Category Archives: Warranties and Vehicle Service Contracts

Is Your Car a Lemon?


“Lemon law” seems to be a generic term for the body of law relating to mechanic problems and defects relating to vehicles.  However, in its strictest sense, the term “lemon law” only applies to brand new vehicles.  The North Carolina lemon law statute (N.C.G.S. § 20-351. et seq.) only covers new vehicles.  This means you …

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Know the Flow: Used Vehicle Issues


Almost daily I receive phone calls from potential clients who have purchased used vehicles…. without having them inspected by a mechanic AND…. without having done due diligence before deciding to make the purchase AND…. without having obtained a warranty from the dealer (and, no, a vehicle service contract or “extended warranty” may not count)…. Yikes!  Too …

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How to Determine if You Have a Valid Used Car Case


Weekly and virtually daily I receive phone calls and emails from consumers who have problems with vehicles they purchased.  Most of them purchase a used vehicle and do little, if any, inspection or investigation on the vehicle and instead place a significant amount of trust in what the dealer/seller says about the vehicle’s history and …

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Car Law A to Z: W is for Warranty


Used in its properly intended and strictest context, a warranty is the guarantee you receive from the manufacturer when you purchase a new vehicle. The warranty provides you with legal rights including the ability to obtain a refund or replacement vehicle if your vehicle turns out to be a lemon. However, the word “warranty” is generically …

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Car Law A to Z: V is for Vehicle Service Contract


Often called an “extended warranty”, a vehicle service contract provides some coverage for certain problems that may occur with your vehicle.   Unfortunately, I emphasize the word “some” since (1) most vehicle service contracts include deductibles meaning you still have to spend money toward the repairs and (2) many vehicle service contracts are so riddled with …

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Car Law A to Z: M is for Magnuson-Moss Warranty Act


If you buy a vehicle and the seller gives you a warranty, you have rights.  And you could have more rights than the seller even anticipates.  NOTE:  The warranty must be from the seller and NOT a third party–click here for an explanation of the significant difference. The Magnuson Moss Warranty Act is a federal law …

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Car Law A to Z: I is for Implied Warranty


An implied warranty is one that is not specifically stated. With respect to vehicles, there are two implied warranties: the implied warranty of merchantability (promise the vehicle will do what vehicles are supposed to do—operate safely on the roads and highways) and

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Car Law A to Z: F is For FTC Used Car Rule


Have you ever noticed a large white sticker with black lettering hanging in the window of a vehicle offered for sale?  Well you should.  This important document is called a Buyer’s Guide.  The FTC Used Car Rule (FTC stands for Federal Trade Commission) requires vehicle dealers

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Car Law A to Z: E for “Extended Warranty”


When you are in the process of purchasing a used vehicle you need to ensure your investment is protected.  Protection comes in the form of a warranty.  Two main points here.

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Car Law from A to Z: A is for “As-Is”


You have likely seen the window sticker (called a Buyer’s Guide) in a vehicle that allows the vehicle dealer to sell the vehicle with or without warranty.  Without warranty means

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