car serviced, and which may mean they pay more for routine servicing.

Since the launch of its study into the market for car warranties, the OFT says some manufacturers have indicated that they are lifting dealer servicing restrictions, but at least a quarter of all new cars sold still have warranties requiring owners to have cars serviced only within the franchise network. .

The OFT has recruited the RAC and motoring magazines as allies in promoting its campaign. It has produced a leaflet with ten questions to ask about the warranty before buying a new car, which will be available from RAC sales agents in town and shopping centres and will be distributed by consumer car magazines.

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