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All Warranties Lemon Law EV Repair Orders The Law Offices of William R. McGee Service Warranty Repairs

Extended Warranties – Are They Worth It?

All car dealerships, at time of sale, will offer what *they call* and “extended warranty” for purchase. In California, these are actually *Service Contracts* (Mechanical Breakdown Insurance). These take the factory warrany coverage and extend it out more years, and many more miles. Typical would be out to 7-8 years or 100,000-120,000 miles. IF a covered component fails, it’s replaced. Are they worth it? – YES. The reason is todays labor costs. Dealership labor rates are often $250/hr. or more. ANY car repair becomes a multi-thousand dollar outlay if there is no “extended warranty” coverage. An engine can be $6,000-$35,000, a transmission $7,000-$11,000, a failed air conditioner compressor can be $1,300-$2,000. Regardless of car make, repairs are astronomical. The other reason for purchasing an extended warranty is that while you are making those car payments for 5 years, can you AFFORD a out-of-warranty repair at all? What do these cost? Depending upon the plan and coverage, these typically cost $2,500 to $4,500. Let’s assume its a $3,000 policy premium. This will add about $50/mo. to your car payment on a 60 month contract. If you have a out of warranty repair, $50 on the car payment you can afford, a repair bill for thousands you may NOT be able to afford. Next, factory or aftermarket (dealer brand). ALWAYS the manufacturers extended warranty. Their name/logo will be right on it. Insist on it for the easiest claims process. Are the aftermarket ones bad? No. They just require pre-authorization on claims, and many of them have cleverly hiddens loopholes for denying coverage. So – read carefully. It should be noted that repairs done under these “extended warranties” can NOT be used on a California Lemon Law claim, as they are not “warranty”, they are Service Contract (insurance) repairs. Your vehicle you purchased brand new or CPO used – has it seen to many repeat trips to the dealer for warranty repairs for the SAME issue? Call us at 1-800-225-3666 for a free case evaluation.

Warranty Repairs and Lemon Law

Your new vehicle will come with a “bumper-to-bumper” manufacturers limited warranty. It will also typically come with a 5 year/60,000 mile “Powertrain” warranty covering internal engine/transmission/driveline/rear/front differential and drive axles. EV’s will come with their own warranty. Certain diesel models will come with a longer diesel engine warranty. Each manufacturer sets forth teir own limited warranties with each new vehicle sold. How does all this apply to the California Lemon Law? Our California Lemon Law applies to FACTORY WARRANTY REPAIRS ONLY. Not aftermarket sold “extended warranty” repairs. No “dealer warranties” either. The California Lemon Law does NOT recognize “I told them what was wrong”. NO. Only documented customer complaints on Repair Orders are valid. No, them writing down “perform mutli-point inspection” on the Repair Order is NOT valid. The Service Writer must enter YOUR complaint, such as “customer states CHECK ENGINE light is on”. Do NOT sign a Repair Order unless It has what YOU want written on it. If your complaint issue is of a intermittent nature, make sure you put it that way. Example: “customer states intermittently engine will stall”, or “intermittently, car won’t start”. There are two documents relative to warraty repairs. First, is the “Repair Order”. That’s when you drop off the vehicle. Then, when they are finished with warranty repairs, and you go back to pick it up, they give you a INVOICE. THIS is the copy that applies to Lemon Law. Do NOT store these in your car. Create a file at home. Do NOT write or do highlights on them, or deface them in any way. Keep them where you know you can find them. How many repairs does it take to envoke a winning Californial Lemon Law claim/case? Generally three (3), but certain circumstances will dictate two (2)., for the SAME repeated issue. Not different issues – same issue. How do you know if you have a valid California Lemon Law claim/case?. Call us at 1-800-225-3666 for a free evaluation. Have all your documents, including your new vehicle lease or purchase agreement handy when you call, as you will be discussing your repairs with our attorneys.

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