Car owners in the South East plan to avoid hitting the skids during the current downturn by holding on to their vehicles for longer than they first planned, according to a new national survey.

Tesco Personal Finance commissioned polling organisation YouGov to interview a representative sample of almost 2,500 drivers across Britain, to mark the launch of Tesco Car Warranty Plans.

The plans help motorists keep costs down by paying for most major mechanical and electrical repairs, which tend to increase the older cars become.

Over half (58 per cent) of the drivers questioned in the South East said they now intended to keep their vehicles for longer than first planned. Forty-one per cent indicated they would hang on for more than two years longer; 10 per cent for one to two years more; and seven per cent for up to an additional year.

Only a third (33 per cent) in the region said the economic climate would have no effect on the length of time they would keep their cars and a mere three per cent that they planned to dispense with their current vehicles earlier than originally intended.

Allan Burns, head of insurance at Tesco Personal Finance, said: "Our survey clearly indicates most motorists in the South East plan to make holding on to their vehicles part of their overall belt-tightening during the economic slowdown.

"Figures from the Society of Motor Manufacturers and Traders suggest the average age of the 24 million licensed cars on UK roads is already 6.8 years and if, as our survey suggests, that's likely to increase, the number of repairs needed is also set to rise.

"We can therefore foresee great demand for our car warranty plans, which cover part and labour costs, and take effect after a motor manufacturer or dealer's warranty, usually covering the first three years of a car's life, has ended."

Three Tesco Car Warranty Plans are available, offering different levels of protection - Value, Standard and Finest. These cost from just £99 a year, and customers can pay in 10 monthly, interest fee instalments or a lump sum.

The plans can be taken out for almost any car up to 10 years old with less than 100,000 miles on the clock, even if it has been out of warranty for years, as long as it has been serviced in accordance with manufacturer's guidelines.

Protection starts from day one and, after that, there are no limits on the mileage a car can do or number of claims a driver can make. Customers can choose where to have cars repaired, including main dealers, and Tesco then settles the bills directly for them.

The plans provide peace of mind during the current holiday season too, as they apply throughout the EU at no extra cost. A Tesco Car Warranty Plan's cost depends on the one selected and the vehicle. The table shows the annual cost of cover.

Cover level Value Standard Finest Prestige Maximum vehicle age / mileage

Up to 1400cc £99 £149 £199 £259 10 years / 100,000

1401 - 1800cc £149 £199 £259 £339 8 years / 80,000

Over 1801cc £199 £259 £339 £419 6 years / 60,000

Tesco Car Warranty Plans are available online, via http://www.tesco.com/carwarranty and over the telephone, on 0800 997 8248, which customers can also call for assistance in selecting the right policy. They are administered by Car Care Plan, the UK-based market leader in warranty programmes.

For further information, please contact:

Vanessa Matthews

Tesco Personal Finance

0131 523 5533

Ra Fletcher

Haggie Hepburn

020 7334 7777

Notes To Editors

• Warranty cover from just £99 a year.

• Great choice of car warranty levels - choose from: Value, Standard and Finest cover.

• You choose the repairer you want to fix your vehicle, including franchised dealers. All we ask is that the garage is VAT registered.

• The cost of labour is covered, as well as the parts.

• Tesco Car Warranty Plans are administered by Car Care Plan, the UK market leader in warranty programmes.

• All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,453 adults. Fieldwork was undertaken between 7 and 9 July 2008. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+)

Tesco Personal Finance

Tesco Personal Finance Limited is a joint venture between The Royal Bank of Scotland plc and Tesco PLC. Tesco Personal Finance Limited. Registered in Scotland No. 173199. Registered Office: 24 St Andrew Square, Edinburgh, EH2 1AF.

Tesco Compare

Tesco Personal Finance Compare Limited is a part of the Tesco Personal Finance Group, a joint venture between The Royal Bank of Scotland plc and Tesco PLC. Tesco Personal Finance Compare Limited. Registered in Scotland No.SC318925. Registered Office: 24 St Andrew Square, Edinburgh EH2 1AF.

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