Vehicle Warranties

There are several types of warranties. The warranties you have will depend on the circumstances surrounding the purchase of your vehicle. New vehicles usually come with a manufacturer's warranty. Used vehicles may also have a manufacturer's warranty. This depends on whether there is still time left on the warranty that came with the purchase. By law, certain used vehicles must come with a minimum power-train warranty.

The law also provides some statutory warranties for new and used vehicles purchased from a dealer. Private sales of used vehicles are not covered by these types of warranties. As well, at the time of the sale of any new or used vehicle, the seller may make statements about the vehicle that create an express warranty.

Licensed dealers must provide a power-train warranty on used vehicles for 30 days or 1,000 kilometres, whichever comes first. This only applies to vehicles that have less than 200,000 kilometers. This warranty does not apply if:

• you misused the vehicle during the warranty period
• the problem that caused the failure was disclosed to you in writing before you signed the contract for sale, and you acknowledged the disclosure in writing

Manufacturers often promise in writing that they will fix any defects or other problems with the vehicle. This is called a manufacturer’s warranty. However, they often do not cover as much as you might expect. Always read and understand the warranty. Know what is covered and for how long. Consumers can be surprised and disappointed when they find out that certain things are not covered under warranty.

For example, if a part is defective, replacing it is considered a direct cost. This will be covered under the manufacturer's warranty during the warranty period. However, if your car has to be towed a few hundred miles, it may be considered an indirect cost. Likewise, if you suffer a personal injury because of the defect, it may be considered an indirect result of the defective part. These expenses or losses are referred to as consequential damages. Under their warranties, manufacturers usually say that they are responsible only for the direct expenses. They often try to deny liability for consequential damages even though those losses also arose because of the defective part.

For an additional fee paid by the consumer, a dealer or manufacturer may offer extended benefits. These are in addition to their standard warranty. This can mean either that the warranty is good for a longer period of time, or that a wider range of defects will be covered. This is called an extended warranty. If you can afford the extra fee, extended warranties can be of benefit. However, as with the manufacturer's standard warranty, you need to read the documents carefully. It is important to know what you are actually getting.

Always take your new vehicle back to the dealer for any warranty work. If the dealer is not prepared to fix the defect under the warranty, contact the manufacturer's area representative, if possible. If you and the dealer still cannot agree on what is to be done, pay for an independent examination done by another mechanic. You can then present the dealer with a written statement of what needs to be done. Write down any other complaints that you may have, and always keep a copy of these records for yourself.

It is important that you follow the manufacturer's conditions, such as getting regular service checks. If the warranty says these things must be done at a factory-authorized dealer, get them done there. Having routine maintenance done elsewhere may invalidate some of your warranty rights.