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Is the Warranty "Full" or "Limited"?
For a warranty to be considered "full":
Warranty service must be provided to anyone who owns the vehicle during the warranty period.
Warranty service must be provided free of charge when necessary, even for services like removing and reinstalling a system covered by the warranty.
The consumer must be able to choose either a replacement or a refund if the vehicle can’t be repaired after a reasonable number of tries.
The consumer is not required to take any action to receive service, except to give notice that service is needed. Service must be rendered after notice unless the warrantor can demonstrate that it is reasonable to require consumers to do more than give notice.
The length of implied warranties must not be limited.
The warranty is considered "limited" if any of these conditions don’t apply.
What Percentage of Costs Does the Warranty Cover?
Fill in the percentage of parts and labor costs covered by the warranty in the spaces provided. If a deductible applies, put an asterisk next to the number and explain the deductible in the "systems covered/duration" section. For example, "*A $50 deductible applies to each repair visit." (See the sample.)
What systems are Covered? For How Long?
There’s one column to list the systems covered, and another to list the length of the warranty for each system. In the left hand column, you must specify each system that’s covered by the warranty. The Rule prohibits the use of shorthand phrases such as "drive train" or "power train" because it’s not always clear what specific components are included.
In the right hand column, you must state the length of the warranty for each system. If all systems are covered for the same length of time, you may state the duration once.
What if the Manufacturer's Warranty Still Applies?
If the manufacturer’s warranty hasn’t expired, disclose this fact by checking the "Warranty" box and including this disclosure in the "systems covered/duration" section: "MANUFACTURER’S WARRANTY STILL APPLIES. The manufacturer’s original warranty has not expired on the vehicle. Consult the manufacturer’s warranty booklet for details as to warranty coverage, service location, etc."
If the consumer must pay to get coverage under the manufacturer’s warranty, you may not check the "Warranty" box. Such coverage is considered a service contract. However, you may check the "warranty" box if you pay for coverage from the manufacturer and the consumer doesn’t have to pay anything more than the price of the vehicle to get the coverage. If you provide a warranty in addition to the unexpired manufacturer’s warranty, explain the terms of your warranty on the Buyers Guide. (Sample Warranty)
Where Should Negotiated Warranty Changes Be Included?
If you and the consumer negotiate changes in the warranty, the Buyers Guide must reflect the changes. For example, if you offer to cover 50 percent of the cost of parts and labor for certain repairs, but agree to cover 100 percent of the cost of parts and labor after negotiating with the customer, you must cross out the "50 percent" disclosure and write in "100 percent." Similarly, if you first offer the vehicle "as is" but then agree to provide a warranty, you must cross out the "As Is-No Warranty" disclosure and complete the "Warranty" section of the Buyers Guide properly.
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