THREE-year warranties will become the rule rather than the exception on new cars from all manufacturers, according to the report 'Winning Tomorrow's Customers - Future Directions for Car Retailing and Servicing in the UK'.

As pressure builds on the volume manufacturers to offer three-year cover instead of the traditional one year and Ford and Vauxhall dip their toes in the three-year warranty market with extended cover over 36,000 miles available on certain models as a retail initiative until May 31, report author Malcolm Harbour says it will become the market standard.

The report backs the widely held view that extended warranties will help dealers retain vehicle servicing requirements over the three-year period.