Union, SC asked in Consumer Law for North Carolina

Q: Motor repair cost $15,000, warranty company is covering $10,000 cap, 3 weeks after purchase. Is this even legal?

We put less than 3,000 miles. The mechanic is saying the warranty company is only going to cover $10,000 and the car requires another motor, making total cost around $15,000. We put down payment, insurance, extended warranty as there was no dealer warranty. The warranty company technically accepted the claim, but the whole repair cost isn't going to be covered. The mechanic had to take the engine apart to determine cause and let the warranty company know. That labor is already over $1,100. Is this even legal? A person can take all reasonable steps and more, and still end up without a running car, probably ruined credit after this, and no way to provide or pay bills, so 11 days from homeless, as they serve eviction notice after that long. I seriously don't see how this is legal. My family is going to be homeless because cars360 sold us a bad car. We bought it in NC. We live in SC. Today is 30 days since purchasing.

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1 Lawyer Answer
Lynn Ellen Coleman
Lynn Ellen Coleman
  • Licensed in North Carolina

A: An attorney would have to review the warranty itself to make sure that all covered charges are being paid for. How much is the deductible (the amount you have to pay for repairs). Is there a limitation on how long you have to own the car before the warranty will come in to effect, or a limitation on how much the warranty will pay within the first few months or miles driven? No lawyer on an advice website can advise you specifically without reviewing all of the documents you signed at purchase. "Less than 3,000 miles" in 30 days sounds like over 2,500 miles. This seems like a lot of miles in 30 days, so maybe there is a mileage limitation that allows the warranty company to pay less?

Technically yes, this is allowed under NC law. Your financial issues have nothing at all to affect the rights you have under the contracts you signed. North Carolina has no "lemon law" for used cars. Contact an attorney directly who is licensed in North Carolina who can review the contract for you. I wish you the nest of luck and I am sorry you are in this situation.

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