UK: Office of Fair Trading launches new car warranty probe
The UK government’s consumer watchdog, the Office of Fair Trading, on Monday launched a study into warranties for new cars, focusing on how competition in car servicing is affected by restrictions on where cars may be serviced during the warranty term. The OFT said the value of servicing linked to warranties could be in excess of £1 billion a year. In addition to the manufacturer's warranty (usually one or two years), new cars are often sold with a dealer extended warranty that increases the warranty to three years.
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