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What happens to MG/Rover warranties if they go belly up

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Old 12 April 2005, 12:00 AM
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ScoobyDriverWannabe
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Default What happens to MG/Rover warranties if they go belly up

A m8 of mine is considering buying a MG zr 160. What happens to the warranty etc if they do go bankrupt, which it’s looking a lot like what is going to happen.

Last edited by ScoobyDriverWannabe; 12 April 2005 at 12:05 AM.
Old 12 April 2005, 12:03 AM
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pslewis
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I 'think' the warranty - for the 2nd and 3rd years is an insurance policy, so should cover him anyway.

But who would want to buy a Rover?? Not just NOW, but EVER???

Pete
Old 12 April 2005, 09:15 AM
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Dr Hu
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I would tell him to push for a *very* big discount - if it does go **** up the value new & secondhand will fall through the floor IMO
Old 12 April 2005, 09:18 AM
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T4molie
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Originally Posted by pslewis
But who would want to buy a Rover?? Not just NOW, but EVER???
I have to agree with this Unless your mate is planning on keeping it for the duration of it's life - ie till it goes to the knackers yards then I wouldn't really be wanting to buy cos the re-sale value is gonna drop quicker than a meteor hitting earth
Old 12 April 2005, 11:46 AM
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My M8's dad happens to be changing his motor this week (he has a 02 registered Rover 25 mint with 26K on it) yesterday one garage said we will give you 2K for it and another said we don't want to take it at all
Old 12 April 2005, 11:54 AM
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penfold118
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Went past the local Rover garage ( Priory Nottingham ) and they had a MG ZT reduced from £15995 to £10995....!!!! and that was the ticket price before you started to negotiate a deal, makes you wonder how much more they will loose in value...!!!!

Last edited by penfold118; 12 April 2005 at 11:56 AM.
Old 12 April 2005, 12:14 PM
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But yesterday did'nt the MG ROVER bosses send all the staff home on full pay i thought they were skint!! The government i have herad have lent then something like 6 or 7 million and that will only last for about a week .

i would be interested to find out why the deal with the chinease company went tit's up in the fisrst place
Old 12 April 2005, 12:15 PM
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Blimey

With regard to warranties, it's the dealers that should be really getting nervous. Consumers have the protection of the law requiring goods to be of merchantable quality, fit for their intended purpose, free of defects and so on. If something goes badly wrong, I believe the supplying dealer is liable and not the manufacturer - so they'd have to cough up.

A warranty may smooth out the whole process and may grant the purchaser additional rights over and above their statutory rights, but it's a popular misconception that once the warranty has expired, the dealer is absolved of any further responsibility. The buyer's contract is with the dealer and not the manufacturer.

I'm SO glad I don't have a Rover franchise right now!
Old 12 April 2005, 01:01 PM
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Originally Posted by pslewis
I 'think' the warranty - for the 2nd and 3rd years is an insurance policy, so should cover him anyway.

But who would want to buy a Rover?? Not just NOW, but EVER???

Pete

He currently has a Renault Clio which he has had nothing but trouble with. He now has the option to give the car back to Renault so needs a replacement.

The company who he works for has some kind of deal with MG/Rover which will give him quite a bit of discount.

That along with the price falls due to their troubles would make the car a rather good buy for little money.
Old 12 April 2005, 01:26 PM
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pslewis
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Originally Posted by ScoobyDriverWannabe
That along with the price falls due to their troubles would make the car a rather good buy for little money.
Whatever it is, it won't be cheap enough .............. do him a favour and point him to a Japanese car (why anyone buys anything else bewilders me!)

Pete
Old 12 April 2005, 02:03 PM
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If it's a company car I'd still push against getting a Rover with all my might. If it's a personal purchase then IMHO it's lunacy to purchase a new or used rOVER right now. We all know that the car takes an initial hit when it's driven off the forecourt anyway, add in the fact that the majority of people will not purchase a rover due to the current situation and a brand new car would take a massive hit.

Even before all this, I'd have said to say away from Rover/MG, as they are not the best cars in the world.
Old 12 April 2005, 02:23 PM
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We can all slag rovers off but it's a serious question - my secretary bought herself one last year and is wondering whether the remaining two years of the warranty will be honoured. Can't see relying on the dealer being much use - presumably they'll go **** up / change hands to different brands anyway?

Gordo
Old 12 April 2005, 02:37 PM
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It sounds dubious to say the least... Right now it's OK, as they're still in Administration - but come what may, it could be in the lap of the dealers:

http://news.ft.com/cms/s/950ef0ce-a9...00e2511c8.html

Shades
Old 12 April 2005, 06:47 PM
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fatscoobyfella
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If Rover does go..surely all the dealerships will go to along with spare parts and warranty departments etc etc..So sayin you had made the initial mistake of owning a Rover and something went wrong..where would you actually take it??
Would it be a garage of your choice,who then try and claim the money for the repairs off some 3rd party?
Are bits gonna be available a few years down the line to repair the cars??
The contracted suppliers stopped selling Rover the bits and they seem knacked within a few days..
Im glad i dont own one..i would be gettin rid asap,within 6 month owning one will be like having a dose..
Old 12 April 2005, 07:56 PM
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Whilst your warranty might be very dodgy, if you end up getting e.g. a new MG-ZT for no more than a basic 1.6 Focus, looks to me like a perfectly good reason to buy a Rover. Realistically, residuals will be low and you may need to underwrite any repairs yourself, but that will be a risk you can assign a "likely" cost to. If you get a discount much bigger than that likely cost, you may as well buy. If you don't, don't buy.

Just my take on things.
Old 12 April 2005, 10:26 PM
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Originally Posted by hades
Whilst your warranty might be very dodgy, if you end up getting e.g. a new MG-ZT for no more than a basic 1.6 Focus, looks to me like a perfectly good reason to buy a Rover. Realistically, residuals will be low and you may need to underwrite any repairs yourself, but that will be a risk you can assign a "likely" cost to. If you get a discount much bigger than that likely cost, you may as well buy. If you don't, don't buy.

Just my take on things.
Got to agree with this. Let's face it, many car companies have fallen by the wayside over the years and yet parts are still, in the main, plentiful. There will be a swell in pattern parts manufacturers once the cars are no longer produced by Rover. Factor in the cost of repairs and getting an 18k car for 10k still sounds like a bargain to me.

And despite their bad press I don't think the Z range are bad cars, and nor do plenty of others.
Old 12 April 2005, 10:30 PM
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mart360
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Its a bit of a grey area,

normally tier one suppliers are contracted to supply parts for the vehicle for ten years after the vehicle finishes production....

however, who will be paying for the spares....

if someone like unipart stumps up then fine,, if not, no spares..


thats life i,m afraid,... hence the fall out could be a lot more than the rover plant

M
Old 12 April 2005, 10:32 PM
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Just had 60 MG ZT 160/190 delivered to work over the past 2/3 weeks.
One of them has a problem with the central looking not working, so it cannot be used.
It only has 0.1 of a mile on the speedo,so I booked it in for warranty work at our local dealer in Swindon.
I then received a call on Monday (the day before it was due in) to be informed that they were unable to to do the work at present, unless I'd like to pay and they'd attempt to claim from MG Rover.
Old 13 April 2005, 08:18 AM
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Originally Posted by hades
Whilst your warranty might be very dodgy, if you end up getting e.g. a new MG-ZT for no more than a basic 1.6 Focus, looks to me like a perfectly good reason to buy a Rover. Realistically, residuals will be low and you may need to underwrite any repairs yourself, but that will be a risk you can assign a "likely" cost to. If you get a discount much bigger than that likely cost, you may as well buy. If you don't, don't buy.

Just my take on things.
I know of a Rover 75 that is a 02 plate..Its now on its 3rd engine,one due to headgasket problems that eventually lifted the cylinder liners,then on the replacement the end of the crank sheared,also taking the gearbox bell housing with it..Repaired under warranty at the time,but since has had dashboard faults,ABS problems,central locking problems and water ingress problems and is due an exhaust very soon.
This car is driven by an elderly gent who doesnt give this car a hard time,and has only managed 20k to date..

Wouldnt be nice if all the bills had to be shouldered by yourself,for all this cars faults..

Its a bloody shame Rover are going but they only have thereselves to blame..

Oh MG ZR...sufferin gearbox problems and heard that seat frames are falling to pieces after 10k..
Old 13 April 2005, 08:32 AM
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Originally Posted by Stevie.p
i would be interested to find out why the deal with the chinease company went tit's up in the fisrst place
IIRC i think they held back on the deal for as long as possible as they wanted it cheap but still as a viable business. Looks like they waited too long.
Old 13 April 2005, 09:04 AM
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Originally Posted by AndyC_772
Blimey

With regard to warranties, it's the dealers that should be really getting nervous. Consumers have the protection of the law requiring goods to be of merchantable quality, fit for their intended purpose, free of defects and so on. If something goes badly wrong, I believe the supplying dealer is liable and not the manufacturer - so they'd have to cough up.

A warranty may smooth out the whole process and may grant the purchaser additional rights over and above their statutory rights, but it's a popular misconception that once the warranty has expired, the dealer is absolved of any further responsibility. The buyer's contract is with the dealer and not the manufacturer.

I'm SO glad I don't have a Rover franchise right now!
Its not quite that straightforward Andy.

Depending on the manufuacturer, the dealer is either the retailer or just an agent for the manufacturer.

Where its simply an agency, its the manufacturer that carries the responsibility.

Where the dealer is the retailer, yes, the buyers contract is with the dealer, but warranty work (by the dealer) is only covered insofar as the buyer's statutory rights provide.

To say that the dealer remains responsible after the warranty has expired is somewhere between misleading and wrong .

If your fridge expires after 3 years, do you think Curries would be obliged to replace it? A car will be no different.

I don't know what the warranty is with a new Rover, but the problem is that owners can shout statutory rights until they are blue in the face.

Dealers may be unable to source parts, and certainly will not be in a financial position to give refunds or replacements when repairs cannot be made.

Your statutory rights will have no value when your dealer ceases trading.

The clever Rover dealers will have incorporated a new company on Monday and be looking for another manufacturer's franchise at the moment, with a view to walking away from their Rover liabilities.

Bottom line is, only a fool would buy a Rover now, no matter how cheap it was.
Old 13 April 2005, 10:15 AM
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Pete The Biker
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Quote from AOL News:-

MG Rover will not honour warranties


MG Rover will not honour its warranty obligations for new car owners because of "insufficient funds".

This means that about 150,000 Rover owners who have bought cars in the past two years will have to pay for any problems with their vehicles or look for another warranty provider.

Rob Hunt, of the MG Rover administrator team, said all dealers had been contacted to explain the situation.

Mr Hunt said: "A review of the company's warranty arrangements has been undertaken and has concluded that warranties continue in the first instance to be a matter between individual dealers and their customers.

"We're aware that historically MG Rover have reimbursed repairers and authorised dealers the cost of valid warranty claims. However, following our appointment as joint administrators on April 8, the company no longer has sufficient funds to reimburse warranties.

"Should customers wish to purchase warranty cover in the marketplace, a number of alternative providers are available. Most dealers will be able to advise customers on how they could obtain this cover."

Richard Cort, the chairman of the MG Rover dealer council which represents 264 dealerships, said he was disappointed at the news but added that on average every dealer was owed £100,000 in unpaid warranty payments and sales allowances.

MG Rover parts are supplied by American company Cat Logistics which has said that it has £40million worth of parts in stock so the supply of parts should be safe.
Old 13 April 2005, 11:52 AM
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Originally Posted by Pete The Biker
Quote from AOL News:-


Richard Cort, the chairman of the MG Rover dealer council which represents 264 dealerships, said he was disappointed at the news but added that on average every dealer was owed £100,000 in unpaid warranty payments and sales allowances.
That will be the dealer's fcuked* then (*technical term used to describe an irrecoverable financial position )

MG Rover parts are supplied by American company Cat Logistics which has said that it has £40million worth of parts in stock so the supply of parts should be safe.
Thats good news provided a) Cat Logistics actually own the parts (which is doubtful - in which case they will not be able to release them to the aforementioned dealers) and b) Cat aren't owed £'000's for distribution charges (which is probable) and hence will be claiming a lien over the stocks held.
Old 13 April 2005, 05:48 PM
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fatscobbyfella - as I said, it's a risk and you may need to underwrite any repairs yourself. I agree you wouldn't want to pay for all that yourself, BUT if you got an engine rebuilt once, you'd get a warranty on the rebuild from the engine builders. As with all risks, there's a chance you'd lose, and a chance you'd win. And IF you got an £8k saving from new, you might still win in the long run despite paying for a full engine rebuild
Old 13 April 2005, 06:34 PM
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I understand fully...Just cant see that many people wanting the risk to be honest..Cheap or not £10,000 or more is a lot of cash for any Rover inc the ZT,well it is to me and i would prefer to stick it in any other car than a Rover at the moment.
Because of this drastic fall in prices,how much is a 12 month old version worth now,or a 4 yr old version..£3000?more??The residual value must be chronic with no signs of it getting better..who would go into such a deal??

Just dont seem to make sense to me...

Just my 2p worth...
Old 14 April 2005, 02:44 PM
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Rover director selling cars at half-price from his forecourt:

http://www.guardian.co.uk/business/s...459641,00.html
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