Used car warranties too restrictive

• Many warranties specify garages for servicing
• Clauses cost motorists millions
• Call to remove restrictive warranty clauses

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Millions of motorists are missing out on savings because of restrictive clauses in used car warranties.

Independent warranty provider Warranty Direct says many policies given with the five million used cars sold each year insist that servicing has to be done at particular garages.

While the Office of Fair Trading has already clamped down on such clauses in new car warranties, saving motorists an estimated £170 million over two years, its action did not cover used cars.

Managing director of Warranty Direct Duncan McClure Fisher said: 'The original focus of the OFT, while with good intentions, was wrong. New cars only account for around a tenth of all the vehicles on the road.

'What about the five million or so used cars bought from dealers every year with an extended warranty attached?'

McClure Fisher called for restrictive clauses to be removed from used car warranties. The OFT is yet to comment.