Watch Those Loopholes in Warranties
Warranties are supposed to give car owners peace of mind, but the thousands of lawsuits filed every year against auto makers show that often that peace of mind dissolves into anguish.
Attorneys who represent consumers warn that hidden loopholes in auto warranties often leave consumers with little recourse. Take the case of Ewa Giera, a U.S. citizen who represents the Polish television system in Hollywood.
In a recent letter to Your Wheels, Giera wrote that she had purchased an Infiniti Q45 in October 1994 for about $45,000. She shipped the car to Poland, where she frequently travels on business. When the computer that controls the antilock brake system failed, Giera figured that Nissan would fix the problem under warranty.
A lengthy battle started between Giera and Nissan, which claims that the Infiniti warranty is valid mainly in the United States and Canada. The firm points to somewhat obscure language that appears in a footnote of the owners manual, which reads, “Nissan indicates Nissan Motor Corporation U.S.A. . . . which provides consumer service for Infiniti vehicles in the Continental United States.”
Giera said she would never have bought the car had that been disclosed originally. Bill Garland, a Nissan spokesman, said the Infiniti is sold only in the U.S. and Canada and that Giera’s problem is an “incredibly unique situation.”
Although a Nissan dealership in Poland provided a diagnosis of the problem in writing, Nissan headquarters in Gardena asserted that it would not cover the cost of fixing the car.
Nissan eventually offered to reimburse Giera for the cost of the computer, if she shipped it herself to Poland. The reason for this was never made clear and Giera declined, partly because the part was subject to stiff transfer taxes that would have pushed the total cost to more than $4,000, she said.
Instead, Giera sued Nissan in Small Claims Court. She lost, and then Nissan withdrew its offer to reimburse her for the part if she would purchase it on her own, Garland acknowledged. Judgments in Small Claims cases can not be appealed.
Jonathan Justine, an Encino attorney specializing in lemon law cases, said warranty disputes are common, although usually auto makers do not try to deny service on the basis of technicalities. “I don’t think it is a fair provision,” Justine said. “If she had brought suit in Superior Court, she could have won.”
* Vartabedian cannot answer mail personally but will attempt to respond in this column to questions of general interest. Do not telephone. Write to Your Wheels, 1875 I St. N.W. #1100, Washington, DC 20006.
