Warranty Claims - Proper Reporting

91porsche01

January 15, 1991


Model Group

All All

Part Identifier Number

All 9101


Subject: In-Service Date Reporting
Demo/Retail Delivery


ATTENTION: Service Manager/Warranty Administrator

There have been increasing cases of Warranty claims being suspended due to improper reporting or the failure to report the first retail delivery date or in-use date of new vehicles or demonstrators. Claims will remain pending until the proper first retail sale or demonstrator date is reported.

Failure to properly report these dates and the possible misreporting of sales to the ultimate customer are not only contrary to Porsche Cars North America's Sales and Service Agreement and Warranty Policy but are also subject to the Federal Trade Commission Regulation 16 CFR Part 455, "Trade Regulation Rule; Sale of used motor vehicles".

The FTC rule defines a used vehicle as a vehicle driven more than the limited use necessary to move or road test a new vehicle prior to delivery to a customer. Since most vehicles receive approximately a 25 mile road test in Germany and subsequent moving and testing at the Pre-Delivery Inspection Centers which is less than 50 miles, Porsche Cars N.A. estimates that a 100 mile limit is adequate. If the vehicle has been tested or moved more than 100 miles, appropriate documentation is required.

The "Used Vehicle" rule has four basic requirements:

1. Prepare and display a "Buyers Guide" (document in place of Monroney Label) on each used vehicle offered for consumer sale.

2. Special disclosure in the contract of sale.

3. Identification of the final Warranty Terms in the contract of sale.

4. Giving the purchaser a copy of the "Buyers Guide" that includes the final Warranty Terms.

Failing to identify a vehicle with more than 100 miles on its odometer as a "used" vehicle may be in violation of the FTC rule and may be in violation of your state's respective Consumer Protection Regulations.

There have also been instances where the ultimate consumer has been given a Warranty and Maintenance Booklet noting the retail delivery date to THAT customer as the first retail delivery date, even though the vehicle was previously reported as sold. Porsche Cars N.A.'s warranty system begins the running of the warranty from the date the vehicle is first reported sold or put into Demo service. Where the vehicle was previously reported sold or put into Demo service, but later delivered to another customer, the customer's warranty expiration date is less than expected.

Additional review of the sale documents in some of those cases indicate that despite a higher than normal new car mileage, the car was sold and titled as "new". In cars where a vehicle was previously reported sold, it is critical that the buyer be told that the vehicle is purchased as a "used" vehicle that has never been titled and that the warranty period has begun to run.

IN THE CASE OF TRANSFERRED OR USED VEHICLES ALWAYS CHECK THE VOICE RESPONSE UNIT SYSTEM TO ASCERTAIN THE TRUE WARRANTY START DATE.

Please communicate the importance of these procedures to all respective dealer personnel in Service, Sales, and Leasing to ensure compliance.