Firstly, the 3 month autogroup 'warranty' is utterly worthless, and is the garage's way of trying to get away from their legal responsibilities.
From the CRA (Consumer Rights Act) any fault that occurs within the first 6 months of ownership is assumed to have been 'present or developing' at the time of sale, unless the VENDOR can prove otherwise. So if you had (for example) a blown gearbox within 6 months, it would be up to the vendor to replace, entirely at their cost. Unless, of course, they could show that you'd been ragging the gearbox to hell, and were responsible for the failure.
As to the warranty for the first 3 months being 'free', it's not free. They've got your details. Prepare to be cold-called, hard-selled, your details sold on to other companies and all the other nonsense that goes on.
Having said all of that, the price is also a part of what you can expect : we had someone on here the other day who'd bought a 1999 Grand Cherokee (a private sale, in that case, where CRA doesn't apply), and 2 months later was complaining about all the faults and problems that it had. A quick autotrader search showed similar cars for sale at £1000 or less, and even when they were new they were horribly unreliable. At 17 years old they're pretty much fit for the scrappers.
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