Tesco Personal Finance, one of the UK's leading providers of car insurance and breakdown assistance, is launching three new car warranty plans to help families keep costs down in the current uncertain economic times.

With the new Tesco Car Warranty plans, customers can now protect against the cost of their car repair bills from just £9.90 a month.

The Car Warranty plans can be taken out for almost any vehicle up to 10 years old--as long as it has fewer than 100,000 miles on the clock--and will protect motorists against the cost of most major mechanical and electrical faults, even if the car has been out of warranty for a few years.

Here are some examples of what you could typically pay for vehicle parts without a Tesco Car Warranty Plan*:

1. Turbo Charger - £602

2. Cylinder Head Gasket - £444

3. Air Flow Meter - £286

4. Water Pump - £195

5. Radiator - £208

6. Gearbox - £887

7. Alternator - £225

8. Clutch Assembly - £399

9. Electric Window Motor - £313

Customers choose the repairer they want to fix the vehicle and Tesco Warranty Administration will settle the bills directly with that repairer. The cost of labour is covered, as well as parts.

There are three plans to choose from: Value; Standard and Finest. Customers can pay in 10 monthly, interest-free instalments.

Tesco Car Warranty Plans also cover customers while they are on holiday in other EU member states, at no extra cost.

The plans will offer relief to the thousands of motorists who are putting off buying a new car, preferring to hang on to their vehicle for longer than originally planned because of the economic downturn.

A new study, carried out for Tesco Personal Finance by YouGov, found that more than half (54 per cent) of drivers questioned said they intended to keep their vehicles for longer than previously planned. In the study, involving almost 2,500 drivers, over a third (37 per cent) indicated they would drive the same car for at least two years longer than originally planned; 11 per cent for one to two years more; and six per cent for up to an additional year.

Only a third (33 per cent) said the economic climate would have no effect on the length of time they would keep their cars.

Allan Burns, head of insurance at Tesco Personal Finance, said: ""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 is likely to increase, the number of repairs needed is also set to rise. Many motorists worry about the cost of repairs but up until now it has been quite difficult to buy a warranty once the manufacturer's has lapsed.

"The grim reality is, however, that the older a car becomes and the higher its mileage, the greater the chances of it going wrong and the more expensive it could be to repair. In addition, cars are becoming increasingly sophisticated, with even the most basic being fitted with technology that a few years ago was only found on executive vehicles.

"We believe in offering motorists the choice of protecting themselves even after the manufacturer's warranty has expired, helping them to guard against large repair bills and bring down the cost of motoring. Our warranties come with the Tesco quality and value- for-money our customers trust, and we're sure there'll be a heavy demand for them." The cost of a Tesco Car Warranty Plan depends on the vehicle and plan selected. The table shows the annual cost of cover.

Cover level Value Standard Finest

Maximum vehicle age / mileage 10 years / 100,000 8 years / 80,000 6 years / 60,000

Up to 1400cc £99 £149 £199

1401 – 1800cc £149 £199 £259

Over 1801cc £199 £259 £339

Prestige £259 £339 £419

Tesco Car Warranty Plans are available online, via http://www.tesco.com/carwarranty and over the telephone, on 0800 997 8248. Customers can also call for assistance in selecting the right policy.

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 - 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.

• Source of car parts costs list: Car Care Plan (2007) – average costs across all makes and models.

• Total sample size of YouGov poll 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.

Authorised and regulated by the Financial Services Authority.