Can the Buyers Guide Serve as a Dealer’s Written Warranty?
The warranty information the dealer provides on the Buyers Guide is not sufficient to meet the requirements of the Warranty Disclosure Rule. Therefore, his written warranty and the Buyers Guide must be two separate documents. Another federal rule — the FTC’s Rule on Pre-Sale Availability of Written Warranty Terms — requires that the dealer displays written warranties in close proximity to the vehicle or make them available to consumers, upon request, before they buy. What Disclosures Should the Dealer Make if He Offers a 50/50 Warranty or Another Type of Split Cost Warranty? Split cost warranties are those under which the dealer pays less than 100% of the cost for a warranty repair. This type of warranty includes 50/50 warranties where the dealer pays 50% of the cost for a covered repair and the buyer pays the remaining 50%. Another type of split cost warranty is one under which the buyer pays a deductible amount and the dealer pays the remaining cost for the repair. If the dealer offe
