Good Interpretation of the UCC

This article came to me as part of this dealership's monthly Email newsletter. It is reprinted by permission

F&I - "Express or Implied" Warranties - What you should know to protect yourself

by: Robert Linkonis, Finance Manager
Pearson Infiniti, Richmond VA

Purchasing a Pre-owned vehicle could be a risky decision if you are not aware of the processes the selling dealer applies to make sure the vehicle is as mechanically sound as possible. How important is the vehicles remaining warranty in your buying decision? Would you buy a vehicle that was labeled "As Is"?

Sometimes customers choose to purchase a pre-owned vehicle somewhere other than at Pearson Infiniti, it happens occasionally, but it will help to take time to know the law on Express or implied warranties in order to protect yourself.

The following excerpts are from the FTC Uniform Commercial Code. They have direct relevance to automobile dealerships and Pearson Infiniti has reviewed these sections carefully.

U.C.C. 2-313

(1) Express warranties by the seller are created as follows:

(a) Any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.

U.C.C. 2-316

(3)(a) Unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like "as is,""with all faults," or other language which in common understanding calls the buyers attention to the exclusion of warranties and makes plain there is no implied warranty.

The FTC has required all dealers who sell pre-owned vehicles to comply with the Used Car Rule. This rule requires auto dealers to post a Buyers Guide in the vehicle before it is offered for sale. A vehicle is offered for sale when it is displayed for sale, or when the dealership lets a customer inspect it for the purpose of buying it, even if the car is not fully prepped for delivery.

The Buyers Guide is a disclosure document that gives customers important purchasing and warranty information, the Buyers Guide tells consumers:
- whether the vehicle is being sold "as is" or with a warranty;
- what percentage of the repair costs a dealer will pay under warranty;
- that oral promises are difficult to enforce;
- to get all promises in writing;
- to keep the Buyers Guide for reference after the sale;
- the major mechanical and electrical systems on the car, as well as some of the major problems that consumers should look out for;
- to ask to have the car inspected by an independant mechanic before they buy.

Good Advice:

- Have the selling dealer put anything promised in writing on signed letterhead.

- Know exactly what the warranty covers on the pre-owned vehicle you are considering purchasing.

- Feel free to call with any questions, whether you buy your vehicle from us or not. Pearson Infiniti will always be here to serve you and our community.

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