[Bestia]

(3-5 Minute Read)

The name Steve Lehto will ring a bell to those that frequent the Jalopnik site. He is an attorney out of Michigan that deals with the state's Lemon Laws and someone who has experience dealing legally with warranty claims. The following is from Steve's blog.

For the record, I am a lobbyist and not an attorney. Below is for educational purposes and not intended as legal advise.


Will Modifications Void Your New Car Warranty?

by: Steve Lehto

http://lehtoslaw.com/will-modificati...-car-warranty/


Modifying your new car won’t automatically void your manufacturer’s warranty. But it may cost you depending on the mod. Here is what you need to know.

I got a few questions the other day about vehicle modifications and whether a manufacturer can void your warranty over them after I mentioned the Magnuson Moss Warranty Act. A few astute readers pointed out that one of the other things Mag Moss did was forbid manufacturers from requiring consumers to use any particular brand of “article or service” to invoke warranty coverage.

The law says: “No warrantor of a consumer product may condition his written or implied warranty of such product on the consumer’s using, in connection with such product, any article or service (other than article or service provided without charge under the terms of the warranty) which is identified by brand, trade, or corporate name . . .”

So, they can’t dictate what brand of parts you put on your car during the warranty period. Mr. Goodwrench, Motorcraft and Mopar are optional. But simply swapping parts is not the area of greatest concern here. The real concern is vehicle modification.

Many modifications people do to their cars fall outside of the “article or service” contemplated by the statute. Suppose you loved the way Vin Diesel could pull wheelies in 13th gear in his Charger and figured a little of that “NOS” would do the same for your car. Even if your little four-banger won’t pull wheelies in any gear, it now puts out a few more horses than before. So, if you find the transmission spitting out teeth like it’s been punched in the mouth by Mike Tyson, you can bet the manufacturer might blame the problem on the increased power being fed to the trans.

The Magnuson Moss Warranty Act requires manufacturers to honor their warranties and auto manufacturers only warrant their vehicles against manufacturing defects. Your claim here could be denied because the failure was not due to a defect in a factory component. It was caused by something added to the car: the nitrous oxide injection system which was not part of your car to begin with. That system caused a non-defective part to fail. Your mod did not void the warranty. It’s just that the failure was not caused by a factory defect.

Other popular modifications might likewise be problematic. Companies sell aftermarket modifications for Electronic Control Units which range from new programming to high performance replacement units. The net result is that the engine is now being controlled by a program unlike the one your car shipped with. Manufacturers know these mods exist and these will also run afoul of warranty coverage. Many Owner’s Manuals specifically state that warranty coverage does not extend to changes to the vehicle’s “configuration” and this limitation is not forbidden by the Magnuson Moss section cited above. The manufacturer is not requiring you to use a particular brand of item or service, they just don’t want you using one that is altered to different settings than those configured at the factory. Or, put it this way: If your ECU went bad and needed replacement, you could replace it with one of any brand you liked, so long as it controlled the engine the same as the original.

Expect your warranty claim on your drivetrain to be scrutinized if you come in with a hopped up ECU. These claims are routinely denied so long as the failure appears to be related somehow to the new – altered – performance parameters of the ECU. And this is perfectly legal according to the Federal Trade Commission which is the government entity charged with creating rules to implement the Magnuson Moss Warranty Act.
Many factory warranties also broadly exclude coverage for “racing” or “high performance” aftermarket parts and failures associated with them. Again, manufacturers can legally do this. If you slap a high performance cam in the engine and the engine fails, the manufacturer will likely argue that the cam caused something else to fail which would not have failed but for the bumpy cam you threw it. Is this fair? Depends on how you look at it. Read any Owner’s Manual you can get your hands on and you will see these warnings. Some might argue that you shouldn’t have bought the car if you disagreed with these limitations.

Obviously, an aftermarket camshaft or a hopped up ECU won’t void the entire warranty on your car. The master cylinder failed? The blue tooth quit working? Unless there is a logical connection between the mod and the part or system that failed, you should be good to go.
Keep in mind that some modifications can be undone if need be. I had a client whose stalling complaints were dismissed because he had a K&N air filter on his vehicle. If he had simply swapped the factory air filter back in before he had gone in for warranty work, the claim would probably have breezed through like any other. Instead, when the dealer could not find the problem with his engine someone pointed at the air filter and said, “That’s it.” (We rectified that decision later with some litigation.)

I know there are many mods you can’t just swap in and out whenever you feel like it. In those instances, be prepared to intelligently make the case for why that mod did not cause the problem you are complaining of. And if the dealer shoots you down, ask to speak to someone from the factory if they haven’t already been consulted.

I’ve had people tell me that the seller of the performance parts assured them that the new parts would not affect their warranty coverage. To that, all I can tell you is that they are not the one who has the final say on that; it’s the manufacturer. Perhaps you should show them where your Owner’s Manual addresses aftermarket racing parts and configuration changes to the vehicle. Ask how their product does not fit in those categories.
Also, there is a lot of confusion about the FTC’s “Consumer Alert” on aftermarket parts which is referenced above. To be clear, the FTC explicitly said: “the manufacturer or dealer must show that the aftermarket or recycled part caused the need for repairs before denying warranty coverage.” Once they have done that, they are all set. And the FTC’s ruling did not sanction alterations, modifications or racing and high performance parts. The ruling addressed “Auto Warranties & Routine Maintenance.” That is why it was called, “Auto Warranties & Routine Maintenance.” It was not called “Warranty Coverage Guaranteed for Your Chipped Nitrous-Breathing Ride.”

So, you can use any type of part or service you want during the warranty period so long as it does not alter or reconfigure the car from its factory specs. In the cases which do, you might run into problems getting warranty coverage for failures associated with those parts or modifications, especially if the parts are designed for racing or high performance. And as always, consult with a local attorney when in doubt.

[RoundelM3]

VERY informative, and it reinforces my own experience a number of years ago.

Wonder if we can get some info on the potential effect of removing Federally-mandated emissions equipment (removing/replacing catalytic converters) from a legal standpoint. I've often heard that if a shop performs this removal/replacement with a non-stock catalyst or just removes it completely, they can be fined up to $10K. Not sure if this applies to an individual doing their own work, but it would be of interest to know what sort of liability (if any) doing this would result in.

[Bestia]

Originally Posted by roundel335

VERY informative, and it reinforces my own experience a number of years ago.

Wonder if we can get some info on the potential effect of removing Federally-mandated emissions equipment (removing/replacing catalytic converters) from a legal standpoint. I've often heard that if a shop performs this removal/replacement with a non-stock catalyst or just removes it completely, they can be fined up to $10K. Not sure if this applies to an individual doing their own work, but it would be of interest to know what sort of liability (if any) doing this would result in.

Great comment. In my opinion, I believe the law was written vaguely so it could be easily amended as technology changes. Section 205 of the Clean Air Act (https://www.gpo.gov/fdsys/pkg/USCODE...tA-sec7524.htm) outlines the fines and civil penalties you are inquiring about.

The fines and penalties depend on the scope of the infraction. In some instances, individuals can be fined up to $2,500; in others, up to $25,000 PER DAY. A manufacturer or dealer can be fined the same amounts as an individual. There was an incident in the early 80s in New York where the government came down hard on businesses and individuals who were swapping/eliminating cats. I forget the fines, but the numbers were big. This was during a time when most were not following it the rules and someone needed to become an example.

My personal rule has been, if it is on the CARB approved list, then I am good with the product. Although a part may be advertised as "49 or 50 State Legal", this may be more of a marketing statement than reality.

[RoundelM3]

Originally Posted by Bestia

Great comment. In my opinion, I believe the law was written vaguely so it could be easily amended as technology changes. Section 205 of the Clean Air Act (https://www.gpo.gov/fdsys/pkg/USCODE...tA-sec7524.htm) outlines the fines and civil penalties you are inquiring about.

The fines and penalties depend on the scope of the infraction. In some instances, individuals can be fined up to $2,500; in others, up to $25,000 PER DAY. A manufacturer or dealer can be fined the same amounts as an individual. There was an incident in the early 80s in New York where the government came down hard on businesses and individuals who were swapping/eliminating cats. I forget the fines, but the numbers were big. This was during a time when most were not following it the rules and someone needed to become an example.

My personal rule has been, if it is on the CARB approved list, then I am good with the product. Although a part may be advertised as "49 or 50 State Legal", this may be more of a marketing statement than reality.

I was living in the Houston area when then-Sheriff "Pappy" Bond got in trouble because his department was using leaded regular gas in what was then (mid-70s) early catalytic-converter-equipped squad cars. Don't recall what the penalties were, but Pappy apparently had a fuel tank at Dept. HQ that would dispense the leaded fuel (which was cheaper) into the narrowed fillers of their new cars.

Interesting to see how many people from this forum are promoting or using turbo downpipes with the catalyst completely removed. Just standing next to the car will make your eyes water. So far, there are no reports I've heard about of anyone getting in hot water over that modification.

[Bestia]

Originally Posted by roundel335

I was living in the Houston area when then-Sheriff "Pappy" Bond got in trouble because his department was using leaded regular gas in what was then (mid-70s) early catalytic-converter-equipped squad cars. Don't recall what the penalties were, but Pappy apparently had a fuel tank at Dept. HQ that would dispense the leaded fuel (which was cheaper) into the narrowed fillers of their new cars.

Interesting to see how many people from this forum are promoting or using turbo downpipes with the catalyst completely removed. Just standing next to the car will make your eyes water. So far, there are no reports I've heard about of anyone getting in hot water over that modification.

HA! Pappy had a lot more issues than using just using leaded fuel.

I agree with the your statement of the decat movement. However, I think that has more to do with a generational gap and a disposal income gap. Our opinions change the older we get and our tuning options expand the more $$$ we make.

Due to my job, I have some contact with the big manufacturers. A lot of them are gear heads by nature and want to give enthusiasts what we want. Some say they already have given us what we wanted; M Division, AMG, F Sport, RS, etc. But in the quest for MORE POWER, it is never enough. The R&D cost associated with meeting the regulatory environment is astronomical and spending more to meet the "gear head community" is not financially justifiable.

The aftermarket "tuning community" fills in that void and the majority of them are good people trying to juggle with what the rules allow and what many can afford to pay for their products. I still believe the responsibility falls on the consumer, though.

[CalCarNut]

From my understanding,you can ONLY remove/change the catconv if it fails. The fines only apply if it's been removed and it was still in working order which is why a hammer to the honeycomb/side of one is in the invisible fine print when changing them...

[Bestia]

Originally Posted by CalCarNut

From my understanding,you can ONLY remove/change the catconv if it fails. The fines only apply if it's been removed and it was still in working order which is why a hammer to the honeycomb/side of one is in the invisible fine print when changing them...

That is the understating. The original act didn't make clear what would happened if a catconv needed replacement if it failed. Hence, dealerships were in a bind when it came to fix/replaced a faulty catconv. An amendment was later introduced to clear up the language.

The other reason for taking a hammer to the honeycomb/side was that there was an underground market for used catconv. They were being used to repair instead of replace.

[xpunisherx]

Originally Posted by Bestia

(3-5 Minute Read)

The name Steve Lehto will ring a bell to those that frequent the Jalopnik site. He is an attorney out of Michigan that deals with the state's Lemon Laws and someone who has experience dealing legally with warranty claims. The following is from Steve's blog.

For the record, I am a lobbyist and not an attorney. Below is for educational purposes and not intended as legal advise.


Will Modifications Void Your New Car Warranty?

by: Steve Lehto

http://lehtoslaw.com/will-modificati...-car-warranty/


Modifying your new car won’t automatically void your manufacturer’s warranty. But it may cost you depending on the mod. Here is what you need to know.

I got a few questions the other day about vehicle modifications and whether a manufacturer can void your warranty over them after I mentioned the Magnuson Moss Warranty Act. A few astute readers pointed out that one of the other things Mag Moss did was forbid manufacturers from requiring consumers to use any particular brand of “article or service” to invoke warranty coverage.

The law says: “No warrantor of a consumer product may condition his written or implied warranty of such product on the consumer’s using, in connection with such product, any article or service (other than article or service provided without charge under the terms of the warranty) which is identified by brand, trade, or corporate name . . .”

So, they can’t dictate what brand of parts you put on your car during the warranty period. Mr. Goodwrench, Motorcraft and Mopar are optional. But simply swapping parts is not the area of greatest concern here. The real concern is vehicle modification.

Many modifications people do to their cars fall outside of the “article or service” contemplated by the statute. Suppose you loved the way Vin Diesel could pull wheelies in 13th gear in his Charger and figured a little of that “NOS” would do the same for your car. Even if your little four-banger won’t pull wheelies in any gear, it now puts out a few more horses than before. So, if you find the transmission spitting out teeth like it’s been punched in the mouth by Mike Tyson, you can bet the manufacturer might blame the problem on the increased power being fed to the trans.

The Magnuson Moss Warranty Act requires manufacturers to honor their warranties and auto manufacturers only warrant their vehicles against manufacturing defects. Your claim here could be denied because the failure was not due to a defect in a factory component. It was caused by something added to the car: the nitrous oxide injection system which was not part of your car to begin with. That system caused a non-defective part to fail. Your mod did not void the warranty. It’s just that the failure was not caused by a factory defect.

Other popular modifications might likewise be problematic. Companies sell aftermarket modifications for Electronic Control Units which range from new programming to high performance replacement units. The net result is that the engine is now being controlled by a program unlike the one your car shipped with. Manufacturers know these mods exist and these will also run afoul of warranty coverage. Many Owner’s Manuals specifically state that warranty coverage does not extend to changes to the vehicle’s “configuration” and this limitation is not forbidden by the Magnuson Moss section cited above. The manufacturer is not requiring you to use a particular brand of item or service, they just don’t want you using one that is altered to different settings than those configured at the factory. Or, put it this way: If your ECU went bad and needed replacement, you could replace it with one of any brand you liked, so long as it controlled the engine the same as the original.

Expect your warranty claim on your drivetrain to be scrutinized if you come in with a hopped up ECU. These claims are routinely denied so long as the failure appears to be related somehow to the new – altered – performance parameters of the ECU. And this is perfectly legal according to the Federal Trade Commission which is the government entity charged with creating rules to implement the Magnuson Moss Warranty Act.
Many factory warranties also broadly exclude coverage for “racing” or “high performance” aftermarket parts and failures associated with them. Again, manufacturers can legally do this. If you slap a high performance cam in the engine and the engine fails, the manufacturer will likely argue that the cam caused something else to fail which would not have failed but for the bumpy cam you threw it. Is this fair? Depends on how you look at it. Read any Owner’s Manual you can get your hands on and you will see these warnings. Some might argue that you shouldn’t have bought the car if you disagreed with these limitations.

Obviously, an aftermarket camshaft or a hopped up ECU won’t void the entire warranty on your car. The master cylinder failed? The blue tooth quit working? Unless there is a logical connection between the mod and the part or system that failed, you should be good to go.
Keep in mind that some modifications can be undone if need be. I had a client whose stalling complaints were dismissed because he had a K&N air filter on his vehicle. If he had simply swapped the factory air filter back in before he had gone in for warranty work, the claim would probably have breezed through like any other. Instead, when the dealer could not find the problem with his engine someone pointed at the air filter and said, “That’s it.” (We rectified that decision later with some litigation.)

I know there are many mods you can’t just swap in and out whenever you feel like it. In those instances, be prepared to intelligently make the case for why that mod did not cause the problem you are complaining of. And if the dealer shoots you down, ask to speak to someone from the factory if they haven’t already been consulted.

I’ve had people tell me that the seller of the performance parts assured them that the new parts would not affect their warranty coverage. To that, all I can tell you is that they are not the one who has the final say on that; it’s the manufacturer. Perhaps you should show them where your Owner’s Manual addresses aftermarket racing parts and configuration changes to the vehicle. Ask how their product does not fit in those categories.
Also, there is a lot of confusion about the FTC’s “Consumer Alert” on aftermarket parts which is referenced above. To be clear, the FTC explicitly said: “the manufacturer or dealer must show that the aftermarket or recycled part caused the need for repairs before denying warranty coverage.” Once they have done that, they are all set. And the FTC’s ruling did not sanction alterations, modifications or racing and high performance parts. The ruling addressed “Auto Warranties & Routine Maintenance.” That is why it was called, “Auto Warranties & Routine Maintenance.” It was not called “Warranty Coverage Guaranteed for Your Chipped Nitrous-Breathing Ride.”

So, you can use any type of part or service you want during the warranty period so long as it does not alter or reconfigure the car from its factory specs. In the cases which do, you might run into problems getting warranty coverage for failures associated with those parts or modifications, especially if the parts are designed for racing or high performance. And as always, consult with a local attorney when in doubt.

Great post!

One question...

Does this mean that BMW can deny warranty claims if you don't have your car serviced by a BMW dealership because the service is free during the warranty period?

For Example, if I have oil changed in my car somewhere other than a dealership during the warranty period, could BMW deny warranty claims for any part of the vehicle that uses engine oil?

Thanks for your input!

[Bestia]

Originally Posted by xpunisherx

Great post!

One question...

Does this mean that BMW can deny warranty claims if you don't have your car serviced by a BMW dealership because the service is free during the warranty period?

For Example, if I have oil changed in my car somewhere other than a dealership during the warranty period, could BMW deny warranty claims for any part of the vehicle that uses engine oil?

Thanks for your input!

In the US, you can have an oil change service done at any "certified" (the word certified is used loosely here) location without fear of losing your warranty. Just make sure to keep all of your records handy.

[RoundelM3]

Agreed on the oil change - when I was putting more miles on my car, and the oil change interval was 15K miles, I would sometimes take my car to an Indy shop to get a 7500-mile oil change. As far as BMW knew, I was abiding by their maintenance schedule when I brought it in for the 15K (or annual) change.

[RoundelM3]

Originally Posted by Bestia

HA! Pappy had a lot more issues than using just using leaded fuel.

I agree with the your statement of the decat movement. However, I think that has more to do with a generational gap and a disposal income gap. Our opinions change the older we get and our tuning options expand the more $$$ we make.

Due to my job, I have some contact with the big manufacturers. A lot of them are gear heads by nature and want to give enthusiasts what we want. Some say they already have given us what we wanted; M Division, AMG, F Sport, RS, etc. But in the quest for MORE POWER, it is never enough. The R&D cost associated with meeting the regulatory environment is astronomical and spending more to meet the "gear head community" is not financially justifiable.

The aftermarket "tuning community" fills in that void and the majority of them are good people trying to juggle with what the rules allow and what many can afford to pay for their products. I still believe the responsibility falls on the consumer, though.

I'd agree with your last statement. Here in North Carolina, the State Inspection is required annually to get your car registration renewed. The results of the inspection go into the State computer system and when you apply for your renewal, they won't grant it unless you've passed the inspection within the previous 90 days. The inspection places are monitored, and even if the OBDII readout says "ready", they may randomly test the exhaust (especially if it stinks like it would without any catalysts) and fail the inspection if it detects too high a level of unburned hydrocarbons, NOx, or whatever. If it also smokes (sometimes a result of de-catting), you fail immediately.

It probably goes without saying that removing catalysts and other emissions equipment would only be legal for off-road (track/racing) vehicles only. I'm pretty sure that operating a "polluting" vehicle gets you a citation and fine and a requirement to either take the vehicle off the road or get it back into compliance. All this is subject to how strongly these laws are enforced, but I know that if you're driving a car that is blowing smoke, you're gonna get stopped and cited.

[CalCarNut]

Originally Posted by roundel335

I'd agree with your last statement. Here in North Carolina, the State Inspection is required annually to get your car registration renewed. The results of the inspection go into the State computer system and when you apply for your renewal, they won't grant it unless you've passed the inspection within the previous 90 days. The inspection places are monitored, and even if the OBDII readout says "ready", they may randomly test the exhaust (especially if it stinks like it would without any catalysts) and fail the inspection if it detects too high a level of unburned hydrocarbons, NOx, or whatever. If it also smokes (sometimes a result of de-catting), you fail immediately.

It probably goes without saying that removing catalysts and other emissions equipment would only be legal for off-road (track/racing) vehicles only. I'm pretty sure that operating a "polluting" vehicle gets you a citation and fine and a requirement to either take the vehicle off the road or get it back into compliance. All this is subject to how strongly these laws are enforced, but I know that if you're driving a car that is blowing smoke, you're gonna get stopped and cited.

With the CA laws giving you a 6yr grace period before official testing, many are probably tempted to mod their cars. I still have to consider the factory warranty piece before I'd go crazy with DPs, etc. That being said, if I really wanted to mod this car, I'd have bought a x35 powered car, not a x28 where the durability is a question mark at the higher ends of modifications..

[RoundelM3]

Originally Posted by CalCarNut

With the CA laws giving you a 6yr grace period before official testing, many are probably tempted to mod their cars. I still have to consider the factory warranty piece before I'd go crazy with DPs, etc. That being said, if I really wanted to mod this car, I'd have bought a x35 powered car, not a x28 where the durability is a question mark at the higher ends of modifications..

The N20/N26 and B48 engines are fairly durable as best I can tell. But you're correct that the N55 and new B58 engines are more powerful to begin with. You could easily get 300 hp from the 2-liter 4-cyl, but the 3-liter 6-cyl definitely has more potential without challenging its durability.

Removing one or both catalysts certainly wouldn't sit well with most BMW dealerships, though. From my experiences with my previous N54 E92 coupe, a better intercooler would provide at least 20 more flywheel HP and might not raise any eyebrows at the dealership. I'm considering that for my current F30 335i after the factory warranty is up in March of next year (at which time the BMW "Gold" extended warranty takes over). With the MPPK and MPE, the intercooler mod would be a nice addition, although those new low-end piggyback tunes from Dinan and Burger might be worth considering too.

[Mike@N54Tuning.com]

Originally Posted by roundel335

The N20/N26 and B48 engines are fairly durable as best I can tell. But you're correct that the N55 and new B58 engines are more powerful to begin with. You could easily get 300 hp from the 2-liter 4-cyl, but the 3-liter 6-cyl definitely has more potential without challenging its durability.

Removing one or both catalysts certainly wouldn't sit well with most BMW dealerships, though. From my experiences with my previous N54 E92 coupe, a better intercooler would provide at least 20 more flywheel HP and might not raise any eyebrows at the dealership. I'm considering that for my current F30 335i after the factory warranty is up in March of next year (at which time the BMW "Gold" extended warranty takes over). With the MPPK and MPE, the intercooler mod would be a nice addition, although those new low-end piggyback tunes from Dinan and Burger might be worth considering too.

Not sure an FMIC is going to give you much gains (will prevent loss of power from heat soak) but like you mentioned FMIC is not really a mod BMW looks at. I don't think I have every heard of BMW having an issue with an FMIC. Even they know their stock FMICs are crappy LOL

Mike

[RoundelM3]

As long as there's a tune installed, the FMIC will give some gains over pure stock. Higher boost and more aggressive timing will raise the IAT to the point where the stock FMIC won't cool the intake charge enough to get the full benefit of the tune (the DME's safety logic will back things down). This is more relevant for stage 2 and higher levels of tune.