Why don't car dealers give a full year's warranty?

I looked at a Ford Kuga, 4x4, manual box, diesel engine, 2009 model and quite a nice car. The dealer, a main Ford agent, was asking £16,999 with only a three months warranty. The car had done 33,000 miles and came with a FSH. I thought it was law that dealers had to give a twelve-month warranty. The dealer told me the car was well below trade price. We did not go for the car because a three-month warranty does not show a lot of faith in the car. Are such short warranties common in the motor trade now? The dealer told us that they were being squeezed of profits all over the place and they had to cut the time of the warranties.

Asked on 9 February 2013 by LD, Surrey

Answered by Honest John
No, dealers can give whatever warranty they want, but they remain responsible for any fault that could have been present or developing on the date of sale for 6 months from the date of sale. The Appeal Court ruling in Clegg v Olle Andersson (trading as Nordic Marine) 2003 can even force them to give a complete refund.
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