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9.5 Express Warranty
An express warranty is a warranty that you affirmatively create through your words or actions. It can be written — a formal warranty document that specifies coverage terms — or it can be created by oral statements made during the sales process. If your salesperson tells a buyer “this engine is in perfect condition and will last you 100,000 miles,” that statement could create an express warranty, whether or not it’s in writing.
This is why training your salespeople on what to say — and what not to say — is so important. Salespeople should never make promises about a vehicle’s condition, reliability, or longevity unless those promises are backed by a written warranty. General puffery — “this is a great car” or “you’ll love driving this” — generally doesn’t create a warranty. But specific factual claims — “the transmission was just rebuilt” or “all four tires are new” — can create express warranties that you’ll be held to.
When you provide a written express warranty, be specific and realistic. Don’t promise more than you’re willing to deliver. A warranty that covers “bumper to bumper” creates much broader obligations than a warranty that covers “powertrain only.” Price your warranty coverage into the deal — if you’re going to warrant the engine and transmission for 90 days, factor the potential cost of repairs into your profit margin.