STATEMENT

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

go to: http://www.ftc.gov/bcp/conline/pubs/buspubs/filledbg.pdf

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: