With Aftermarket Products, Does the Vehicle Warranty Still Apply? By BARRETT “BARRIE” CHARAPP BEATY, Dealer Franchise Law Specialist, Charapp & Weiss LLP Dealers often modify new vehicles with non-OEM accessories or parts, such as lift kits on trucks, because it’s what sells in their PMA or because the customer has asked for it. There has been an uptick in questions around whether certain aftermarket products void vehicle warranties. This article discusses the issues that may arise with using non-OEM accessories or parts. Prior to getting into the nitty-gritty of warranty and indemnification issues, we want to remind dealers that any aftermarket products added to the vehicle by the dealer before the consumer shops for and purchases the vehicle must be included in the vehicle’s advertised price. Here’s an example of what the math might look like for a truck with an added lift package: • MSRP of the truck: $50,000 • Discount available to all consumers: -$8,000 • Dealer-installed lift kit: +$5,000 • Processing/doc fees: +$800 • Dealer’s advertised total price: $47,800 NON-OEM ACCESSORIES ARE NOT COVERED UNDER MANUFACTURER WARRANTY In reviewing various dealer sales and service agreements, it appears that the vehicle warranty is not voided if non-OEM accessories and parts are installed on new vehicles. However, the non-OEM product would not be warrantied by the manufacturer and covered by the new vehicle warranty. If Dealer modifies or sells a modified new Motor Vehicle, or installs any equipment, accessory, recycled part or part not supplied by [Manufacturer], or sells any non [OEM] service contract for a Motor Vehicle, Dealer will disclose this fact on the purchase order and bill of sale, indicating that the modification, equipment, accessory or part is not warranted by [Manufacturer] or, in the case of a service contract, the coverage is not provided by [Manufacturer] or an affiliate. (emphasis added) The Company shall from time to time establish, by notice to the Dealer, the warranty applicable to each GENUINE PART. There shall be NO OTHER WARRANTY, express or implied, including any warranty of MERCHANTABILITY OR FITNESS, or any other obligation of the Company to the Dealer or the customer with respect to any GENUINE PART or any part thereof except the warranty established pursuant to this subparagraph. The Dealer shall expressly incorporate such warranty as a part of each sale of a GENUINE PART, in accordance with instructions set forth in the Warranty Manual. Manufacturers typically only warrant their genuine parts and accessories. Therefore, all other parts and accessories are not warranted under their bumper-to-bumper warranty. So, even though the modification to the new vehicle will not void its warranty, it could cause other issues for the dealer. The non-OEM part or accessory may have a warranty, but you need to check that vendor’s warranty to determine what it covers and any limitations it may have. VIOLATION OF DEALER AGREEMENT IF MODIFICATION AFFECTS SAFETY It appears that if the dealer modifies the new vehicle with non-OEM accessories or parts that could adversely affect the vehicle’s safety, emissions or structural integrity, the dealer could be in violation of its agreement with its manufacturer. 20 Virginia Auto Dealer
RkJQdWJsaXNoZXIy ODQxMjUw