FLEETS should benefit from lower running costs for BMW cars after the manufacturer decided to increase its warranty and cut prices of replacement parts.

Cars registered in the UK after November 1 will still be subject to a three-year warranty, but the 60,000-mile limit has been replaced with an unlimited mileage policy. The paint warranty has also been increased to two years with unlimited mileage, and now all parts will carry 24 months' unlimited cover.

The company has also cut prices of 22,000 parts in the UK, with an average reduction across the board of 9.9% - an expected benefit to customers of about £4 million a year.

Steve Nash, BMW GB aftersales director, said: 'This extension of warranty terms is a reflection of the confidence we have in the quality of our products. Now we can give our customers complete peace of mind over the first three years of ownership, however many miles they cover. Our action on parts prices is key to our on-going quest of reducing the cost of owning a BMW.'