Car Warranty and manufacture buy out offer

[TheNJBen]

What is the name of your state? What is the name of your state? NJ

I have a 2018 car that I purchased new in 2018 and purchased a warranty from the manufacturer (Chrysler) that was to cover bumper to bumper for 7 years with no mileage limit. A little over a month ago the transmission went. The claim was ultimately approved and a rep from Chrysler said they would cover a rental for the duration of the repair. By some miracle they found a transmission as they are on indefinite back order, but it was a failure out of the box and at this time there is no date available for the part as there are literally none available. They called today and offered a buy out that is $9000 short of what is owed but reflects the blue book value. This puts me in a situation where a repair is not possible and purchasing something new with that much negative equity is impossible and unaffordable. Does anyone know what rights I have in this situation?

 

[quincy]

What is the name of your state? What is the name of your state? NJ

I have a 2018 car that I purchased new in 2018 and purchased a warranty from the manufacturer (Chrysler) that was to cover bumper to bumper for 7 years with no mileage limit. A little over a month ago the transmission went. The claim was ultimately approved and a rep from Chrysler said they would cover a rental for the duration of the repair. By some miracle they found a transmission as they are on indefinite back order, but it was a failure out of the box and at this time there is no date available for the part as there are literally none available. They called today and offered a buy out that is $9000 short of what is owed but reflects the blue book value. This puts me in a situation where a repair is not possible and purchasing something new with that much negative equity is impossible and unaffordable. Does anyone know what rights I have in this situation?

You have the right to negotiate - perhaps a better buyout price or perhaps a newer car with terms favorable to you.

 

[Zigner]

Read the terms of your warranty.

 

[quincy]

The warranty claim was already approved by Chrysler. Chrysler is unlikely to want to deal with a breach of warranty claim if it can’t guarantee the replacement part - so I would think that TheNJBen probably has a pretty good advantage in any negotiation.

 

[Zigner]

The warranty claim was already approved by Chrysler. Chrysler is unlikely to want to deal with a breach of warranty claim if it can’t guarantee the replacement part - so I would think that TheNJBen probably has a pretty good advantage in any negotiation.

The terms of the warranty will explain what the OP is entitled to if Chrysler determines that they are unable (or unwilling) to repair the car, as they did in this case. I'd be willing to bet that the OP is not entitled to, nor is he going to get anything more than the value of the car except, perhaps, a token amount. In any case, it's not going to be anywhere near an additional $9,000.

 

[quincy]

The terms of the warranty will explain what the OP is entitled to if Chrysler determines that they are unable (or unwilling) to repair the car, as they did in this case. I'd be willing to bet that the OP is not entitled to, nor is he going to get anything more than the value of the car except, perhaps, a token amount. In any case, it's not going to be anywhere near an additional $9,000.

I agree that getting Chrysler to pay $9000 more might be a challenge.

 

[adjusterjack]

Does anyone know what rights I have in this situation?

Seems to be a common lament. You're not the only one having supply chain problems. Another guy posted here waiting 7 months for parts.

I suggest you call around to wrecking yards and find a used transmission. If you can find one it can be refurbished or used as is, if it works, and see if Chrysler will warranty it.

Part of your problem is that you took out a very bad loan where the balance remains higher than the value of the car after 5 years.

Otherwise, you wait, just like everyone else, and find yourself alternate transportation.

 

[TheNJBen]

Seems to be a common lament. You're not the only one having supply chain problems. Another guy posted here waiting 7 months for parts.

I suggest you call around to wrecking yards and find a used transmission. If you can find one it can be refurbished or used as is, if it works, and see if Chrysler will warranty it.

Part of your problem is that you took out a very bad loan where the balance remains higher than the value of the car after 5 years.

Otherwise, you wait, just like everyone else, and find yourself alternate transportation.

I didn’t take out a bad loan, I drive a tremendous amount of miles. The problem isn’t the lack of transmission cores but the parts required to rebuild one. As for supply chain issues, my understanding is that NJ law allows for 30 days for warranty repairs before it’s a breach of warranty. Supply chain issues don’t negate laws. I know I drive down value of my cars hence I get Gap insurance and pay good money for an unlimited mileage warranty to insulate myself. My question is about my rights, if anyone knows, under state and federal law.

 

[quincy]

I didn’t take out a bad loan, I drive a tremendous amount of miles. The problem isn’t the lack of transmission cores but the parts required to rebuild one. As for supply chain issues, my understanding is that NJ law allows for 30 days for warranty repairs before it’s a breach of warranty. Supply chain issues don’t negate laws. I know I drive down value of my cars hence I get Gap insurance and pay good money for an unlimited mileage warranty to insulate myself. My question is about my rights, if anyone knows, under state and federal law.

You have the right to file a breach of warranty claim. I think you should try to negotiate first.

 

[TheNJBen]

You have the right to file a breach of warranty claim. I think you should try to negotiate first.

I’d much rather negotiating. I’m reasonable. I’m not looking for a fully loaded 2023 Grand Wagoneer, just a similarly priced value wise used crew cab pick up paying about what I’m paying now per month. The contract doesn’t say anything about buyback other than that they can force one of the repairs are worth more than the cash value of the car and in that case they’d pay the cash value per NADA, not the KBB trade in value they offered. Either way they approved the claim, scoured and found a transmission but it was a failure from the start and didn’t even pass the mechanic road test and now they can’t find one. It’s clearly a breach, but I’d rather come to a reasonable conclusion that doesn’t kill me when it’s their failure to be able to repair it under a very expensive warranty I purchase, and warranty underwritten by Chrysler.

 

[quincy]

I’d much rather negotiating. I’m reasonable. I’m not looking for a fully loaded 2023 Grand Wagoneer, just a similarly priced value wise used crew cab pick up paying about what I’m paying now per month. The contract doesn’t say anything about buyback other than that they can force one of the repairs are worth more than the cash value of the car and in that case they’d pay the cash value per NADA, not the KBB trade in value they offered. Either way they approved the claim, scoured and found a transmission but it was a failure from the start and didn’t even pass the mechanic road test and now they can’t find one. It’s clearly a breach, but I’d rather come to a reasonable conclusion that doesn’t kill me when it’s their failure to be able to repair it under a very expensive warranty I purchase, and warranty underwritten by Chrysler.

Okay. Then start negotiating.

Good luck.

 

[adjusterjack]

my understanding is that NJ law allows for 30 days for warranty repairs before it’s a breach of warranty.

What statute number would that be? I would like to look it up.

 

[quincy]

What statute number would that be? I would like to look it up.

I don’t believe there is a New Jersey vehicle warranty statute that mentions 30 days for warranty repairs. There is a New Jersey New Home Warranty Program that requires inspection and repairs within 30 days.

 

[TheNJBen]

I don’t believe there is a New Jersey vehicle warranty statute that mentions 30 days for warranty repairs. There is a New Jersey New Home Warranty Program that requires inspection and repairs within 30 days.

I believe it’s written “reasonable amount of time” which is generally considered 30 days total among one or several visits.

 

[quincy]

I believe it’s written “reasonable amount of time” which is generally considered 30 days total among one or several visits.

Is that what your warranty states?