Buying a vehicle, whether new or second-hand, is an important decision that involves considering several factors, including warranties. These not only offer peace of mind to the buyer, but also are a reflection of the seller's commitment to quality. However, not all warranties are the same, and understanding their differences is crucial. In this article, we will explore in detail what the legal warranty and the commercial warranty are, how they differ, and their impact on both buyers and sellers.
Introduction to warranties in vehicle sales
Buying a vehicle involves a significant investment, and warranties play an essential role in protecting that investment. These warranties are presented as a commitment by the seller to resolve any defect or problem that may arise after purchase. There are two main types: the legal warranty and the commercial warranty, each with its own characteristics and conditions.
Fundamental differences between legal and commercial warranties
The legal warranty is mandatory by law and protects the consumer against defects or faults that the product may have. The commercial warranty, on the other hand, is optional and offered by the seller or manufacturer as an added value. This can extend cover beyond what the legal warranty offers.
Legal warranty: mandatory and basic protection
The legal warranty is an unavoidable obligation for vehicle sellers, whether professional or private. This warranty ensures that, during the established period, the seller will be responsible for pre-existing defects that were not disclosed at the time of sale. However, it is important that buyers understand that this warranty has limitations and does not cover problems arising from normal wear and tear or misuse of the vehicle. According to the law as of 2024, professionals must sell second-hand cars with 2 years' warranty, unless one year is stated in writing and signed by both parties. This latter case is currently the most common.
Commercial warranty: optional and added value
The commercial warranty can vary significantly from one seller to another, offering cover that goes beyond pre-existing defects. This can include, for example, preventative maintenance or the repair of parts that wear with normal use. As a complement to the legal warranty, the commercial warranty can offer greater peace of mind and protection to the consumer. Insurance companies such as Autocare, partners of Dealcar, include certain wear-and-tear parts within their cover, positioning it as one of the most interesting companies on the market when looking for peace of mind.
The importance of the legal warranty in second-hand cars
Protection for the buyer
The legal warranty on second-hand cars protects the buyer from possible mechanical problems or hidden defects that were not disclosed at the time of sale. This means that, if the vehicle presents problems during the warranty period, the seller is obliged to repair or replace the affected parts at no additional cost to the buyer.
Seller responsibility
The seller is responsible for informing the buyer of any known defect or problem in the vehicle before the sale. If the seller does not comply with this obligation and the buyer discovers problems after purchase, the seller may face penalties and damage to their reputation. In addition, the seller must provide the buyer with a legal warranty contract detailing the conditions and cover of the warranty.
What does the commercial warranty cover and how does it complement the legal one?
Additional cover
The commercial warranty can include additional cover that is not covered by the legal warranty, such as preventative maintenance, the repair of worn parts or even roadside assistance.
Extended duration
In some cases, the commercial warranty can extend the duration of the legal warranty, offering additional protection to the buyer for a longer period. This can be especially attractive for those who plan to keep the vehicle for several years and want to ensure that they are protected against possible mechanical problems. As well as being a great sales argument in favour of the professional seller.
How the legal warranty affects professional and private sellers
Professional sellers
Professional sellers, such as dealerships and vehicle sales companies, are obliged to offer the legal warranty to their customers. This means they must provide a legal warranty contract detailing the conditions and cover of the warranty, as well as informing the buyer of any known defect or problem in the vehicle before the sale.
Private sellers
Private sellers, such as those selling their personal vehicle, also have the obligation to offer the legal warranty if they act as professionals or regularly sell vehicles. However, if the seller is a private individual who does not regularly engage in vehicle sales, the legal warranty does not apply.
The seller's response to warranty claims
When it comes to a warranty claim, it is crucial that both sellers and buyers know their rights and obligations in order to handle these situations properly.
Claims process
When a buyer submits a warranty claim, the seller must assess the problem and determine whether it is covered by the legal or commercial warranty. If the problem is covered, the seller must repair or replace the affected parts at no additional cost to the buyer. In some cases, the seller may also offer a price reduction or the return of the vehicle if repair or replacement is not possible or would be disproportionate.
Seller responsibility
The seller is responsible for ensuring that the vehicle is delivered in the agreed condition and without hidden defects. If the buyer discovers problems after the purchase, the seller may face penalties and damage to their reputation. In addition, the seller must provide the buyer with a legal warranty contract detailing the conditions and cover of the warranty.
Warranty extension: what is it and how does it work?
The warranty extension is an additional service that prolongs the duration of the commercial warranty beyond its original term. This service, offered by Autocare, can be an excellent investment for those seeking maximum long-term protection and a new business avenue for professionals.
Benefits of the warranty extension
The warranty extension offers several benefits for vehicle buyers, including:
Longer protection period: The warranty extension prolongs the duration of the commercial warranty, offering additional protection to the buyer for a longer period.
Additional cover: In some cases, the warranty extension may include additional cover that is not covered by the legal or commercial warranty, such as preventative maintenance or roadside assistance.
How to purchase a warranty extension
To purchase a warranty extension, with Dealcar's dealership software, you hardly have to do anything. Simply activate in the "Extensions" tab the type of warranty and duration you want to offer your customers, and they can purchase it at the time of booking through DeaLink. In this way, you get the price of the warranty extension quoted instantly and give your customer more decision-making power, thereby improving your whole operation.
The role of warranties in the consumer's buying decision
Warranties are a determining factor in the buying decision of many consumers. A vehicle that comes with a solid warranty can be much more attractive, as it reflects the seller's confidence in the quality of their product. Therefore, sellers who offer attractive commercial warranties, such as Coberclick and Autocare, can have a significant competitive advantage.
Warranties as a decision-making factor
A study carried out by coches.net and presented with the Spanish Association of Motor Vehicle Dealerships (FACONAUTO) at the IV Observatory of the used-vehicle market of the official dealer network confirms that a vehicle warranty is, for private customers, the second reason for purchase, only behind the sale price of the vehicle. Faced with two cars with similar performance, the user will choose the one with the greater commercial warranty.
Competitive advantage for sellers
Sellers who offer attractive commercial warranties can increase their sales and customer satisfaction, as customers perceive greater security and confidence in the vehicle's quality. In addition, commercial warranties can be used as a tool for managing breakdowns occurring during after-sales service, making it easier to resolve problems and improving the customer experience.
Conclusions: The importance of understanding warranties when buying vehicles
Warranties are an essential aspect of buying vehicles, offering protection and peace of mind for both buyers and sellers. Understanding the differences between the legal and commercial warranty, as well as knowing the benefits of warranty extensions, is fundamental to making informed decisions. In the end, a solid warranty is not only a reflection of the vehicle's quality, but also of the seller's reliability.
As professionals, we must stop seeing the warranty as a legal obligation, which it is, and turn it into a new business line that leaves no one indifferent. The end customer, for their part, gets greater protection (whenever they want it). On the other hand, the dealership saves and generates more money by extending warranties while gaining new sales arguments.
Buying a vehicle, whether new or second-hand, is an important decision that involves considering several factors, including warranties. These not only offer peace of mind to the buyer, but also are a reflection of the seller's commitment to quality. However, not all warranties are the same, and understanding their differences is crucial. In this article, we will explore in detail what the legal warranty and the commercial warranty are, how they differ, and their impact on both buyers and sellers.
Introduction to warranties in vehicle sales
Buying a vehicle involves a significant investment, and warranties play an essential role in protecting that investment. These warranties are presented as a commitment by the seller to resolve any defect or problem that may arise after purchase. There are two main types: the legal warranty and the commercial warranty, each with its own characteristics and conditions.
Fundamental differences between legal and commercial warranties
The legal warranty is mandatory by law and protects the consumer against defects or faults that the product may have. The commercial warranty, on the other hand, is optional and offered by the seller or manufacturer as an added value. This can extend cover beyond what the legal warranty offers.
Legal warranty: mandatory and basic protection
The legal warranty is an unavoidable obligation for vehicle sellers, whether professional or private. This warranty ensures that, during the established period, the seller will be responsible for pre-existing defects that were not disclosed at the time of sale. However, it is important that buyers understand that this warranty has limitations and does not cover problems arising from normal wear and tear or misuse of the vehicle. According to the law as of 2024, professionals must sell second-hand cars with 2 years' warranty, unless one year is stated in writing and signed by both parties. This latter case is currently the most common.
Commercial warranty: optional and added value
The commercial warranty can vary significantly from one seller to another, offering cover that goes beyond pre-existing defects. This can include, for example, preventative maintenance or the repair of parts that wear with normal use. As a complement to the legal warranty, the commercial warranty can offer greater peace of mind and protection to the consumer. Insurance companies such as Autocare, partners of Dealcar, include certain wear-and-tear parts within their cover, positioning it as one of the most interesting companies on the market when looking for peace of mind.
The importance of the legal warranty in second-hand cars
Protection for the buyer
The legal warranty on second-hand cars protects the buyer from possible mechanical problems or hidden defects that were not disclosed at the time of sale. This means that, if the vehicle presents problems during the warranty period, the seller is obliged to repair or replace the affected parts at no additional cost to the buyer.
Seller responsibility
The seller is responsible for informing the buyer of any known defect or problem in the vehicle before the sale. If the seller does not comply with this obligation and the buyer discovers problems after purchase, the seller may face penalties and damage to their reputation. In addition, the seller must provide the buyer with a legal warranty contract detailing the conditions and cover of the warranty.
What does the commercial warranty cover and how does it complement the legal one?
Additional cover
The commercial warranty can include additional cover that is not covered by the legal warranty, such as preventative maintenance, the repair of worn parts or even roadside assistance.
Extended duration
In some cases, the commercial warranty can extend the duration of the legal warranty, offering additional protection to the buyer for a longer period. This can be especially attractive for those who plan to keep the vehicle for several years and want to ensure that they are protected against possible mechanical problems. As well as being a great sales argument in favour of the professional seller.
How the legal warranty affects professional and private sellers
Professional sellers
Professional sellers, such as dealerships and vehicle sales companies, are obliged to offer the legal warranty to their customers. This means they must provide a legal warranty contract detailing the conditions and cover of the warranty, as well as informing the buyer of any known defect or problem in the vehicle before the sale.
Private sellers
Private sellers, such as those selling their personal vehicle, also have the obligation to offer the legal warranty if they act as professionals or regularly sell vehicles. However, if the seller is a private individual who does not regularly engage in vehicle sales, the legal warranty does not apply.
The seller's response to warranty claims
When it comes to a warranty claim, it is crucial that both sellers and buyers know their rights and obligations in order to handle these situations properly.
Claims process
When a buyer submits a warranty claim, the seller must assess the problem and determine whether it is covered by the legal or commercial warranty. If the problem is covered, the seller must repair or replace the affected parts at no additional cost to the buyer. In some cases, the seller may also offer a price reduction or the return of the vehicle if repair or replacement is not possible or would be disproportionate.
Seller responsibility
The seller is responsible for ensuring that the vehicle is delivered in the agreed condition and without hidden defects. If the buyer discovers problems after the purchase, the seller may face penalties and damage to their reputation. In addition, the seller must provide the buyer with a legal warranty contract detailing the conditions and cover of the warranty.
Warranty extension: what is it and how does it work?
The warranty extension is an additional service that prolongs the duration of the commercial warranty beyond its original term. This service, offered by Autocare, can be an excellent investment for those seeking maximum long-term protection and a new business avenue for professionals.
Benefits of the warranty extension
The warranty extension offers several benefits for vehicle buyers, including:
Longer protection period: The warranty extension prolongs the duration of the commercial warranty, offering additional protection to the buyer for a longer period.
Additional cover: In some cases, the warranty extension may include additional cover that is not covered by the legal or commercial warranty, such as preventative maintenance or roadside assistance.
How to purchase a warranty extension
To purchase a warranty extension, with Dealcar's dealership software, you hardly have to do anything. Simply activate in the "Extensions" tab the type of warranty and duration you want to offer your customers, and they can purchase it at the time of booking through DeaLink. In this way, you get the price of the warranty extension quoted instantly and give your customer more decision-making power, thereby improving your whole operation.
The role of warranties in the consumer's buying decision
Warranties are a determining factor in the buying decision of many consumers. A vehicle that comes with a solid warranty can be much more attractive, as it reflects the seller's confidence in the quality of their product. Therefore, sellers who offer attractive commercial warranties, such as Coberclick and Autocare, can have a significant competitive advantage.
Warranties as a decision-making factor
A study carried out by coches.net and presented with the Spanish Association of Motor Vehicle Dealerships (FACONAUTO) at the IV Observatory of the used-vehicle market of the official dealer network confirms that a vehicle warranty is, for private customers, the second reason for purchase, only behind the sale price of the vehicle. Faced with two cars with similar performance, the user will choose the one with the greater commercial warranty.
Competitive advantage for sellers
Sellers who offer attractive commercial warranties can increase their sales and customer satisfaction, as customers perceive greater security and confidence in the vehicle's quality. In addition, commercial warranties can be used as a tool for managing breakdowns occurring during after-sales service, making it easier to resolve problems and improving the customer experience.
Conclusions: The importance of understanding warranties when buying vehicles
Warranties are an essential aspect of buying vehicles, offering protection and peace of mind for both buyers and sellers. Understanding the differences between the legal and commercial warranty, as well as knowing the benefits of warranty extensions, is fundamental to making informed decisions. In the end, a solid warranty is not only a reflection of the vehicle's quality, but also of the seller's reliability.
As professionals, we must stop seeing the warranty as a legal obligation, which it is, and turn it into a new business line that leaves no one indifferent. The end customer, for their part, gets greater protection (whenever they want it). On the other hand, the dealership saves and generates more money by extending warranties while gaining new sales arguments.
