Are Dealership Warranties Worth It?

It does not matter whether or not you buy a brand-new or a used vehicle. Most importantly, you need the dealership warranty, which will guarantee your rights when the purchased product qualifies as “lemon”.


What kind of Dealership Warranties exist?

Under the California law, there is no such requirement for licensed dealerships to offer warranties with used vehicles. The only exception is when you encounter “buy-here-pay-here” dealership. The other scenario for an exception may happen when you purchase a vehicle, which the dealer labels “certified” pre-owned.


Do I qualify for a “Buy-Here-Pay-Here Dealership” Warranty?

You need to know that the dealer qualifies as a buy-here-pay-here dealership if you pay directly to the dealership itself. In such cases, the California law obliges the dealership to offer warranties when it sells or leases a vehicle.


How do I define a “Buy-Here-Pay-Here Dealer”?

More specifically, the “buy-here-pay-here dealer” is defined as any car dealer that engages in selling or leasing vehicles in compliance with installment contracts. These contracts enable you to make the payments on a monthly basis. The same definition also stipulates that “buy-here-pay-here dealer” is one assigning less than 90 percent of its purchase contracts to various unrelated lenders.


How Long do My Warranties Last?

As far as the dealership warranty is concerned, the buy-here-pay-here dealership warranties must be in force for at least 30 days. In case measurement appears in miles, the dealership warranty will stipulate 1000 miles. Within the warranty timeline, the dealer is required to pay the entire amount of (i.e. 100 percent) of the cost of repairing any of the vehicle parts. These may range from the engine, front and rear suspensions, the transmission to the steering or the braking system. The buyer shall pay for any other part deemed as necessary to repair.


What do I Win with this Warranty?

Under the California legislature and the statutory requirements, this kind of dealership warranty is mandatory. This means that the purchasers of these types of vehicles qualify for the legal protection if the vehicle bought turns out to be a lemon product.


What about “Certified Pre-Owned Cars” Warranty?

California law also applies to dealers who claim to sell “certified” pre-owned or used cars. In particular, the law imposes several prohibitions, and one of them is the sale of certified pre-owned cars on the “as-is” basis. In other words, the dealers should offer minimum an implied warranty of merchantability lasting for at least 30 days during the sales process.


Need to consult an Attorney about the Dealership Warranties?

If your purchase has left you with dealership warranty issues, you need to consult an experienced lemon law attorney. Think no more and contact the lawyers at the Margarian Law Firm. They are ready to examine your claim and offer expert free consultations on consumer rights and statutory protection under the California lemon law.

If the attorneys at the Margarian Law Firm conclude you have a valid claim, they will take your case to the court of law and pursue your claim to the best outcome possible.

Call Now ButtonCall Us Now Skip to content