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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Family Law
Satisfied Customers: 110473
Experience:  Experienced attorney: Family law, Estate Law, SS Law etc.
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I am writing regarding an auto repair dispute. I purchased

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I am writing regarding an auto repair dispute. I purchased a used vehicle, 2007 Mistubuishi Endeavor on July 3, 2013. At the time of purchase I also purchased a warranty policy from the dealer through a company Preferred Warranties, Inc. which cost $1500.00. On august 28 I started experiencing jerking and hesitation when I made right hand turns. I called the warranty co and they told me they would open a claim, I could take it to my mechanic and to have the mechanic contact them before any repair would be done. On Friday August 30, the car began to severely hesitate during driving constantly. I took it directly to the mechanic. It was diagnosed as a transmission failure. On Friday September 6 the warranty co sent an inspector to look at the vehicle and submit a full report. Their findings were that there was a convertor seal that was rock hard and a groove worn into the convertor hub which appears to be the source of rapid fluid loss. Due to the fact it stemmed from a "seal" this will not be a covered item. The cost for a new transmission will be approx $2000.00. My mechanic continue to state that was not caused by anything I could have done and should be a covered item. What should I do considering I have only had the vehicle for less than 2 months when the problem occurred it was due to no fault of my own, and I am now without a vehicle!
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

A used car purchase under PA law, absent a warranty from the seller to the contrary, is considered to be "as is." In an as is sale, the courts hold that the buyer is to beware (caveat emptor) and that the buyer bears the risk of any hidden damages. If you purchased an additional warranty, then the written terms of that contract of warranty govern your claim. Thus, you need to prove that your damages fall within the coverage terms of the contract of warranty to hold the warranty company liable to pay.

If the cause of the damage is outside of the terms of the extended warranty, then legally in PA without any other written warranty from the seller, you have to prove that the seller knew of the defect when he sold you the car and knew the car was not fit for its intended purpose (implied warranty of merchantability) or that they knew of the defect and failed to disclose the defect at the time of the sale (implied warranty of good faith). Proving knowledge of the defect by the seller when they sold the vehicle can be difficult, but it is essential to invoke the implied warranties allowing claims against the seller.

If you cannot prove knowledge, then in an as is sale, I am sorry to say the PA courts and laws hold you as buyer are liable for the risk of any hidden defects not covered by a warranty.

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