The myth of the 3 month engine and gearbox warranty

legal updates

The customer will have their statutory legal rights under the Consumer Rights Act regardless.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

We still see and hear evidence from across the industry that some dealers believe that they have to give a 3 month warranty when they sell a vehicle. To be clear, they don’t.

The 3 month warranty often manifests in the form of the words ‘3 month engine and gearbox warranty’ on a sales invoice. Not only is this unnecessary but a) it can cause problems in terms of customer expectations and b) it could attract the unwanted attention of Trading Standards for not meeting the criteria of the Consumer Contracts Regulations 2013.

Those Regulations require that the conditions of any after sales guarantee/warranty are made clear and so without any detail of how to claim or what exactly is or is not covered, using that expression could land you in hot water.

Your solutions are:

1.    To not offer any warranty at all – the customer will have their statutory legal rights under the Consumer Rights Act regardless;

2.    To offer an insurance based warranty with a booklet setting out all the terms and conditions and hope the provider pays out and doesn’t leave you to pick up the bill over a technicality or

3.    Run your own warranty by providing a tailored booklet setting out all the terms as you want them to be.

For those who prefer having control over their after sales process while also offering the customer a level of reassurance, Lawgsitics have a low cost solution which will keep you on the right side of the Regulations. Lawgistics runs two warranty systems, one which is easy for you to administer and another which is even more easy. If you would like to find out more, please contact Ella or Ian on 01480 455500 or email Ian at [email protected] or drop us a  message on our Facebook or Twitter.

InvolutionSTAFF UNIFORM | PROMOTIONAL WEAR | MERCHANDISE | BUSINESS GIFTS

Leading experts in print, promotional clothing, staff uniforms, branded merchandise and PPE. Involution is your brand partner for promotional marketing and workwear, a one-stop-shop for your branded marketing needs for any business size and industry.

Nona BowkisHead of Legal Services / SolicitorRead More by this author

Related Legal Updates

30 Days to Hand the Keys Back: How the Short-Term Right to Reject Really Works

Think a new fault lets buyers walk away, no questions asked? Not quite. Discover why the burden of proof is on the consumer, and how dealers can stay one step ahead.

Don’t Get Caught Out: Why Your Car Warranty Won’t Shield You from the Consumer Rights Act

Think a watertight warranty protects you from refund demands? Think again. We explain how the Consumer Rights Act trumps any small print and what dealers must do to stay safe, or risk costly claims.

When no title means no sale

Four years after selling a Range Rover, a trader was hit with a demand for a full refund when the vehicle was seized in Spain.

Don’t Get Caught Out: Your Essential Part Exchange Checklist

Part exchanges can quickly become costly if a trade-in isn’t as described. Learn what to ask and how to protect yourself with our practical checklist.

Coincidence or Cause? When Timing Leads to Claims

A motorcycle engine seized just 30 miles after a service, sparking a claim of negligence. Find out how this case unfolded in court and why coincidence doesn’t always mean liability.

Elusive Vehicle Noises: What to Do When You Can’t Find the Fault

More customers are reporting strange noises that seem impossible to trace. Learn practical steps to recreate, record, and address these elusive issues while protecting your business.

AI is the future – but treat it with care!

AI can be a powerful ally—but recent cases show its misuse can lead to serious consequences, even contempt of court.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.