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The sales yard I am buying from have said they give a 3 month free warranty. I questioned if I find any serious issues after purchase, am I able to bring back for repair, although a round about way, they said yes, but they would rather me purchase a seperate extended warranty for peace of mind, which is quite expensive. Do I have gaurantee that they have to fulfill their obligations, or is this a complicated area? Thanking you.

Your three month free warranty may simply be what the dealer believe there obligation is under the Consumer guarantees act,
I would have a look through the CGA on what your rights are.

As time goes by eg in your case after the three months dealer will be less likely to remedy your issues however there is no time frame in the CGA the coverage really depend on the age,mileage price and condition at the time of purchase and what a reasonable person would expect.