A brief glossary of warranty terms are provided to inform/remind you of the lingo used in the business of warranty.
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AT-RISK VEHICLES - Differ from "Program Cars" because daily rental companies must remarket the vehicles themselves; the manufacturers do not repurchase them.
ALTERNATE TRANSPORTATION - Some manufacturers offer alternate transportation to and/or from the dealership when service is required. Some plans allow for free loaners if a vehicle is kept overnight. Ask a dealer or manufacturer about these services.
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BRANDED TITLE - Some states (over 40) require that rebuilt salvage vehicles or vehicles repurchased under Lemon Law have their titles specially labeled. Some manufacturers also brand these vehicles. See "Titles" and "Voided or Blocked Warranties."
BAILMENT COMPANY - A conversion outfitter (vans, limousines, etc.) who purchases complete or partial chassis/ cabs directly from the manufacturer and then sells them to a qualified dealer.
BASIC WARRANTY - The specific terms established by each manufacturer to repair vehicles through a specified mileage and/or time period. All factory installed parts and some dealer installed accessories are covered against defects and workmanship. Tires carry their own warranty (but can be repaired under the factory warranty by some manufacturers). Wear items and adjustments may have limited or no coverage. This "Bumper to Bumper" warranty is always the most comprehensive. Base warranty for New York state is mandated as 24 months/18,000 miles with no deductible and overrides factory terms.
BATTERY WARRANTY - The battery warranty for some manufacturers may exceed the base warranty. Some manufacturers pro-rate the replacement cost based on time in service.
BRASS HAT - See Factory Executive.
BULLETINS - Manufacturers issue repair bulletins to franchised dealers with detailed updated information on fixes and problems. Bulletins are an indication of specific known defects, but do not imply that repairs may be covered by a "Special Policy."
BUMPER TO BUMPER COVERAGE - Is a comprehensive warranty that normally covers all items under basic and drivetrain warranty for the period specified by the manufacturer. The trend is toward shorter warranties with comprehensive bumper to bumper coverage.
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CAMPAIGNS - Safety recalls/campaigns, when announced by a manufacturer, are performed at no charge to any owner. Manufacturers may elect to perform campaigns regardless of time or miles. To check for open campaigns on a vehicle, see the "Helpful Phone Numbers" section or contact a franchised dealer.
CAP - Claims analysis process
CERTIFIED USED VEHICLES - Programs offered by manufacturers, auctions, and individual dealers to provide buyers peace of mind. There is no industry standardization, but late model pre-owned vehicles are inspected and any deficiencies are repaired before sale. Certified vehicles are sold for comparably more money.
CONSEQUENTIAL DAMAGE - Is not normally warranty, but "the squeaky wheel gets oiled." This type of reimbursement usually includes motel rooms, rental costs, damaged clothing, alternate transportation, insurance deductibles and other imaginative items. These expenses are often handled directly with the customer by the manufacturer. The customer should be sure to retain all original receipts and proof of payments to remit on demand.
CORROSION WARRANTY - Covers rust-through perforation on sheet metal with actual holes. Surface corrosion from nicks, chips, and scratches, are not covered. Inner panels for Chrysler products have less coverage than outer panels. For most manufacturers, corrosion warranties do not need to be transferred. (See each specific chart for coverage time, miles and deductibles.) General Motors, in the 1994 model year, began covering surface corrosion under bumper-to-bumper warranty.
CSC - Chrysler Service Contracts
CSI - Customer Satisfaction Index or other programs are used by manufacturers to measure franchise sales and service performance. CSI and warranty are related in many ways. Proper payment of claims affects employee attitudes about working on vehicles covered under warranty.
CUSTOMIZED CONVERSIONS - Such as vans or limousines are covered under separate warranties for the add-ons not installed by the manufacturer. Be sure to obtain a written warranty disclosure when purchasing these types of vehicles.
Dealers should monitor their receivables from these companies when performing warranty repairs. Conversion warranties are often at least the same as the manufacturers. Be sure dealership employees are educated on coverage and submission.
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DEALERCONNECT - Chrysler's all inclusive website for dealerships (parts, service, sales, warranty, financing)
DEALER DEMONSTRATORS (DEMO) - Vehicles that are driven by dealership personnel. They are not titled and therefore when sold, qualify as first owner under the warranty. The warranty period begins when the vehicle was first put into service by the dealer. Extensions to time and mileage are allowed by some manufacturers.
Note: for demo cars registered in North Carolina, warranty begins the date the car was sold and registered.
DEDUCTIBLES - Deductibles may apply on diesel engines or special warranty extensions (e.g. Chrysler's special 7 yrs/ 100,000 mile powertrain warranty). Make sure customers are aware of any deductible prior to repairs.
DIAL - Dealer Information Access Link (Dedicated computer with warranty claim processing ability)
DM - District Manager - Chrysler factory representative
DPA - Dealer Performance Analysis
DRIVER EDUCATION VEHICLES - These vehicles are loaned to Certified Driver Education programs. Since they are titled by the school in most states (for insurance purposes), they must be sold by the dealer as USED VEHICLES. Be sure to transfer warranty if necessary.
DSA - Dealer Self Authorization - privilege given to dealers enabling self authorization of claims (out of warranty, restricted, claim errors)
D-Mail - Dealer mail (electronic mail)
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EMERGENCY REPAIR REIMBURSEMENTS - Always return the vehicle to a franchised dealership for warranty repairs. If this is not possible because of location or operating days/hours, then the manufacturer can arrange to reimburse the customer for repairs done at independent garages. Customers must take their detailed original receipts, defective parts and original payment records to their selling dealer. Reimbursement will be made at usual, customary, and reasonable rates.
EMISSIONS WARRANTIES - The Federal Emissions Warranty guidelines are based on federal regulations and apply to Federal-Certified Vehicles in all 50 states and U.S. possessions. In addition to the federal regulations, the state of California has adopted emissions warranty regulations applicable to California-Certified Vehicles registered and operated in that state. New York has adopted California exhaust emission standards. Beginning with the 1995 model year, Massachusetts adopted California standards, as has Connecticut with the 1998 model year. Most newer vehicles will have a "tune-up" label indicating what emissions warranty apply.
Emissions warranty is one situation where non-genuine factory parts could be covered under warranty if the customer-installed failed part is labeled "Certified to EPA Standards."
Vehicles are covered by two types of emissions control system warranty, "Emission Defect Warranty" and "Emissions Performance Warranty."
Performance Warranty is a requirement of the Clean Air Act and is applicable in areas/states that require Emission Inspection and Maintenance (I/M) testing.
If a vehicle fails an I/M test during the first 2 yrs/24,000 miles (California standards 3 yrs/50,000 miles), the dealer is authorized to do whatever it takes to bring that vehicle within specs.
The factory will pay for parts, labor and diagnosis time. In fact, if a vehicle can't be brought within specs, then the burden is on the dealer to notify the factory.
The balance of the Emissions Warranty is the Defect Warranty portion which prior to 1995 was 5 yrs/50,000 miles under federal standards.
California standards are 3 yrs/50,000 miles with some items covered for 7 yrs/70,000 miles.
Starting in the 1995 model year, under On-Board Diagnostic (OBDII) Standards, Federal Emissions Coverage for most manufacturers is consistent with their bumper-to-bumper coverage. Certain emissions components such as the catalytic converter and the electronic emissions control unit (PCM), are covered for 8 yrs/80,000 miles.
Note: It is essential when quoting emissions warranty coverage that the owner's manual or engine label be referred to for actual time/mileage and component coverage.
EVIC - Electronic Vehicle Information Center Display
EXTENDED - The portion of the new car warranty on older models that is beyond "basic" (often drivetrain). Be sure to check actual in-service dates, mileage and warranty eligibility against the Official Warranty Guide® charts.
EXTENDED SERVICE CONTRACT WARRANTIES - Are offered by the manufacturer and other agencies (backed by insurance companies) to wrap around, extend, or enhance original manufacturer warranties. Service contracts are also offered on used vehicles beyond warranty limits. Be sure to deal with reputable companies when dealing with extended contracts. Read the details - coverage varies. Extended service contract warranties are not covered in the Official Warranty Guide® (except for factory certified programs). Contact seller for details, coverage and transfer.
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FACTORY EXECUTIVE/BRASS HAT - Vehicles used by a manufacturer that are sold as a dealer demonstrator. These vehicles must have a Manufacturers Statement of Origin (M.S.O.) or they are not really factory executive cars.
FC - Failure code (technicians description of the cause of failure)
FIRST OWNER - The first owner registered by your state's motor vehicle department when the M.S.O. is exchanged for a title. Manufacturer Brass Hats and Dealer Demos are titled as first owner when sold.
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GENUINE PARTS - Dealers are required to replace parts under warranty with genuine factory parts (unless an emergency exists). When non-factory parts are used, the dealer should issue a written statement concerning warranty on such parts. When collision repairs are performed, ask for genuine parts to be used.
GLOBAL PAYMENT STATEMENT - warranty claim memo
GOODWILL ADJUSTMENTS - Manufacturers often allow their dealers or field representatives to make "goodwill adjustments" once a vehicle is out of warranty time and/or miles. (See page 18.) Decisions are based on certain criteria such as owner's loyalty, time in service, maintenance records, vehicle history, mileage and whether any service contracts are in effect. Customers may be asked to share some portion. Don't be afraid to ask for assistance.
GPOP - Global Parts Order Process
GRAY MARKET - A market employing irregular but not illegal methods; especially a market that legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer.
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IMS240 EMISSIONS TESTING - A federally mandated enhanced emissions testing program was instituted January 1, 1995, in 8 major cities and 38 states that do not meet the 1990 Clean Air Act. Currently vehicles over four years old must be tested every two years or each time there is a new owner. Testing is state run. Test sites are licensed.
IN-SERVICE DATE / IN-SERVICE MILEAGE - The date and mileage of first retail ownership. Vehicles titled by the manufacturer, dealer fleets, or rental companies constitute a registered owner. Be careful on Brass Hats, Demos, and some conversion vehicles; the warranty clock may be ticking!
IOD - Ignition Off Draw
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LOANER CAR - Some manufacturers offer alternate transportation to and/or from the dealership when service is required. Some plans allow for free loaners if a vehicle is kept overnight. Each manufacturer has specific details.
LOP - Labor operation number
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MAJOR COMPONENT COVERAGE - Some manufacturers cover certain major cost components, such as powertrain items, after the basic warranty expires. Each manufacturers' specific year owner manuals must be checked to identify exact components that have longer coverage.
MANUFACTURER STATEMENT OF ORIGIN - (M.S.O.) Is the certificate issued with each new vehicle, or Brass Hat. A vehicle cannot be sold as new, if it does not have an M.S.O. This (birth) certificate must be presented to your department of transportation before a title will be issued.
MANUFACTURER WARRANTY - The warranty that comes with the vehicle at no cost and covers parts and labor as legally set forth by each manufacturer's terms, conditions, and statements.
MOPAR - Parts warranty (out of basic factory warranty)
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NON-BAILMENT COMPANY - A conversion company that does not qualify to purchase vehicles directly from the manufacturer. Caution: These companies are considered first retail customers and a "Delayed Warranty Start" notice may need to be filed with the manufacturer to reset the warranty clock when the first true retail sale does occur.
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OPTIONS - Are extra equipment or accessories that are either installed by the manufacturer or by the dealer. Certain accessories installed by the dealer may be covered by a manufacturer's new vehicle warranty. Other accessories not manufactured by an O.E.M. may have limited coverage.
ORIGINAL EQUIPMENT - Parts and accessories that are built by original equipment manufacturers (O.E.M.) that are installed on the vehicle or provided for aftermarket sales.
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PARTS REPLACEMENT WARRANTIES - Manufacturers guarantee genuine replacement parts for specific time/mileage periods. This covers both parts replaced under manufacturer's warranty or paid for by the customer. The customer should get a written warranty statement when repair work is performed.
PDM - Claim Pending Corporate Authorization Review
POWERTRAIN / DRIVETRAIN / MAJOR COMPONENT - The portion that begins after the basic warranty expires. This normally consists of the engine, transmission/ transaxle, differential drive shaft assembly, or other major cost components. Be sure to check specific components against manufacturer's owners manual. Check owner eligibility.
POPPS - Performance Overview and Potential Problem Summary (quarterly analysis of dealer warranty performance)
PROGRAM CAR - Vehicles which manufacturers sell to lease and rental companies then buy back and resell to authorized dealers at factory auctions. These vehicles have been titled and must be sold as USED VEHICLES. Therefore the buyer is considered second owner for warranty purposes.
PTO - Power Take Off
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RA - Request for Authorization (Authorization obtained from DM)
REPAIR ORDERS - Are used by repair facilities to document the work that is performed on a vehicle. Customers should always obtain a copy of the repair order and retain it. When purchasing a used vehicle, always ask for copies of prior work that was performed. When selling a vehicle it is helpful to pass on this documentation. Keep copies of all maintenance performed.
REFURBISHED VEHICLES - Are becoming more common with manufacturers on off-lease vehicles. Some manufacturers, like Volkswagen, refurbish vehicles through company centers, while others (Cadillac, Lincoln) pay dealers to make checks and repairs. Once refurbished, these vehicles that are returned from lease may be re-leased or sold with an extended factory warranty. Be sure to check with the factory for complete details and coverages.
ROADSIDE ASSISTANCE - Is offered by most manufacturers. Programs may provide owners with a toll-free phone number to call in case of breakdowns (mechanical, out-of-fuel, lock-out, etc.). Some manufacturers pay for needed services on newer models while others may be providing a phone number only. There is a great variance in what the programs may cover. Ask about these programs.
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SEAT BELTS - Some manufacturers may have specific coverage. Since seat belts are safety related, goodwill adjustments are often made when out of warranty. Most manufacturers are supplying customers or dealers with retrofit rear seat shoulder harnesses, some at no cost, for older model cars.
SECOND OWNER - The second owner who purchases a vehicle that requires a transfer of title. Second owners may be required to pay to transfer the manufacturer's warranty. Third and subsequent owners may not be entitled to coverage. See each specific chart for transfer information requirements.
SECRET WARRANTIES - Are NOT LEGAL in a growing number of states. They are defined as a pattern of similar defects addressed and repaired at no charge by the manufacturer on a case-by-case basis. These repairs must be announced by a manufacturer as a "Special Policy."
SPA - Service Professionals Association
SPECIAL POLICY - Once a manufacturer or distributor informs a dealer of an adjustment program, the dealer must disclose its existence, along with the terms and conditions, to any consumer seeking repairs for the same condition. See the section in this book titled "Manufacturer's Special Policies" for some existing programs.
STAR - Service Technical Assistance Resource Center (Technical Assistance Hotline)
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TCR - Transportation Claim Request
TITLES - When purchasing a used vehicle ask to see the title first. Check to see if it is clear of any liens. Check to see if it has a "salvage" or "lemon" title. Some states do not require rebuilt salvage or lemon repurchase vehicles to be specially labeled. Consequently, vehicles are taken to these states to "clear" the title. Buyer beware! See "Branded Titles." Title-branding reform is back on track with the recent introduction of a bill in the House of Representatives that would create a national standard. The measure imposes a uniform titling procedure for salvage vehicles, defined as those that require repairs exceeding 75% of their retail value. The National Automobile Dealers Association (NADA) estimates that in some states as many as 70% of all "totaled" vehicles are rebuilt and returned to the roads after being bought by unsuspecting consumers and dealers.
TIRE WARRANTY - Is covered by the tire manufacturer. (For exceptions see charts.) This normally covers road hazard, appearance, and wear. Damage to tires caused by a related component defect is covered under a manufacturer's warranty. Example: Defective tie-rod end causes tires to wear prematurely.
TOWING - Most manufacturers pay for towing mandated by a component defect. Towing is normally covered by a Roadside Assistance program. Towing may only be covered to the closest franchised dealership.
TRANSPORTATION DAMAGE - Is damage that occurs while shipping or transporting a vehicle from the manufacturer to a franchised dealer. Physical damage repaired on a new vehicle may need to be disclosed to the customer at the time of purchase. Ask if any work was performed when purchasing from another dealer. State laws and factory policies apply.
TSB - Technical Service Bulletin
TWA - Transfer of Warranty Application
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URO - Universal Repair Order
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VIP - Vehicle Information Plus (VIN specific summary report)
VOIDED OR BLOCKED WARRANTIES - Can occur when the factory blocks a vehicle identification number in their computer to stop payment on any claim(s). Warranty can be voided due to odometer tampering, modifications, vehicle repurchases, hail or flood damage, wrecked or stolen vehicles, or if a vehicle has been branded. All or a portion may be blocked. See "Branded Titles."
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WARRANTY SCHEDULE - Chrysler account 116A
WCAT - Warranty Corrective Action Team
WEAR ITEMS - Some manufacturers do not cover wear items such as wiper blades, clutch plates, brake linings, etc., unless related to a defect. Most manufacturers however, advise dealers to satisfy customers during basic warranty coverage.
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"00" TIME - Actual time repair