What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks

Will a warranty and service plan still be valid if the company goes bust?

I have seen a car for sale with an online retailer. It includes a number of extras in the price. Can you tell me who would honour the warranty and service plan if the online company went bust?

Asked on 18 January 2023 by Richard Barker

Answered by Lawrence Allan
This is a difficult question to answer as individual businesses have different ways of handling things. It appears that many service plans are already administered by a third party, who would likely take on the liability if the company went out of business.

Who honours the warranty is a more difficult situation to resolve. When a company enters administration there is usually a process to make a claim to the administrators over financial losses or broken contracts.
Dear Honest John,

Please help me choose my next car. I would like it to have:
    Select a few terms below
Similar questions
My son and I have just completed our necessary motorbike training and tests, allowing us to ride 125cc bikes. I'm thinking of getting a new Honda CB125F and was wondering if you think I would be able to...
We bought a new Hyundai ix35 in May 2014. We had it serviced in March this year as we thought it did not need servicing until 20,000 miles. It's only done 20,600 now so it was not serviced earlier. We...
We have a Honda Civic 1.8 and will be buying a diesel Honda CR-V 160PS soon. Both cars come with a 5 year annual service plan which seems to cover at least oil and filter changes but is at 12,500 miles...