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Last Updated: Wednesday, 13 April, 2005, 12:45 GMT 13:45 UK
Q&A: What next for MG Rover owners?
Rover showroom
MG Rover car owners will have to pay for their own repairs
The administrators of MG Rover have cancelled the new car warranties held by 150,000 customers. BBC News asks what this means for owners of MG Rover cars?

What have the administrators announced?

The administrators have written to MG Rover dealers to tell them that they will no longer be able to meet the cost of repairs.

Historically, MG Rover has reimbursed the dealers for the cost of any repairs carried out for a period of anything up to three years after a new car was sold.

The administrators PricewaterhouseCoopers (PwC) have said MG Rover can no longer afford to honour this commitment.

In total, an estimated 150,000 MG Rover owners are believed to have lost their car warranty cover.

What does the announcement mean for me, I bought a new MG Rover in March?

PwC and the MG Rover dealerships seem confused over who will now pay for repairs.

The only thing for certain is that MG Rover will no longer meet any warranty commitments it has made.

However, dealers may still cover the cost of repairs to cars less than three years old.

It may all depend on the deal the dealership originally struck with MG Rover over who picks up the repair bill.

If the deal was that MG Rover would pay for repairs then you are probably not covered and may have to pay any repair bills from now on.

But, if the deal struck was that the dealer would cover repair costs, then you may still be covered.

To confuse matters further, some dealers have told BBC News their deal with MG Rover means the dealership will cover costs once two years have elapsed from the date the car was originally sold, but until that time it may be up to the owner to pay.

With such a confused picture emerging, the best advice is to contact the dealer you bought your car from to check if they will cover the cost of repairs.

If your dealer won't cover the cost of repairs you will have to meet the expense yourself.

Can I buy a new warranty?

There are several insurers that offer to cover the costs of repairs in return for an annual premium.

However, some of these insurance policies have been attacked by consumer groups as not offering a good deal.

In particular, they have been criticised as being overpriced and having far too many exemptions.

Often these policies exclude wear and tear costs such as tyre damage and brake pad wear.

But, as with all types of insurance there are good policies and bad policies - the key is to read the small print.

In future, will I be able to get spare parts for my MG Rover?

Cat Logistics, which supplies MG Rover parts, has said that the supply of spare parts is safe.

It added that it has 40m worth of MG Rover spare parts in stock.

There are approximately two million MG Rover cars on Britain's roads and there will be an ongoing market to supply spare parts for these vehicles.

In the long term, when some of these cars come to the end of their natural life and are broken up for scrap a steady stream of second hand parts will come onto the market.

Will MG Rover's collapse make it harder for me to sell my car on the second-hand market?

Short-term, confidence is shaken and it may be very hard to get a good price for your MG Rover.

Car dealers have said that MG Rovers are fetching far less money at car auctions than they were before the firm went into administration.

Rover cars leaving the Longbridge plant
There maybe a sale of unsold MG Rovers

But once buyers are reassured that the supply of spare parts is secure then prices of second-hand MG Rovers may recover.

You never know; if you hold onto your MG Rover for a very long time it may even become a collectors item.

I have heard that there are lots of unsold MG Rovers, is there any chance of picking up a new car on the cheap?

The administrator is assessing how many unsold cars there are and who owns these cars - whether they belong to MG Rover or to the dealerships.

There are no signs at present of a "fire sale" of MG Rover cars.

However, whoever owns the unsold cars will want to get as much money as possible for them, so there is a possibility of a sale.

This may not be good news for anyone who already owns an MG Rover, as a glut of cheap new cars may force down second hand prices.


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