My extended warranty didn't cover a fault on my car - where do I stand?

I bought an ex-demonstrator Peugeot 308 GTI in 2016. Earlier this year it developed a fault where at seemingly random points during a journey, there would be a 'squealing' noise from the front. I took the car to a local garage to diagnose the fault, but their inspection didn't find anything.

I then found out from forums that other owners had issues that had been traced back to front brake callipers sticking and had the callipers replaced under warranty.

I bought an extended warranty at the time of purchase (an additional year on top of the manufacturer's three-year warranty), which was sold as Peugeot extended warranty ('Platinum Top Up') - but is underwritten by Car Care Plan Ltd.

I contacted Car Care Plan, whose advisor recognised the fault from other claims, but told me that I would need to take the car back to a dealer who should diagnose the fault and then contact Car Care Plan directly to claim for the costs of replacement callipers.

Having taken the car back to the dealer for inspection (and the dealer's job sheet now recommending replacement of callipers), I was told by the dealer that this work is not covered by extended warranty. I pressed the dealer to double check (seeing as other owners have apparently had successful claims) - but to no avail.

The dealer recommended me to contact Peugeot customer service in case it would be covered by manufacturer goodwill. However when I did this, Peugeot refused to even consider goodwill due to the car still being in the extended warranty period (until the end of October 2019), and on the grounds that Car Care Plan are rejecting the warranty claim due to it 'not being a safety issue.' Peugeot UK refused to contact Car Care Plan, saying that the dealer would have to do that. Obviously I am not confident of them changing their opinions if I go back to the dealer.

The extended warranty policy wording doesn't mention safety issues but does mention mechanical failure, which I believe other people's claims have been processed under. However, at this point, I do not know how to proceed, and was wondering if you have any advice? Peugeot Customer Service also advised that I could contact the motor ombudsman. Do I have any rights in this case?

Asked on 7 October 2019 by Peter Golding

Answered by Honest John
The dealer, the manufacturer and the warranty insurer will all try to avoid paying out on a warranty claim and will do so if the dealer cannot actually experience the problem you are complaining of. Warranties do not cover preventative maintenance. So I think your best tactic is to write a letter to the dealer principal of the supplying dealership complaining that you have alerted the dealership to a known fault that you are experiencing with the brakes and stating that, if the dealer does not attend to it, you, or your bereaved family in the worst case, will hold the dealer fully responsible.

Send this letter by post office special delivery, keep a copy, check that it was delivered, print out a copy of the delivered certificate and staple the certificates to the copy of your letter so it becomes a matter of record for the courts should this ever be required.
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