Warranty terms are not just important but required by law

legal updates

In most cases, a consumer will have the protection of the Consumer Rights Act 2015 and any warranty given will only be in addition to those rights.

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We still see invoices with the words “3 months engine and gearbox warranty “ and complaint letters from customers saying the dealer told them there was  6 months warranty on their vehicle. These letters are usually accompanied by demands for payment for some sort of repair or upgrade.  Whether the dealer has any liability, will depend on many factors.

Firstly, there is no legal requirement to provide a warranty. In most cases, a consumer will have the protection of the Consumer Rights Act 2015 and any warranty given will only be in addition to those rights.

Most issues arise when the dealer has given a warranty either verbally or by writing something on an invoice, but has not provided any terms.   

The lack of terms not only means the dealer has breached the Consumer Contracts Regulations 2013 but also means the dealer has gifted the consumer a great opportunity to get money from said dealer to which the customer would not otherwise be entitled.

To clarify, dealers do not have to offer a warranty. But if they do, they must provide full terms, so everyone is clear as to what is and, often more importantly, what is not covered.  

We do know that some dealers are reluctant to use the mainstream warranty companies as:

a) they are expensive

b) these companies will often refuse to pay out on items which dealers feel should be covered and this leads to dealers having to pay from their own pocket to keep their customer happy. This is often the main reason dealers use their own warranties.

However, if warranties are created without written terms and conditions (as required by law), it will cause problems. Of course, as motor trade specialists, we at Lawgistics have a solution. Currently, we can produce tailored warranty booklets with all the necessary terms and conditions you will need and very shortly, you will be able to make and download your own warranties as part of our ever expanding inclusive membership package.

For anyone interested in saving money and keeping on the right side of the law when it comes to warranties, do call 01480 455500 or email [email protected] to find out more.

Octane FinanceFuel Your Finance

Octane Finance is the broker of choice for new and used car dealers nationwide. With our uncompromising service levels and our genuine and professional approach, you and your customers can trust us to deliver.

Nona BowkisHead of Legal Services / SolicitorRead More by this author

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