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
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.
See Related Links:
- For Division 12 – Equipment of Vehicles go to: http://www.dmv.ca.gov/pubs/vctop/lov/lovd12.htm
- For Completed Buyers Guide sample on page 108 or online go to: http://www.ftc.gov/bcp/conline/pubs/buspubs/filledbg.pdf
- For Better Business Bureau Used CAR Warranties go to: http://www.bbbsilicon.org/topic008.html