Warranties

	Full Warranties
	Implied Warranties
	Warranty of Merchantability
	Warranty of Fitness for a Particular Purpose
	More to Know About Warranties
	Review a Copy of the Dealer's Warranty Before You Buy
	What to Do if You Have a Problem with Your Warranty Coverage

Dealers may offer a full or limited warranty on all or some of a vehicle's systems or components. If you are buying a used car, be aware that most used car warranties are limited and their coverage varies.


Full Warranties

A full warranty includes the following terms and conditions:

• Anyone who owns the vehicle during the warranty period is entitled to warranty service.
  
  
• Warranty service will be provided free of charge, including such costs as removing and reinstalling a covered system.

• You have the choice of a replacement or a full refund if, after a reasonable number of tries, the dealer cannot repair the vehicle or a covered system.
  
  
• You only have to tell the dealer that warranty service is needed in order to get it, unless the dealer can prove that it is reasonable to require you to do more.

If any of these statements do not apply, the warranty is limited.

Implied Warranties

State laws hold dealers responsible if cars they sell do not meet reasonable quality standards. These obligations are called implied warranties-unspoken, unwritten promises from the seller to the buyer. However, dealers in most states can use the words "as is" or "with all faults" in a written notice to buyers to eliminate implied warranties. There is no specified time period for implied warranties.

Warranty of Merchantability

The most common type of implied warranty is the warranty of merchantability. The seller promises that the product offered for sale will do what it is supposed to do. That a car will run is an example of a warranty of merchantability. This promise applies to the basic functions of a car. It does not cover everything that could go wrong.

Breakdowns and other problems after the sale may be a result of a defect that existed at the time of sale or it may not. A breach of merchantability occurs only if the buyer can prove that a defect existed at the time of sale.

Warranty of Fitness for a Particular Purpose

A warranty of fitness for a particular purpose applies when you buy a vehicle based on the dealer's advice that it is suitable for a particular use. For example, a dealer who suggests that you buy a specific vehicle for hauling a trailer in effect is promising that the vehicle will be suitable for that purpose.

More to Know About Warranties

• A full or limited warranty does not have to cover the entire vehicle. The dealer may specify that only certain systems are covered. Some parts or systems may be covered by a full warranty, others by a limited warranty.
  
  
• If the manufacturer's warranty is still in effect on a used car, the dealer may include it in the "systems covered/duration" section of the Buyers Guide (see Used Car Buying). To make sure you can take advantage of the coverage, ask the dealer for the car's warranty documents. Verify the information (what is covered, expiration date/miles, necessary paperwork) by calling the manufacturer's zone office. Make sure you have the Vehicle Identification Number (VIN) when you call.
  
  
• If you have a written warranty that does not cover your problems, you still may have coverage through implied warranties. That is when a dealer sells a vehicle with a written warranty or service contract, implied warranties are included automatically. The dealer cannot delete this protection. Any limit on an implied warranty's time must be included on the written warranty.
  
  
• In states that do not allow "as is" sales, an "Implied Warranties Only" disclosure is printed on the Buyers Guide in place of the "As Is" disclosure. The box beside this disclosure will be checked if the dealer decides to sell the car with no written warranty.
  
  
• In states that do allow "as is" sales, the "Implied Warranties Only" disclosure should appear on the Buyers Guide if the dealer decides to sell a vehicle with implied warranties and no written warranty.
  
  
• In the case of the sale of a used car, dealers who offer a written warranty must complete the warranty section of the Buyers Guide. Because terms and conditions vary, it may be useful to compare and negotiate coverage.
  
  
• If a third party service is responsible for fulfilling the terms of the warranty, investigate their reputation and whether they are insured. Find out the name of the insurer, and call to verify the information. Then check out the third-party company with your local Better Business Bureau.
  
  
• Make sure you receive a copy of the dealer's warranty document if you buy a car that is offered with a warranty.



• For more information on the Buyers Guide, see Used Car Buying.

Review a Copy of the Dealer's Warranty Before You Buy

Review it carefully to determine what is covered. The dealer must check the appropriate box on the Buyers Guide (for used cars) to indicate whether the warranty is full or limited and the dealer must include the following information in the "Warranty" section:

• The percentage of the repair cost that the dealer will pay. For example, "the dealer will pay 100 percent of the labor and 100 percent 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 lists the major systems where problems may occur;
  
  
• The warranty term for each covered system. For example, "30 days or 1,000 miles, whichever comes first"; and
  
  
• Whether there's a deductible and, if so, how much.
  
  
• Who is legally responsible for fulfilling the terms of the warranty. If it is a third party, investigate their reputation and whether they are insured. Call the insurer and verify the information. Also, call your local better business bureau.

What to Do if You Have a Problem with Your Warranty Coverage

If you have a problem that you think is covered by a warranty, try to work it out with the dealer. Talk with the salesperson or, if necessary, the owner of the dealership. Many problems can be resolved at this level. However, if you believe you are entitled to service, but the dealer disagrees, you can take other steps (see Service Contracts). To learn more, contact: