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MG Rover dealers close

19 April 2005

Three MG Rover dealers are to close with immediate effect leaving owners with no back-up for their cars.

Forecourt pic medium

Three MG Rover dealers are to close with immediate effect leaving owners with no back-up for their cars.

These are the first closures since MG Rover went into administration. The dealers are part of the 11-strong Phoenix Venture Motors Limited, which itself went into administration last night.

The three dealerships are in Northampton, Oxford and Muswell Hill in London. Administrators PricewaterhouseCoopers said it is doing everything it can to keep the other outlets open.

With millions of pounds owed to them by MG Rover, new financial liabilities for repairs on cars and depreciating stock, it is possible that other dealers may also go into administration or go bust.

Owners who bought cars through dealerships that close will lose all remaining protection against faults provided by the Sale of Goods Act. The act allows owners to argue that their cars are not of ‘satisfactory quality’ or ‘fit for purpose’ if faults develop, and that they should be repaired by dealers as a result.

All owners lost the warranty protection MG Rover used to provide after PricewaterhouseCoopers said it could no longer afford to honour policies.

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