25 July 2008 / by Rebecca Sargent
As the credit crisis hits motorists in the UK with increased petrol and tax costs, Tesco Personal Finance has launched a series of new warranties that could help spread the cost of owning a car.
With the Tesco Car Warranty plans, customers can protect their cars and pockets for as little as £9.90 a month. Providing the car is under 10 years old and has less than 100,000 miles on the clock, the warranty plans will cover it.
As car insurance, tax and petrol costs all suffer at the hands of the credit crisis, a warranty could offer respite and relieve motorists of huge repair bills that are just not feasible in today’s financial climate. Without the warranties, car parts can cost as much as £887 for a gearbox, which could severely dent most people’s pockets.
According to Tesco Personal Finance, the plans could offer relief for the motorists who are putting off buying a new car until the economy settles. Research for Tesco Personal Finance revealed that more than half of drivers questioned intend to keep their vehicle for longer than previously thought, with more than a third saying they would be keeping their vehicle for an extra two years.
Head of insurance at Tesco Personal Finance, Alan Burns, said: “Figures from the Society of Motor Manufacturers and Traders suggest the average age of the 24 million licensed cars on UK roads is 6.8 years and if, as our survey suggests, that is likely too increase, the number of repairs needed is also set to rise. Many motorists worry about the cost of repairs but up until now it has been quite difficult to buy a warranty once the manufacturer’s has lapsed.
“The grim reality is, however, that the older a car becomes and the higher its mileage, the greater the chances of its going wrong and the more expensive it could be to repair. In addition, cars are becoming increasingly sophisticated, with even the most basic being fitted with technology that a few years ago was only found on executive vehicles.
“We believe in offering motorists the choice of protecting themselves even after the manufacturer’s warranty has expired, helping them to guard against large repair bills and bring down the cost of motoring,” he concluded.
© Fair Investment Company Ltd