Can a Dealership Charge You for a Repair That Should Be Covered by Warranty?

You’ve been driving your “certified pre-owned” vehicle for eight months when the transmission starts slipping. No problem—that’s why you paid extra for the warranty, right? But when you take it to the dealership, you’re hit with a $2,800 repair bill. “Sorry,” they tell you, “this isn’t covered.”

Wait a minute. You’ve got the paperwork right there showing transmission coverage for 5 years or 60,000 miles. So why is the dealership not honoring your warranty?

This scenario plays out every day across Mississippi, and most consumers end up paying for repairs that should have been covered. Let’s talk about what’s really going on when dealerships dodge warranty obligations—and what you can do about it.

Common Tactics Dealerships Use to Avoid Warranty Repairs

When a dealership tries to charge you for repairs that should be under warranty, it’s rarely a simple misunderstanding. These are calculated strategies that boost service department profits at your expense.

The “Maintenance Neglect” Runaround

“We see you didn’t get your oil changed exactly at 5,000 miles, so your warranty is void.”

This is probably the most common excuse for a dealership not honoring warranty obligations. While regular maintenance is important, minor deviations from the maintenance schedule usually don’t legally void warranty coverage, especially for parts unrelated to the maintenance.

For example, being 500 miles late on an oil change shouldn’t void warranty coverage on your power windows or transmission. The Magnuson-Moss Warranty Act (federal law) says the manufacturer must prove your maintenance neglect directly caused the failure before denying coverage.

The “You Must Have Abused It” Claim

“This kind of damage only happens if you drive the vehicle harshly.”

Suddenly, you’re being accused of racing your minivan or taking your sedan off-roading. The dealer’s service manager looks at you with suspicion, suggesting the part failure is clearly “abuse” or “misuse,” not a defect.

What they don’t tell you is that under warranty law, they bear the burden of proving abuse, not just suggesting it could have happened. Most consumers back down when challenged this way, but you shouldn’t.

The “This Part Isn’t Covered” Dodge

“Your warranty covers the engine, but not the fuel injection system.”

This tactic relies on your unfamiliarity with automotive systems and warranty details. They’ll claim that while your “powertrain” is covered, the specific component that failed is somehow separate from the powertrain.

It’s technical hair-splitting designed to confuse you into paying. In reality, major systems like powertrains include most of their component parts, and many “not covered” claims fall apart when challenged.

The “You Modified Your Vehicle” Myth

“We see you added an aftermarket stereo, so your warranty is void.”

This one’s particularly deceptive because it’s usually illegal. Under the Magnuson-Moss Warranty Act, a dealer or manufacturer cannot void your entire warranty just because you made a modification or used aftermarket parts.

They can only deny coverage if they can prove your specific modification or aftermarket part caused the failure. Your new stereo system cannot legally void warranty coverage for your transmission or engine.

Your Rights When a Dealership Refuses Warranty Coverage

When faced with a dealership not honoring warranty terms, knowing your legal rights can be the difference between paying thousands unnecessarily or getting the coverage you’re entitled to.

The Magnuson-Moss Warranty Act Is Your Shield

This federal law was created specifically to protect consumers from warranty shenanigans. Key protections include:

• Warranties must be written in clear, understandable language
• Dealerships must make warranty terms available before purchase
• The warrantor cannot require you to use specific brands of parts or services to maintain your warranty (with limited exceptions)
• If they deny a warranty claim, they bear the burden of proving the defect was caused by something you did

Mississippi State Laws Add Additional Protection

Mississippi’s Uniform Commercial Code provides implied warranties that can help even when the written warranty tries to exclude coverage. These include:

• The implied warranty of merchantability (the product will work as expected)
• The implied warranty of fitness for a particular purpose (if they knew how you would use the vehicle)

These implied warranties can provide backup coverage even when dealers try to weasel out of their written obligations.

Steps to Take When the Dealership Denies Your Warranty Claim

When you’re dealing with a dealership not honoring warranty terms, here’s your action plan:

1. Get the Denial in Writing

First, make them document exactly why they’re denying coverage. This accomplishes two things: it prevents them from changing their story later, and it often reveals the weakness in their position when they have to put it in writing.

Ask specifically:

• Which warranty provision they’re basing the denial on
• What evidence they have that the condition isn’t covered
• Who made the determination (service manager, manufacturer, etc.)

2. Request the Inspection and Diagnosis Records

Ask for copies of all diagnostic tests they performed. Under federal regulations, you have a right to see the evidence they used to deny your claim. This often reveals that proper diagnostics weren’t even performed.

3. Get an Independent Evaluation

Take your vehicle to a qualified independent mechanic for a second opinion. Ask them to document:

• The cause of the failure
• Whether it should be covered under your warranty terms
• A cost estimate for repairs

This independent documentation can be powerful evidence if you need to escalate the dispute.

4. Contact the Manufacturer Directly

Remember, your warranty is ultimately with the manufacturer, not just the dealership. Many manufacturers have customer service departments specifically for warranty disputes.

When contacting the manufacturer:

• Have your VIN number, warranty details, and service records ready
• Explain the issue clearly and without emotional language
• Reference specific warranty terms that cover your repair
• Ask for a case number and follow-up timeline

5. File a Complaint with Regulatory Agencies

If the dealership is still not honoring your warranty, file formal complaints with:

• The Mississippi Motor Vehicle Commission
• The Federal Trade Commission (FTC)
• The Better Business Bureau (BBB)

Many dealerships will suddenly “reconsider” your claim once regulatory agencies get involved. Nobody wants that kind of attention.

6. Consider Legal Action

If significant money is at stake and other approaches fail, it may be time to talk to an attorney specializing in consumer law. Many warranty disputes can be resolved with a strongly worded attorney letter, without ever going to court.

Under the Magnuson-Moss Warranty Act, if you prevail in a warranty lawsuit, the manufacturer may have to pay your attorney’s fees—which means many consumer attorneys will take these cases with little or no money upfront.

Red Flags: How to Spot a Dealership That Won’t Honor Warranties

Some dealerships are notorious for finding ways to avoid warranty repairs. Watch for these warning signs before you buy:

• They pressure you to decline the factory warranty and purchase their “better” extended warranty
• The warranty document is full of exclusions and vague language
• They can’t clearly explain what is and isn’t covered when asked
• Online reviews mention warranty claims being denied
• They try to sell you additional “warranty protection” products

The Bottom Line on Dealership Warranty Denials

Can a dealership charge you for repairs covered by warranty? Legally, no. But they count on you not knowing your rights or being willing to fight for them.

The key things to remember:

• Get everything in writing—before and after problems arise
• Understand what your warranty actually covers
• Keep detailed maintenance records
• Don’t take “no” for an answer without proper explanation
• Be willing to escalate to the manufacturer and regulatory agencies

When dealerships realize you know your rights and won’t be easily dismissed, they’re much more likely to honor the warranty you paid for.

And if you’re facing significant repair bills for items that should be covered, remember that a consultation with a consumer protection attorney can often clarify your options—and might be more affordable than paying for repairs that should have been covered all along.

Don’t let a dealership not honoring warranty obligations leave you footing the bill for their responsibility. Stand your ground, document everything, and know that the law is largely on your side in these disputes.