Some experts claim that the only true car warranty available to consumers is the warranty that comes with a car when it is sold new. A manufacturer’s warranty, or new car warranty, is a type of car manufacturer’s guarantee. It generally states that if problems occur within a certain period of time or number of miles after the purchaser buys it, the manufacturer will assume responsibility for the repairs.
The cost of the warranty is often included in the price of the new vehicle, but there may be a separate charge for it.
A new car warranty also gives the purchaser of a new car the confidence that the manufacturer stands behind their product and that it is designed to last. Vehicle warranty laws endorse this promise by the manufacturer and the dealer.
In Texas, a car dealer is required to post warranty information on the window of a car that is for sale. If the warranty is in written form, per Texas law, it should explain in detail what parts and services are covered and for what period of time. Even if a vehicle is sold “as is” in Texas, the buyer has certain legal rights. A Texas lawyer could provide additional information.
If the seller knew the vehicle was damaged at the time of sale but failed to disclose this to a buyer, the buyer may have a legal claim against the seller under the Texas vehicle warranty laws, specifically the Texas Deceptive Trade Practices Act (DTPA). This is the case even if the car was sold “as is.”
Of course, selling a vehicle “as is” usually means that the seller does not warrant the vehicle’s condition. Again, the buyer of a defective used car may send a certified letter to the seller listing the damage or defects and asking for a repair or refund. If there is no response in 60 days, they may file a DTPA lawsuit against the seller in a Texas justice court. A legal consultation in Texas would be helpful to understanding the DTPA.
What Kinds of Warranties Might Apply to My Car in Texas?
According to the experts, every kind of warranty other than a new car warranty is nothing more than a prepaid service plan or a prepaid maintenance plan. It is a mistake of terminology to refer to it as an “extended warranty.”
Be that as it may, a prepaid service plan is a form of insurance. A car owner pays a monthly fee in order to avoid having to pay a huge bill in the event that something big and expensive goes wrong with their car after the original new car warranty expires. If the vehicle requires a repair, the company that offers the prepaid service plan should cover the cost of fixing it.
A prepaid maintenance plan is a type of insurance that covers the routine maintenance that a car should have. The buyer of such a plan hopes that it provides the routine maintenance at a cost that is lower than what they would have to pay a dealer or mechanic to do regular oil changes and the like.
What Are Express Automobile Warranties in Texas?
An express automobile warranty is an affirmation of fact or promise by the seller of a product that it conforms to a certain standard of quality. Usually, in sales transactions for vehicles, a new vehicle comes with an express written warranty to the effect that the dealer or manufacturer will repair certain critical components if they should prove to be defective or break down within a certain period of time after the sale.
What Are Implied Automobile Warranties Under Texas Law?
Implied warranties are inserted into sales transactions for vehicles by the law and not by the seller or manufacturer of a vehicle. Texas law recognizes a number of implied warranties as follows:
- The Implied Warranty of Merchantability: This warranty guarantees that products are “merchantable.” The term “merchantable” basically means that the product sold should meet standards in an industry without objection and are fit for the ordinary purpose for which the product is intended to be used. In addition, a product sold should conform to any representations of fact about it made on a label or container.
- The Implied Warranty of Fitness for Purpose: This warranty is implied in a transaction in which a buyer tells a seller that they are purchasing a product to serve a special purpose. If the buyer relies on the seller’s skill and judgment in selecting the product, the buyer can assume that the seller represents the product as fit for that purpose.
- The Implied Warranty of Good and Workmanlike Manner: This warranty applies in transactions between a purchaser and a person or entity that provides work done by someone who has the knowledge, training, and/or experience needed to successfully practice a trade or occupation. It warrants that the person who does the work does it in a manner that is considered proficient by those capable of judging its quality.
These are the main implied warranties that would apply to transactions involving vehicles.
How Can I Enforce My Warranty Rights in Texas?
As noted above, even when a vehicle is sold “as is” in Texas, if the vehicle proves to be defective, the buyer may send a certified letter to the seller that specifies its defects or the damage it shows. The buyer may request that the seller fund repairs or take the vehicle back and refund the purchase price. If the seller does not respond satisfactorily within 60 days, the buyer may file a DTPA lawsuit against the seller in a justice court in Texas.
In all cases that involve the DTPA in Texas, a buyer is required to present the seller with written notice of their problem and a request for resolution at least 60 days before they initiate a lawsuit in court.
Basically, this entails writing a letter to the seller specifying the situation and how you were damaged. Often when sellers are informed of the fact that they may be liable for three times the economic damages, court costs, and attorney’s fees for their misrepresentations, they choose to resolve the issue. The writing should be sent by certified mail, return receipt requested as this gives the purchaser proof that the notice was received.
A Texas lawyer would be able to help a purchaser draft a persuasive letter that would motivate a seller to resolve the problem without litigation.
How Can a Texas Auto Warranty Lawyer Help?
An auto warranty lawyer can review a purchaser’s warranty and analyze the facts of their situation. They should be able to tell if a certain defect or problem with a vehicle is covered by the warranty and what remedy the warranty provides in light of all of the circumstances.
A consumer does not necessarily need a lawyer to sue under the DTPA. If their damages are less than $20,000.00, they may represent themselves in a Texas in justice court. However, if damages are more than $20,000, the lawsuit should be filed in a district or county court. In these courts, a buyer would probably want to have the assistance of a lawyer.
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What Are Some Common Auto Warranty Legal Violations in Texas?
The most common warranty violation is likely to be the refusal of a vehicle manufacturer or dealer or the company that provides a prepaid service plan to make repairs on a vehicle when called upon to do so by the purchaser. When a purchaser discovers a defect or the need or repair in a vehicle covered by a warranty or service plan and demands the benefit provided by their warranty or plan, the seller of the warranty or plan may refuse to provide the benefit.
What Should I Do if My Auto Warranty Is Not Honored in Texas?
The first step would be to write a letter to the seller of the warranty, which should provide the seller with the following information:
- Facts about the Original Transaction: the facts of the original transaction in which the vehicle was sold with a warranty or the prepaid service or maintenance plan was purchased
- Warranty or Plan Provisions: What the warranty or plan provides that gives rise to their obligation to repair, replace or pay damages
- What Is Promised in the Warranty or Plan: Why the seller or other warrantor is obligated to provide a repair or replacement or pay damages;
- Damages: If the buyer seeks the payment of damages, how much they seek and what justifies the amount
- Special Damages: Whether the buyer seeks special damages, e.g., damages for mental anguish, and attorney’s fees
- Demand for Action: A statement that the letter serves as the notice before filing a lawsuit and if the claim is not resolved within 60 days, the writer will file a lawsuit demanding 3 times their damages as allowed by law.
A seller or warrantor may reach out to negotiate a resolution and a buyer wants to negotiate in good faith because a settlement out of court is usually preferable to a lawsuit.
If the letter does not produce the desired result, a person may always file an auto warranty lawsuit. They could sue under the DTPA, and they could also allege breach of warranty, both express and implied. In addition, they could allege breach of contract as warranties and prepaid plans are contracts. If the seller or plan provider fails to perform as promised in a warranty or plan document, they have breached a contract.
Can an Auto Warranty Be Voided in Texas?
Federal law, specifically the Magnuson-Moss Warranty Act, also applies in Texas. It provides that auto warranties may be voided in certain circumstances as follows:
Some of the most common events that void a warranty are as follows:
- The Warranty Period Has Expired: New vehicle warranties are only valid for a specific period of time. When the period of time passes, the warranty expires, and the warrantor is no longer obligated to make repairs or address product defects.
- The Warranty Excludes the Defect or Part: A warranty may expressly exclude certain parts or problems, especially if it is a limited warranty. An express written warranty usually specifies the specific problems or qualities that it covers as well as the problems and qualities that it does not cover. In fact, full warranties that cover all repairs or replacements for defects are less common.
- There Was a Lack of Proper Product Maintenance: Some consumer products require the product owner to clean, store, or use them in specific ways. If they fail to care for the product as required, the warrantor may declare that the warranty is no longer effective. Of course, the warrantor should explain how to maintain the product correctly.
- The Purchaser Altered the Product Significantly: The buyer of a product should understand the repairs they make themselves or those made by a third party can void a warranty. Federal law does require a seller or warrantor to prove that an alteration caused a defect that makes a warranty void.
Do I Need a Lawyer for Help With an Auto Warranty Issue in Texas?
A lawyer can help you understand your new car warranty, extended warranty, or prepaid service plan. LegalMatch.com can put you in touch with a Texas auto lawyer who will be able to review your warranty or plan and the facts of your situation and tell you what you can expect from the seller or plan provider. They can guide you through the complexities of warranty law and get the best resolution possible in your situation.
