The legal warranty of the car and the commercial warranty: what are the differences and how do they affect buyers and sellers?

Buying a vehicle, whether new or used, is an important decision that involves considering several factors, including warranties. These not only provide peace of mind to the buyer but also reflect 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 legal warranty and commercial warranty are, how they differ, and their impact on both buyers and sellers.

Introduction to warranties in vehicle sales

The purchase of a vehicle represents a significant investment, and warranties play an essential role in protecting that investment. These warranties are presented as a commitment from the seller to resolve any defects or issues that may arise after the 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 from defects or failures that the product might have. The commercial warranty, on the other hand, is optional and offered by the seller or manufacturer as added value. This can extend coverage beyond what the legal warranty offers.

Legal warranty: mandatory and basic protection

The legal warranty is an unavoidable obligation for vehicle sellers, both professionals and individuals. This warranty ensures that, during the established period, the seller will be responsible for any 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 issues resulting from normal wear and tear or misuse of the vehicle. According to the law as of 2024, professionals must sell used cars with a 2-year warranty, unless a single year is stated in writing and signed by both parties. This last case is currently the most widespread.

Commercial warranty: optional and added value

The commercial warranty can vary significantly from one seller to another, offering coverages that go beyond pre-existing defects. This can include, for example, preventive maintenance or the repair of parts that wear out with normal use. As a complement to the legal warranty, the commercial warranty can provide greater peace of mind and protection to the consumer. Insurance companies like Autocare, partners of Dealcar, include certain wear parts within their coverage, positioning them as one of the most interesting companies in the market when looking for peace of mind.

The importance of the legal warranty for used cars

Protection for the buyer

The legal warranty for used cars protects the buyer from possible mechanical issues or hidden defects that were not disclosed at the time of sale. This means that if the vehicle has problems during the warranty period, the seller is obliged to repair or replace the affected parts at no additional cost to the buyer.

Seller's responsibility

The seller is responsible for informing the buyer about any known defect or issue with the vehicle before the sale. If the seller fails to comply with this obligation and 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 terms and coverage of the warranty.

What does the commercial warranty cover and how does it complement the legal one?

Additional coverages

The commercial warranty may include additional coverages that are not covered by the legal warranty, such as preventive maintenance, 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 they are protected against possible mechanical problems. As well as being a great selling point for the professional seller.

How the legal warranty affects professional and individual sellers

Professional sellers

Professional sellers, such as dealerships and vehicle trading companies, are obliged to offer the legal warranty to their customers. This means they must provide a legal warranty contract detailing the terms and coverage, as well as inform the buyer about any known defects or problems with the vehicle before the sale.

Individual sellers

Individual sellers, such as those selling their personal vehicle, are also obliged to offer the legal warranty if they act as professionals or regularly engage in selling vehicles. However, if the seller is an individual who does not regularly engage in vehicle sales, the legal warranty does not apply.

The seller's response to warranty claims

In the event of a warranty claim, it is crucial that both sellers and buyers know their rights and obligations to manage these situations properly.

Claim process

When a buyer presents 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 the repair or replacement is not possible or is disproportionate.

Seller's 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 terms and coverage 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 duration of protection: The warranty extension prolongs the duration of the commercial warranty, providing additional protection to the buyer for a longer period.

• Additional coverage: In some cases, the warranty extension may include additional coverage not covered by the legal or commercial warranty, such as preventive maintenance or roadside assistance.

  
  

  How to purchase a warranty extension

To purchase a warranty extension, with Dealcar's dealership software, you practically have to do nothing. Just activate in the "Extensions" tab the type of warranty and duration you want to offer to your clients, and they can purchase it at the moment of reservation through the DeaLink. This way, you have the price of the warranty extension quoted instantly, giving your client more decision-making power, thus improving your entire operation.

The role of warranties in consumer purchase decision

Warranties are a determining factor in the purchase 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. For this reason, sellers offering attractive commercial warranties, such as Coberclick and Autocare, may have a significant competitive advantage.

Warranties as a decision factor

A study conducted by coches.net and presented with the Federation of Automotive Dealers Associations (FACONAUTO) at the IV Official Used Vehicle Observatory confirms that the warranty of a vehicle is for individual clients, the second reason for purchase, only behind the price of the vehicle for sale. When faced with two cars with similar features, the user will opt for the one with greater commercial warranty.

Competitive advantage for sellers

Retailers who offer attractive commercial warranties can increase their sales and customer satisfaction, as these perceive greater security and trust in the quality of the vehicle. Moreover, commercial warranties can be used as a tool for managing breakdowns that occur during the post-sale period, facilitating problem resolution and improving customer experience.

Conclusions: The importance of understanding warranties in vehicle purchase

Warranties are an essential aspect of vehicle purchasing, 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 for making informed decisions. Ultimately, a solid warranty not only reflects the quality of the vehicle but also the reliability of the seller.

As professionals, we must stop viewing the warranty as a legal obligation, which it is, and turn it into a new line of business that does not leave anyone indifferent. The end customer, on their part, obtains greater protection (as long as they desire it). On the other hand, the dealership saves and generates more money by extending warranties while gaining new selling arguments.