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.
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