Purchasing or leasing a vehicle can be confusing and overwhelming for anyone, especially when the dealer starts talking about warranties and other things that are not always common knowledge. When buying a car, the purchaser can choose to purchase a service contract, where the dealer will cover the cost of repairs over a certain time period or mileage. However, service contracts are not the only contracts that cover a vehicle. All new cars come with what is called the manufacturer’s warranty. 

What is the Manufacturer’s Warranty and Service Contract?

Typically the manufacturer’s warranty covers the car for three years or 36,000 miles and then the warranty will expire. A dealer can try to sell a purchase not only as a separate service contract, but also as an extended warranty that pushes back the expiration date of the original warranty. Usually, a purchaser of a new car that is already covered under warranty does not also purchase a service contract with the dealership. A used car purchaser, however, will be more likely to purchase a service contract because the warranty may have expired. 

The benefit to a service contract, as opposed to a warranty is that they often last much longer than a warranty. The typical contract covers three to seven years from the date of purchasing the vehicle. One major difference between service contracts and warranties are that service contracts are provided by the dealership, not the auto manufacturer. 

A warranty is a legal contract between the purchaser and the manufacturer or dealer of the vehicle. A typical warranty covers some or all repairs for the time of the warranty. Because a warranty is an express or implied contract, the dealer or manufacturer can breach the contract if it fails to provide the service that was promised under the warranty. 

What is Breach of Warranty?

A breach of warranty can usually take place in two different ways. First, a breach can occur when the manufacturer or dealer misrepresents something about the vehicle to the buyer. This is a breach of the warranty because in many times, the purchaser relies on the information that is told to them by the seller in order to make an informed decision. The second type of breach is when the dealer or manufacturer does not comply with their duties under the warranty. 

If the purchaser of a vehicle realizes that his or her car is defective, the manufacturer must fix the defects, if the car is still under warranty or extended warranty. Typically, the relief for a breach of warranty is a refund or partial refund of the vehicle. It is important that not every defect or issue with a car will qualify as a breach in the warranty. Depending on the terms of the warranty and the problem with the car, you may have a breach of warranty claim. If you believe that your car is a lemon and that your dealer or manufacturer has breached the warranty, contact our office to speak with an attorney about what your options are.