Back Issues Volume 2, Issue 8    
Warranty: What it is and What it isn't
by: Sally Lawrence

People frequently question what is and isn't covered by the standard warranty issued with the new bike they just purchased. Many, unfortunately, don't understand the difference between warrantable and unwarrantable failures. Let's try to clear that up.

Generally, any warranty covers defects in design, materials or workmanship for a specified period of time. Defects in design could include things like a turn signal switch that flashes on the wrong side. Or, how about a side-stand that, when deployed, does not hold the bike steady. That couldn't happen? It happened on Ducati Monsters. They finally fixed the design for 2001.

The turn signal switch example could also easily be a defect in workmanship. Rather than being a design flaw engineered into the product, it could just as easily have been caused by improper assembly. In the case of a turn signal switch, the assembler could have cross-wired it accidentally.

Defects in materials include items such as paint that does not adhere, chrome that flakes, wires that burn through their insulation.

Is it important for the average owner to know whether the defect he's experienced is the result of a problem with design, materials or workmanship? Nope. What's important is to understand that there are different kinds of warrantable defects.

So, what's not covered? Accidents, right? Not necessarily. If you can prove that the accident is the result of a defect in design, materials or workmanship, it can be a warrantable incident. That's where all those product liability lawsuits come from. What's not covered are normal wear and tear and maintenance.

Maintaining Your Warranty

It is your responsibility to keep appropriate records to prove that you have maintained your vehicle in accordance with the manufacturer's requirements. It is not necessary to have any maintenance performed by a manufacturer's authorized dealer. The manufacturer's requirements are listed in the owner's manual for each vehicle. Pay attention to variations for different weather or operating conditions.

Your records should include receipts for consumable items like oil, filters and other lubricants. In addition, you should keep a log of what maintenance was performed by interval. Each log entry should include the date, mileage, exactly what was done and the products used to do it. If you are performing scheduled maintenance ahead of the required schedule, your log should indicate that. It's also a good idea to include things that typically are not shown on a dealer's record like tightening spokes or checking hardware tightness.

Complete maintenance records like these serve several purposes. The most obvious is in aiding your efforts in enforcing warranty issues. In addition, they can help to increase the resale value of your vehicle regardless of whether you trade it in or sell it privately. Plus, it's very easy to lose track of what you need to do if you don't keep a good record. (Did I change the oil filter the last time I changed the oil?)

Modifications to Your Vehicle

Just got to have those new pipes? Maybe a few more horsepower from an intake modification? Isn't that going to void your standard warranty? Nope. The only effect of a modification to your vehicle warranty will be to that portion of the warranty affected by the modification. Keep in mind also, that most manufacturers of aftermarket parts warrant their equipment. This means that a failure associated with a modification performed in accordance with the manufacturer's instructions should be covered under their warranty.

Why do so many dealers tell you that modifications will void your warranty? Usually, it's because they don't understand what's involved. It's the easy answer. If you modify your carburetor and your speedometer stops working, would you expect your speedo to be replaced under warranty? Absolutely! There is no conceivable relationship between the modification to the carbs and the failure of the speedo.

What about a case where you add an aftermarket exhaust and the manufacturer requires a rejet, but you don't do it. Several thousand miles later your engine seizes. Is it warrantable? Probably not. The vehicle manufacturer could claim that your installation of the exhaust and failure to rejet caused the seizure. If you had rejetted, according to the exhaust manufacturer's requirement, your chances of a warrantable repair are much greater.

Most owners choose to take their chances with the dealer on warranty so that they can personalize their bikes.

Express or Implied

We talked about the standard warranty that is described in the owner's manual and provides coverage for failures that result from defects in design, materials, or workmanship. That is what is known as an express warranty. It's a specific promise by the manufacturer or seller on which a buyer bases his decision. A claim during a sales pitch that this bike will make you feel like a god is not an express warranty. Claiming that this is the fastest production bike made in the world is an express warranty. Express warranties may be oral or written.

Implied warranties are usually not spelled out by the manufacturer but may be automatic. An implied warranty of merchantability means that the product will do what it is supposed to do. Your vehicle may also be subject to an implied warranty of fitness for a particular purpose. This means that if you tell a dealer that you want to purchase a bike to tow a trailer, and he recommends a specific model, the dealer has provided an implied warranty of fitness for a particular purpose because you relied on his recommendation in making your purchase.

Hidden Warranties

Manufacturers will often cover defects discovered outside of the warranty period, especially if those defects have proven to be common. That type of defect may be the result of what is technically a design flaw that doesn't become evident until sometime after the warranty period has expired.

Manufacturers frequently find it easier and much cheaper to continue to manufacture a product the same way for many years despite the higher than expected failure rates. There are a number of reasons for that, among them, the failure is not safety critical, the cost to change tooling or manufacturing process is higher than the cost to cover failures under warranty. So why don't they tell you about these warranties? If a company told you your valve cover gaskets would fail at 26,000 miles would you have as much faith in the rest of their product? If another company told you that the exhaust manifold will leak chronically on a particular engine configuration would you be as likely to buy the vehicle? In my case, because I knew about these hidden warranties from two different manufacturers, I was able to get the repairs done outside of the warranty period at no charge.

To take advantage of these warranties, you usually have to know about them. Sometimes you may find out about them in conversations with friends that have the same vehicle. Sometimes, the dealer may tell you about hidden warranties if you ask. I can pretty surely guarantee that if you don't ask, they won't tell you.

Extended Warranties

The salesmen tell you that an extended warranty will offer you extra protection at a greatly reduced cost from what you would otherwise have to pay. Don't believe it! Lot's of people buy extended warranties because the people at the dealership convinced them it's a good idea. If you feel compelled to listen to the sales pitch, make sure you know exactly what you're getting in writing, not just what they tell you you're getting. The reality for most people is that an extended warranty of any kind (vehicle, appliance, electronics, etc.) is just a waste of money for the buyer and a pure profit item for the seller. Think about any extended warranties you've purchased in the past and compare the cost of the warranty to the benefit you accrued by having it. Was that really cheaper than paying out of your pocket would have been? Chances are, it wasn't.

Just think, the money saved on an extended warranty could be applied to some aftermarket thing you really needed or a weekend trip on that new bike.

Problems the Dealer Doesn't Resolve

Something went wrong with your bike and when you took it to the dealer they said it was your fault and they wouldn't cover it under warranty. You're convinced that it should be covered. Before you leave, make sure you know who you talked to at the dealer. Your next step is to contact the manufacturer, preferably in writing. If you do it by telephone, make sure you record the date and time, the name and title of the person you talked to, any kind of complaint number (ask for this) and any promises they made about what they would do. The same day, send a follow-up letter to the manufacturer describing all those details. You may even want to send a copy to the dealer, sometimes that alone will shake them up and get them to resolve the issue quickly.

If none of that works, contact the local Better Business Bureau and the State Consumer Protection Agency. Your final step may be to sue in small claims court for repairs. If it goes that far and you have carefully documented everything, you should come out a winner.

Afterword

Your mileage may vary, but I've successfully used all of the information presented here for many years. If in doubt, check your state laws. There are differences from state to state.

The power of the Internet has made it much easier for people to share information and get action than ever before. We've seen it happen countless times on the ISRA forum. How many tips have you picked up that you may not have thought about (tighten that pillion seat bolt before you lose it)? How often has a member posted a problem and had it validated by other members' experiences? That's powerful ammunition to take back to a dealer or manufacturer.

I don't advocate letter-writing campaigns to dealers that don't treat a member fairly. I don't think that it's as effective a communication tool if all you can offer is, "Hey, that was a raw deal you gave to Joe. I'm going to tell all my friends not to shop there," than it is to say, "I had the same experience with my bike and the issue was resolved in the following way." If eight or ten or a hundred people can say that, it's very powerful. With almost 4,000 members in ISRA now, we are attaining that kind of power. Use it wisely.