AUTO WARRANTY LAWS

     Several types of Warranties protect the purchaser or lessor of a new vehicle. They are: 

 

   I.  Implied Warranties:  An Implied Warranty accompanies the sale of a new or used vehicle without any specific written or oral statement, guarantee or promise by the seller. An Implied Warranty is automatic, "implicit" in the sale or lease of the vehicle. There are three types of Implied Warranties:

 

    (1)  An Implied Warranty of Merchantability applies when the seller of a product is a merchant, a professional seller of goods of that kind, a dealer of new or used cars. The Implied Warranty of Merchantability guarantees that the product will be "merchantable" - that is, reasonably suitable for use according to its ordinary purpose. Every vehicle sold or leased by a dealer carries an Implied Warranty of Merchantability.

    (2) An Implied Warranty of Fitness for a Particular Purpose applies when the seller is aware that the buyer wants the vehicle for a particular purpose; and, is relying on the seller's expertise in selecting the good to suit the buyer's needs. This warranty arises more commonly in the sale of commercial vehicles than consumer vehicles; and, 

    (3) An Implied Warranty of Title arises in the sale of every vehicle and guarantees that the seller is conveying good and valid title. 

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Why Implied Warranties Matter !

 

    Federal law sharply limits the ability of dealers to disclaim implied warranties in consumer transactions. It also gives consumers the right to sue for damages, including attorneys' fees, when a seller fails to comply with an Implied Warranty. 

 

   II. Express Warranties:  Express Warranties are present in all new auto transactions and cannot be disclaimed. They can be created by written guarantee or orally, and by advertizing, pictures, and labels. There are three types of Express Warranties"

 

    (1) by affirmation or promise, which includes the things a seller says about the vehicle; 

    (2) by description of the vehicle, which becomes a basis of the bargain - for example: 2018, Rolls-Royce Ghost, 4dr Sedan, Gold, RWD, 563 hp,

8-sp automatic; and.

    (3) by sample or model shown to the consumer or displayed at the showroom or lot. Written warranties also contain additional remedies, including attorney's fees. 

 

    Vehicles may also be sold with "Extended Warranties" or "Service Contracts". If you have a question about warranty coverage of your vehicle, please call us at (877) 320-2380 for a FREE consultation or submit your contact information in the blue box and we will respond promptly.