Dealer Warranties

Dealer Warranties


When dealers offer a written warranty on a used vehicle,
they must fill in the warranty portion of the Buyers Guide.
Because the terms and conditions of written warranties can vary
widely, you may find it useful to compare warranty terms on
cars or negotiate warranty coverage.

Dealers may offer a full or limited warranty on all or
some of the systems or components of the vehicle. A "full"
warranty provides the following terms and conditions:

* Warranty service will be provided to anyone who owns the
vehicle during the warranty period when a problem is
reported.

* Warranty service will be provided free of charge,
including such costs as returning the vehicle or removing
and reinstalling a system covered by the warranty, when
necessary.

* At your choice, the dealer will provide either a
replacement or a full refund if the dealer is unable,
after a reasonable number of tries, to repair the vehicle
or a system covered by the warranty.

* Warranty service is provided without requiring you to
perform any reasonable duty as a precondition for
receiving service, except notifying the dealer that
service is needed.

* No limit is placed on the duration of implied warranties.

If any one of the above statements is not true, then the
warranty is "limited." A "full" or "limited" warranty need not
cover the entire vehicle. The dealer may specify only certain
systems for coverage under a warranty. Most used car warranties
are "limited," which usually means you will have to pay some of
the repair costs. By giving a "limited" warranty, the dealer is
telling you that there are some costs or responsibilities that
the dealer will not assume for systems covered by the warranty.

If the dealer offers a full or limited warranty, the
dealer must provide the following information in the "Warranty"
section of the Buyers Guide:

* The percentage of the repair cost that the dealer
will pay. For example, "the dealer will pay 100% of
the labor and 100% of the parts....";

* The specific parts and systems, such as the frame, body,
or brake system that are covered by the warranty. The back
of the Buyers Guide contains a list of descriptive names
for the major systems of an automobile where problems may
occur;

* The duration of the warranty for each covered system. For
example, "30 days or 1,000 miles, whichever occurs first";
and

* Whether a deductible applies.

Under another federal law, the Magnuson-Moss Warranty Act,
you have a right to see a copy of the dealer's warranty before
a purchase. Examine the warranty carefully before you buy to
see what is covered and what is not. It contains more detailed
information than the Buyers Guide, such as a step-by-step
explanation of hoax to obtain repairs if a covered system or
component malfunctions. Also check who is legally responsible
for fulfilling the terms of the warranty. If a third party is
responsible, the best way to avoid potential problems is to
make sure that the third party is reputable and insured. You
can do this by asking the company for the name of their insurer
and then checking its performance record with your local Better
Business Bureau.