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Warranty Denied?

Warranty Denied?

The enclosed materials are intended to help you should you have a vehicle warranty claim denied in circumstances in which an aftermarket product has been used. The information describes the law on vehicle warranties and will provide a sense of what is and is not an improper warranty denial. After reviewing this information, you will be aware of the steps to take to fight unlawful warranty denials.

In many cases it will not be necessary to take all the steps outlined here because disputes are often resolved at an early stage.

What Does the Warranty Actually Say?

Start by re-reading the warranty documents. Become familiar with what the documents actually say, not what you think they should say. If the language is confusing, get help in understanding what it really means. Look for specific items or circumstances that may or may not be covered. Determine if there is a process specified for resolving disputes.

The Law

Federal law sets forth requirements for warranties and contains a number of provisions to prevent vehicle manufacturers, dealers and others from unjustly denying warranty coverage. With regard to aftermarket parts, the spirit of the law is that warranty coverage cannot be denied simply because such parts are present on the vehicle, or have been used (see Attachment A). The warranty coverage can be denied only if the aftermarket part caused the malfunction or damage for which warranty coverage is sought. Disputes in this area usually boil down to arguments over facts and technical opinions, rather than arguments over interpretations of the law.

Check Vehicle History

Sometimes a malfunction in a new vehicle may be identified as a "pattern failure," a failure that is recognized as common to your make and model of vehicle. It may be a manufacturing defect which has become the subject of a government-mandated recall. You should check with another dealer, the vehicle manufacturer or an independent service provider

Get it in Writing

If a dealership denies warranty coverage, they should be willing to do so in writing. Have the dealer describe the failure which is causing your problem AND how the dealer believes the aftermarket product installed is responsible for the problem. Keep an accurate log of all contacts and correspondence in addressing the warranty denial.

Contact the Vehicle Manufacturer's Zone Representative

If a car manufacturer backs your warranty, and you have a dispute with the dealer about either service or coverage, contact the local manufacturer's representative. The local or zone representative has the authority to adjust and make decisions about warranty service remedies or repairs to satisfy customers.

Some manufacturers are also willing to repair certain problems in specific models free of charge, even if the manufacturer's warranty does not cover the problem. Ask the zone representative or the service manager if there is such a policy.

The procedure for contacting your zone representative is usually provided in the vehicle owner's manual. This information can also be obtained from a dealer, or by calling the manufacturer's customer service number, as listed in the carmaker's owner's manual. Present your case to the zone representative. Be sure to indicate how the dealer responded to your information, especially if dealership personnel were notably uncooperative, etc. Once again, be sure to get as much information in writing as you can; request that any determinations or actions which are promised by the zone representative be confirmed by a letter or a fax.

Contact the Vehicle Manufacturer Directly

You may find that contact with the zone representative does not achieve resolve of the matter. If you are still not satisfied, the next step is to contact the vehicle manufacturer directly. Most carmakers maintain a contact office or a special department that is responsible for dealing with warranty issues (see Attachment B).

Using the information you have gathered and any additional information you may have to supplement your case, forward a letter directly to the vehicle manufacturer's customer service office (sometimes called dispute resolution board or something similar). Be sure to explain your situation in detail and in a logical, easy-to-understand manner. Provide as much detail as you can about your contacts with the dealer and the zone representative. Do not hesitate to state if you felt you were treated improperly or unfairly by either. The vehicle manufacturer will almost always respond to you with a letter; sometimes promptly, sometimes not. Again, be sure to retain all correspondence in case you need it for future use. Generally, the vehicle manufacturer has the greatest interest in ensuring your satisfaction; they want you to remain loyal to their brand. As such, they will likely make a good-faith effort to resolve the issue particularly if there is a known pattern of similar failures. If there is a request for any additional information, be sure to keep a record of what you send. If the manufacturer should still decide against you, make sure that their refusal letter provides an explanation of how they believe the aftermarket part caused the problem.

Local Approaches You Can Try

If you cannot get satisfaction from the dealer, the zone representative or the manufacturer, contact one or all of the following:

Better Business Bureau
State Attorney General
Local Department of Motor Vehicles
State Consumer Protection Office
Many states also have county and city offices that intervene or mediate on behalf of individual consumers to resolve complaints.

You also might consider using a dispute resolution organization to arbitrate your disagreement if you and the dealer are willing. Under the terms of many warranties, this may be a required first step before you can sue the dealer or manufacturer. Check your warranty to see if this is the case.

If you bought the vehicle from a franchised dealer, you may be able to seek mediation through the Automotive Consumer Action Program (AUTOCAP). AUTOCAP is a dispute resolution program coordinated nationally by the National Automobile Dealers Association (NADA: 800/252-6232), and sponsored through state and local dealer associations in many cities. Check with the dealer association in your area to see if they operate a mediation program.

National Approaches You Can Try

Since the manufacturer's failure to honor the terms of the warranty may be a violation of federal law, you can pursue the issue with the appropriate federal agency.

You can call or write the Federal Trade Commission (FTC) and ask for assistance on non-emission-related problems. Input from consumers is very important to the work of the FTC. These contacts with consumers are often the first indication of a problem in the marketplace and may provide initial evidence to begin an investigation. Although the agency cannot act to resolve individual problems, it can act when it sees a pattern of possible law violations. FTC, Washington, D.C.: 202/326-3128.

The FTC also maintains regional offices to field consumer complaints. For the telephone number to one near you, see Attachment B.

In the case of a problem with an emission-related component, the Environmental Protection Agency (EPA) is the organization to contact. A pamphlet published by the EPA on emissions warranty matters called "What You Should Know About Your Auto Emissions Warranty," can help explain your options. In essence, the EPA requires that you exhaust all of your options with the vehicle manufacturer before you contact the Agency. In all cases, you must correspond with the EPA in writing. You must also provide copies of all correspondence with the dealer and manufacturer, as well as any independent evidence you may have that describes the cause of the problem. The better you are able to make your case that an aftermarket part was not the cause of the failure, the more likely you are to get EPA's help. The EPA is particularly interested in any evidence of a pattern failure being involved.

Warranty Complaint Field Operations and Support Division (EN-397F), U.S. Environmental Protection Agency, Washington, D.C. 20460. Telephone: 202/233-9040 or 202/233-9100.

You can also call the Bureau of Consumer Protections Office of Consumer & Business Education in Washington, D.C., at 202/326-3650.

Final Steps

The Magnuson-Moss Warranty Act may also be helpful. Under this federal law, you can sue on breach of express and implied warranties. The main point of interest here is that the Act says warranty coverage may not be conditioned upon the use of only the vehicle manufacturer's parts unless the parts are provided free of charge. In other words, use of a non-carmaker product should not void your warranty unless it caused the problem.

Obviously, litigation can involve considerable time and expense on your part. However, if the cost of the warranty claim is high enough, this may be an option to consider. Any such lawsuit or claim would have to be fought on the unique merits of the case and we recommend that you consider finding qualified legal counsel familiar with this area of law. In some cases, the filing of a lawsuit may encourage a settlement of the dispute. You should also be particularly aware of the fact that once you file a lawsuit or claim against the dealer or manufacturer, your vehicle and your documentation may become material evidence and may be subject to inspection and reviews in the lawsuit.

You can also consider going to small claims court, where you can resolve disputes involving small amounts of money for a low cost. The clerk of your local small claims court can tell you how to file a suit and what the dollar limit is in your state. Again, this action will sometimes lead the parties to settle the dispute.

No matter which steps you undertake, always approach the situation in a professional manner. Fits of anger, shouting, threats and the like seldom accomplish anything other than aggravating the situation. The best strategy is to stay calm and tactfully demonstrate your knowledge of your rights and potential courses of action.

In most cases, it will not be necessary to go through the entire process described here. What you will normally find is that you will be able to resolve your situation at a fairly early stage if you have the proper information in written form and you approach the issue in a calm, professional manner.

As one who owned a motor shop and sold aftermarket products, here are a couple of thoughts.

If an aftermarket part causes a problem or damage to another part of the vehicle, the aftermarket
manufacturer is responsible for the damage and repair.

They only way around this is to have the customer sign a disclaimer(which I did) that exempts
the manufacturer from any liability.

The auto manufacturer(the dealer is his representative) has the right to deny and void any warranty repair
caused by an aftermarket part. This is affirmed by the act.

I will make an example, that if you put a K&N air filter on you vehicle and the added dirt or oil causes a
part(or motor) failure, K&N is responsible, not the auto manufacturer.

Cliff s

Cliff s That is a perfect example. We see people all the time with a K&N drop in filter who have check engine lights on. Most don't read the info provided by the part manufacturer for proper use. We have seen alot of people cleaning these filters and oiling both sides of the filter or just using to much oil. These people can not understand why we will not warranty any services caused by this. Most of the times we will either cut them some slack on the bill or just goodwill it for them. We want to keep them happy and coming back. Telling them to fight it out with K&N would be a loosing battle for them. We explain to them that we will work with them and show them the problem, after that we will not be able to goodwill it the second time. Most people have the wrong idea about the dealerships. I being a toyota technician do not look for ways of things not to be covered by warranty. My wife who is a service writer does not practice these methods either. Numurous times we have warranty things that are out of warranty per millage, year, or even aftermarket part failer. Techs do not get payed as many hours on warranty work as we do customer pay, but if the customer does not want to pay then we don't get the job at all. There has been times when we found ways for the failed parts to be covered by warranty. Customers need to be paitent, and honest with the dealership they are working with. Trying to get one by on the dealership will only come back to bite them in the arse. Tim

This link at the top did not work for me. Is there a way to get it elsewhere?

kustom, what's your thoughts on aftermarket suspension issues ...i.e. spacer lifts? Am I going to have warranty issues or should I just remove them? .....thoughts?

I am curious about this also. Do suspension mods invariably void the warranty?

I talked to an Assistant Service Manager today about potentially putting a moderate (2") spacer lift on my '07 4x4 - specifically asked him about warranty - and he said there shouldn't be any warranty issues. He made the point that it's not like you're replacing parts or anything. I asked about the possibility of different operating angles causing unplanned wear on components, and he dismissed it as unlikely.

Note, I don't have this in writing...

Here's the updated link:

SEMA Action Network (SAN) WARRANTY_DENIED

Just an FYI, for new owners, check your local lemon laws. NY Lemon Law states if the vehicle has any modifications, you are not covered by the lemon law.

Had the daystar kit on my 04 limited warranty covered everything cv axels and all .


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