Car factory warranty: what must be honored in Puerto Rico

The law starts from an idea its own statement of motives writes down: the factory warranty’s cost is already included in the vehicle’s price, so the consumer paid for it in advance. The obligations follow from there. The manufacturer answers for manufacturing, design, assembly or production defects in the vehicles it makes. The dealer — authorized or independent — who sells a new vehicle is required to effectively provide warranty service. And the manufacturer pays whoever provided that service, uniformly, reasonably and adequately, without being able to force a dealer to service vehicles it did not sell, or to institute practices giving some sellers a competitive advantage over others.

It applies to the "consumer", defined as anyone acquiring a motor vehicle for personal, commercial, agricultural or industrial use and not for resale. And to the "new motor vehicle", which the law defines more broadly than it sounds: any motor vehicle registered with Puerto Rico’s Department of Transportation and Public Works whose factory warranty has not expired. That is, a second-hand car still within the factory warranty falls inside that definition. "Motor vehicle" includes every vehicle, truck, van or bus moved by other than muscular force. The law applies equally to all manufacturers whose vehicles are sold in Puerto Rico, except those who convincingly prove to DACO that they already offer Puerto Rican consumers the same or better warranties and are able to make them effective; those are exempt from the remaining provisions by Department certification, which must also periodically review whether they should keep the exemption.

• That the vehicle is registered with DTOP and its factory warranty has not expired: that is what the law calls a "new motor vehicle".Verified against the official source
• That you acquired it for personal, commercial, agricultural or industrial use and not for resale.Verified against the official source

• The factory warranty certificate you were given, which must come with a Spanish translation at no additional cost.

1. 1

   Step 1: Compare your warranty with the U.S. one

   It is the heart of the law and the strongest argument it gives you. The factory warranty to be extended and honored in Puerto Rico may not be inferior in terms and conditions to the one the manufacturer extends for the consumer’s benefit in the continental United States, and shall always be whichever is greater in scope and breadth of benefits. If the warranty you were given here covers fewer years, fewer miles or fewer parts than the same model’s warranty there, that is exactly what the law prohibits.

2. 2

   Step 2: Do not accept "not here, you did not buy it from us"

   Article 5 is one line: every manufacturer shall extend the factory warranty to every new motor vehicle registered in Puerto Rico, regardless of where and from whom the consumer acquired it. And Article 7(a) requires the manufacturer to set up an adequate system assuring the consumer there will be places in Puerto Rico where its factory warranties are honored, with that same independence. If you bought the car outside Puerto Rico or from an independent dealer, that clause is yours.

3. 3

   Step 3: Ask DACO for what the manufacturer had to file

   This is the step almost nobody takes and the one that changes a discussion. Article 7(b) requires every manufacturer to file with DACO an exact copy of the written factory warranty it extends in Puerto Rico; the name and address of the places in Puerto Rico where they are honored; the requirements and conditions of warranty service and the payment rules; the name and address of its factory representative; and — the decisive part — an exact copy of the written factory warranty it extends in the continental United States where the greater warranty in terms and conditions is recognized. Those documents exist and they are at the Department.

4. 4

   Step 4: Demand the warranty in Spanish, free of charge

   Article 6 says it at the end: the manufacturer, distributor or seller is required to file with DACO a copy of the warranty to be offered to the consumer with its Spanish translation, without this implying an additional cost for consumers. If you were handed a booklet only in English and they want to charge you to translate it, that is a clear violation.

5. 5

   Step 5: If they do not comply, it is a deceptive practice

   Article 14 frames non-compliance: any manufacturer and any dealer failing to comply with this law commits a deceptive business or trade practice, or an unfair method of competition, and is subject to Act 77-1964. The forum is the Department of Consumer Affairs, which also has the power to adopt the rules and regulations needed under its organic act.

The Department of Consumer Affairs is the forum the law designates: it is given jurisdiction to implement its provisions, it receives the manufacturers’ warranty filings, and it adjudicates complaints. You can see services at daco.pr.gov and file through serviciosenlinea.daco.pr.gov.

• Calling it a "lemon law": it orders no buyback or replacement after failed repairs.
• Believing it only covers cars bought in Puerto Rico; Article 5 expressly says otherwise.
• Thinking "new vehicle" means zero miles: the law defines it as registered with DTOP and under a live factory warranty.
• Accepting a local warranty shorter than the U.S. one without comparing the two documents.
• Not asking DACO for the copy of the continental warranty the manufacturer had to file.
• Paying for the Spanish translation of the warranty, which the law forbids charging for.
• Forgetting the seller of the new vehicle is also required to effectively provide warranty service.

These are the government pages this guide is based on.

• Departamento de Asuntos del Consumidor (DACO)

  DACO

  bvirtualogp.pr.gov

• DACO services

  DACO

  www.daco.pr.gov

• DACO online services

  DACO

  serviciosenlinea.daco.pr.gov