State laws hold dealers responsible if their product don't meet reasonable standards of quality. These obligations the dealers are held responsible for are called implied warranties. They are unspoken, unwritten promises that the seller gives to the buyer. However, the dealer 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 specific time period for implied warranties.
The most typical type of implied warranties is the warranty of merchantability . This is where the seller promises that the product offered for sale will do what it is supposed to do. For example, it is usually implied when a car is sold that the car will run. This promise applies to the basic functions of the car, not every little thing that goes wrong. Breakdowns and other problems after the sale don't prove the seller was a liar. A breach occurs only if the buyer can prove that a defect existed at the time of the sale. A problem that does occur after the sale may not result in the discovery of a defect that existed at the time of sale.
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 your particular use. For example, a dealer may suggest a specific vehicle for hauling a trailer in effect is promising that the vehicle will be safe for that purpose. Even if you have written warranties, it doesn't cover your problems; you may still have coverage through implied warranties .
In states that allow "as is" sales, the "Implied Warranties Only" disclosure should show on the Buyers Guide if the dealer chooses to sell a vehicle with implied warranties and no written warranty.
Dealers who offer written warranties must complete the contract section of the Buyers Guide. Because terms and conditions vary, it may be helpful to compare and negotiate coverage.
Dealers may offer a full or limited pledge on all or some of a vehicle's systems or components. Most used car warranties are limited and their coverage varies. Full warranties include the following terms and conditions:
- Anyone who owns the vehicle during the period is entitled to the services
- Service will be provided free of charge, including such costs as removing and reinstalling a covered system
- You have the option of a replacement or a full refund if, after a practical number of tries, the dealer cannot repair the vehicle or a system
- Implied warranties have no time limits
Full or limited warranties don't have to cover the entire vehicle. The dealer may specify that only certain systems are covered. Some parts or systems may be covered by full warranties; others by limited ones.
You have the right to see a copy of the warranty before you buy. Review it carefully to determine what is covered. It should give detailed information, such as how to get repairs for a covered system or part. It also tells who is legally responsible for fulfilling the terms. Take your time and read the small print, don't make the mistake of letting the dealer rush you into signing before you know what you're signing. You may regret it later.
By Jessica Maughan