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Buachaill, Barrister
Category: Law
Satisfied Customers: 11716
Experience:  Barrister 17 years experience
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We bought a brand new Lunar touring caravan just over 2

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Hi thereWe bought a brand new Lunar touring caravan just over 2 years ago and it came with a 3 year warranty and 6 year water ingress warranty.We have just had it serviced and discovered by chance just before we took it to the dealer (who we bought the caravan from) that Lunar went bust in July. Although a South African company has bought it out, they have let all the staff go at the manufacturing site and had said they are not sure if they will honour the warranties.The dealer nor Lunar wrote to us to tell us this and the dealer confirmed (only what i mentioned it!) when we were there last week that our warranty was infact null and void.Thankfully at the moment, we have no warranty issues but some may arrise before the two warranties were set to run out.So, my question is:I thought my contract for the purchase, under the sale of goods act, was with the dealer, who would still be responsibible for honouring the warranty. Is this correct?And can they just not tell us about Lunar's demise - isn't there a process they legally have to follow for customers who have this product with a current warranty on it? Is this a case on unfair process?Just trying to forearm myself in case i need to know at a later date.Thanks very much.Kind regardsDenise

Hello, and thank you for your question. I am your Expert and I will provide the answer you require.

1. Dear Denise, the first thing you need to realise is that a dealer cannot be made liable for any of the manufacturer's warranties, such as the three year and six year warranties given by Lunar, the caravan manufacturer here. Under the Sale of Goods Act, the dealer is only liable for the warranties contained in the Sale of Goods Act, such as conformity with description and that the caravan be fit for purpose. These super-added six and three year warranties given by Lunar are not part of the sale agreement with the dealer as they are warranties which come separately from the manufacturer. So, I regret to say that if these manufacturer warranties have lapsed, because Lunar have gone bust, then there is no way to re-activate them or to seek to have the dealer honour them. All customers of Lunar have lost out in this regard when it went bust. Such as three year or six year warranty is only as good as the manufacturer. So, if the manufacturer goes bust, then these warranties are of no value unless Lunar had some other party act as guarantor of the warranty.

2. Similarly, this is not a case of unfair process as there is no process to follow when a company goes bust. Essentially companies go out of business every day. So, no customers of them have any additional comeback if a manufacturer is no longer in business. There is no obligatory process whereby a manufacturer must inform customers who bought from them in previous years, when they go bust. Essentially, once an entity has gone bust, there is no method of imposing an obligation on them, such as a warranty, as they no longer exist!

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Buachaill and 3 other Law Specialists are ready to help you
Customer: replied 4 months ago.
Hi there

Thanks very much for yet another brilliant reply. I understand the situation now and it explains how the dealer was reacting to us.

At least now we won’t make a fool of ourselves over it and don’t have to take it to the main dealer anymore just to satisfy the warranty.

Every cloud...

Will rate and review as always.

Many thanks.

Kind regards