The dealer may include a warranty in the price of the vehicle by means of the Buyer’s Guide. This type of inclusive warranty is taxable.

You must specify full or limited warranty, % of parts and labor you will pay, which systems are covered and for how long.

See sample on page 88 – 91 or

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Service agreements are required to fully and conspicuously disclose in simple and readily understood language the terms, conditions and exclusions of the contract. This type of warranty is not taxable.

  • description of the vehicle
  • date of commencement & duration
  • parts covered
  • steps to obtain warranty service
  • right to cancel provision, if any.
  • dispute resolution procedures available.
  • dealer statement of who has the legal & financial obligation to perform the warranty service & of what he will and will not do in the event of a problem.

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