When faced with a defective vehicle, car owners often find themselves between the dealership and the manufacturer. Each may claim the other is responsible, confusing and frustrating the consumer. Understanding who is legally obligated to repair or replace a “lemon” and the processes involved can make a significant difference in resolving the issue promptly.
Understanding the Relationship Between Manufacturers and Dealerships
At first glance, manufacturers and dealerships may seem like the same entity. However, dealerships are typically independent businesses licensed to sell and service vehicles from specific manufacturers. The manufacturer builds the car, provides warranties, and sets the repair guidelines, while the dealership handles the sale and most customer service interactions, including warranty repairs.
This separation can complicate the repair process, especially when dealing with warranty claims. When a vehicle is deemed defective, the dealership may not want to take on repairs if they believe the manufacturer should cover the costs. Conversely, manufacturers may argue that certain repairs fall outside the scope of their warranty terms.
What is Covered Under a Manufacturer’s Warranty?
A manufacturer’s warranty generally covers defects in materials or workmanship that impact the vehicle’s functionality. The terms of these warranties vary, but they often include coverage for critical components like the engine, transmission, and electrical systems for a certain number of years or miles, whichever comes first.
TypesBumper-to-bumper warranty covers most vehicle components, often for the first few years or up to a specific mileage limit.
- Powertrain Warranty: Covers major mechanical components such as the engine, transmission, and drivetrain.
Corrosion/Rust of manufacturer warranties typically include:
- Warranty: This warranty protects against rust damage, though it might only cover specific areas or types of rust.
Each warranty has limitations, exclusions, and fine print. Understanding these terms can help determine whether a manufacturer is liable for your vehicle’s issues or if additional action is required.
Who is Responsible for Warranty Repairs?
When your vehicle is still under warranty, the dealership is generally the point of contact for initiating repairs. However, the manufacturer funds these repairs, reimbursing the dealership for parts and labor. This arrangement can sometimes conflict if the dealership believes the manufacturer will only accept the claim or compensate adequately.
In dispute cases, the dealership may only proceed with repairs once they receive authorization or assurances from the manufacturer. This delay can be frustrating, especially if the problem affects the vehicle’s safety or usability. Below are some common scenarios that illustrate who is responsible in various cases:
Defective Parts Covered by Warranty
For parts covered under the manufacturer’s warranty, it’s typically the dealership’s job to diagnose and perform the repairs. You shouldn’t be charged for labor or parts, as the manufacturer reimburses the dealership. If the dealership refuses, they may await the manufacturer’s approval.
Non-Warranty Repairs
If the defect falls outside the warranty terms or coverage period, the dealership may refuse repairs, leaving you responsible for the cost.
Repeated or Ongoing Issues (Lemon Law Situations)
You may have grounds for a lemon law claim if the dealership repeatedly fails to fix the defect despite multiple attempt under the original written warranty.. Lemon laws vary by state, but they often require the manufacturer to replace or buy back vehicles with persistent, unrepairable issues. Consulting a defective vehicle lawyer can help you understand your options.
Common Challenges in Defective Vehicle Repairs and Warranties
Understanding who is responsible for covering repairs can often be straightforward, but various challenges may arise. From complex manufacturer-dealer relationships to warranty exclusions, navigating these issues requires a solid understanding of how the system works.
1. Warranty Coverage Exclusions
One of the most frustrating issues for vehicle owners is discovering that certain repairs aren’t covered under warranty due to exclusions. Manufacturer warranties often include specific exclusions for issues related to wear and tear, modifications, or damage caused by environmental factors. For example, damage to tires, brake pads, or wiper blades may not be covered if the warranty specifies them as maintenance items.
In addition, some warranties only cover the “powertrain” or essential systems, meaning non-critical issues like infotainment problems may fall outside the warranty’s scope. Familiarizing yourself with what’s excluded from your warranty can save you time and help set realistic expectations for covered repairs.
2. Approval Delays Between Manufacturer and Dealership
Another common challenge is the delay in receiving repair approval between the manufacturer and the dealership. Since dealerships must seek manufacturer approval for warranty repairs, there may be delays if the manufacturer questions the need for repair or requests additional diagnostic tests.
This back-and-forth can prolong repair times, especially if multiple parties need to approve the repair. If you’re dealing with an urgent issue, it’s essential to be proactive by following up with the dealership and requesting timely updates on the status of your claim.
3. Dealing with Recalls vs. Warranty Repairs
While a warranty covers defects in material or workmanship during a specific timeframe, a recall is a manufacturer’s announcement to repair or replace a part due to a safety-related defect. It’s essential to understand that recalls are handled separately from warranties, and they can apply to vehicles that are no longer under warranty.
For car owners facing repeated problems, researching potential recalls on your vehicle model can help identify known issues covered by the manufacturer. If a recall exists, it may offer a solution independent of your warranty status. Checking for recalls through resources like the National Highway Traffic Safety Administration (NHTSA) or the manufacturer’s website can be a proactive way to address defects.
4. Technical Service Bulletins (TSBs) and Their Role
Manufacturers often release Technical Service Bulletins (TSBs) to provide dealers with repair guidelines for known issues that may not warrant a recall but still affect certain vehicles. TSBs are highly valuable in cases where your vehicle has a persistent issue, as they guide dealerships in diagnosing and repairing common problems.
If your vehicle’s issue aligns with a TSB, the dealership should be able to provide a more efficient and accurate repair. TSBs may also influence the manufacturer’s decision to cover repairs, even outside standard warranty terms, making them worth investigating when facing repeat issues.
5. Understanding Your Rights with State Lemon Laws
When facing recurring issues the dealership can’t resolve, your state’s lemon laws may offer additional protection. Lemon laws are designed to protect consumers from vehicles with repeated, unfixable defects and usually require a specific number of repair attempts or a minimum number of days out of service within a certain period.
If you meet your state’s lemon law requirements, the manufacturer may be required to replace your vehicle or provide a buyback offer. Since each state has unique lemon law criteria, it’s essential to understand how these laws apply to your situation. This knowledge can help you make informed decisions if you reach an impasse with the dealership or manufacturer.
The Role of Documentation in Warranty and Lemon Law Claims
Thorough documentation can be the key to success in any warranty or lemon law claim. It is crucial to keep detailed records of your repair history, including every visit to the dealership, repair order, and communication with the manufacturer. This documentation can streamline the process and provide solid evidence should you need to escalate your case.
Records of each repair attempt, the dates, descriptions of the issues, and outcomes help clarify the vehicle’s history and support your claims if you pursue a lemon law remedy. Organized documentation can expedite your case and demonstrate the persistence of your vehicle’s issues, especially if it qualifies as a lemon under state law.
Final Thoughts on Navigating Manufacturer and Dealership Disputes
Understanding the roles of manufacturers and dealerships in handling warranty repairs is essential for anyone dealing with a defective vehicle. Recognizing the common challenges in these disputes—from exclusions and delays to recalls and TSBs—can empower you to navigate the repair process confidently.
Whether you’re addressing warranty exclusions, dealing with approval delays, or researching lemon law protections, being informed can help you take control of the situation. Proper documentation, persistence, and understanding of your rights can help you avoid frustration and achieve a resolution that restores your vehicle's safety and reliability.
