Under new law, Illinois dealers must offer implied warranty on used cars
March 10, 2017
An Illinois law that takes effect July 1 will require dealers to extend an implied warranty on most used vehicles for 15 days or 500 miles, whichever occurs first.
The coverage concerns power train components only, not bumper-to-bumper coverage. The law does not apply to vehicles with more than 150,000 miles at the time of sale, or to vehicles that have been branded "rebuilt" or "flood."
A dealer’s maximum liability for repairs under the impending law is limited to the purchase price paid for the used vehicle, to be refunded to the consumer in exchange for the vehicle.
On the Buyers Guide, the "As Is" box would be checked when selling vehicles affected by the new law, but related paperwork must carry the following statement in boldface 10-point type or larger, set off from the body of the agreement:
"Illinois law requires that this vehicle will be free of a defect in a power train component for 15 days or 500 miles after delivery, whichever is earlier, except with regard to particular defects disclosed on the first page of this agreement. "Power train component" means the engine block, head, all internal engine parts, oil pan and gaskets, water pump, intake manifold, transmission, and all internal transmission parts, torque converter, drive shaft, universal joints, rear axle and all rear axle internal parts, and rear wheel bearings. You (the consumer) will have to pay up to $100 for each of the first 2 repairs if the warranty is violated."
The warranty does not extend to damage that occurs as a result of off-road use, racing, towing, abuse and other negligence.
The legislation was spawned after an Illinois woman’s used car broke down on her way home after buying it from a used-car store. She returned to the store and was offered another vehicle, which also broke down on her trip home.
Gov. Bruce Rauner signed House Bill 4377
last August. He vetoed similar legislation a year earlier because that bill affected only independent dealerships, not those that also sell new vehicles.