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.

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 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

Related Legal Updates

Always prep, check, then check again

If you state that every vehicle comes with a new MOT, then ensure that they do!

The finance industry focuses on durability, and misses the point!

There is plenty of sound legal authority that makes clear a buyer of a used vehicle must expect that faults will develop sooner or later.

Deposit and Fair Contractual Terms

Explore the intricacies of contract commitments and the bounds of consumer rights in our latest analysis, where a £3000 deposit dispute underscores the significance of clear terms and buyer responsibilities.

Lawgistics review WarrantyFirst Car Warranty Policies

We continue our journey reviewing aftermarket warranties and our next stop, WarrantyFirst.

2024: The Year of Smarter Warranties in the Motor Trade

Unlocking 2024’s Potential: Discover how our revolutionary warranty management system can transform your business profits and efficiency!

Assist your consumer… before it’s too late

If a consumer is ignored or refused assistance by you, and a repair is carried out, you will no longer be able to inspect the failed component.

Lawgsitics review Autoguard Warranties

How far above and beyond consumer rights do aftermarket warranties go?

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.