Can I sue the dealership?

R

Raptor-117

New Member
Jurisdiction
California
This issue I've been dealing with infuriates me.
On 08/30/2023, I purchased a used Ford Raptor from Penske of Chevrolet of Cerritos. I also purchased a third party extended warranty through Penske. The first incident occurred on 07/12/2024. My vehicle experienced engine issues so I attempted to take the vehicle back to Penske and they refused to take possession of the vehicle. They directed me to take the vehicle directly to Norms Reeve Ford which is across the street from Penske. I then contacted Norms Reeve Ford and they advised me that I needed to contact the extended warranty. The extended warranty then told me I NEEDED to take the vehicle to Penske. The contract specifically states, and I quote, "
THIS AGREEMENT IS NOT AN INSURANCE POLICY, IT IS AN EXTENDED SERVICE AGREEMENT BETWEEN YOU AND THE SELLING DEALER. ALL OBLIGATIONS AND LIABILITIES FOR REPAIRS COVERED BY THIS EXTENDED SERVICE AGREEMENT ARE THOSE OF THE SELLING DEALER AND NOT FIRST EXTENDED SERVICE CORPORATION, WHICH ADMINISTERS THE AGREEMENT FOR THE SELLING DEALER. SEE REVERSE SIDE FOR ADDITIONAL INFORMATION REGARDING RESPONSIBILITY FOR BENEFITS.
WHAT TO DO IF REPAIRS ARE NEEDED: If your vehicle is within forty (40) miles of the Selling Dealer, you must deliver your vehicle to the Selling Dealer at the address shown on the front of this extended service agreement. If your vehicle is more than forty (40) miles from the Selling Dealer, or the Selling Dealer is no longer at that address, call First Extended Service Corporation for instructions before you deliver your vehicle to a repairing facility. You must authorize the repair facility to perform necessary diagnostic work so that the repair facility can provide an accurate estimate of repair." End Quote.

Being that my vehicle was within the 40 mile radius of Penske, I needed to bring it back. However, the dealership still refused to take possession of the vehicle. I then called the warranty company and had the warranty rep tell Penske service department that the vehicle must be dropped of there. They still refused to take possession of the vehicle. The warranty then gave the dealership two options to satisfy the contract. One was either contact them via telephone and confirm with them that they will transfer the vehicles issues to Norm Reeves Ford so they can fix it. The dealership refused. The second option was provide me with documentation that I took the vehicle to them first to satisfy the contract. Again they refused to provide any documentation that I came there. The warranty rep was on the phone when they refused everything and overheard the dealership tell me no. She noted that in my claim however advised me that the vehicle could not be repaired until Penske provided them proper documentation. Since Penske told me I could not leave my vehicle there, the warranty advised me to leave the vehicle at Norms Reeve Ford however notify them the vehicle cannot be touched until Penske satisfies the contract. Penske then told me that they already contacted my warranty company however the warranty company said they never received anything. Penske also said they already contacted Norms Reeve Ford and they were on board with everything. Once I arrived at Norms Reeve Ford I asked if they were contacted by Penske and the service advisors told me they were never contacted and weren't even aware of the situation. I have documentation of everything, paperwork, phone records, and Norms Reeve Ford's statement on paper that they were never contacted. Keep in mind my vehicle was not drivable and needed to be towed. There is a lot more to this story but I'd have to write a full on article. This is unacceptable and I want to know the legal course I can take against this dealership for breach of contract.
 
Last edited:
I am confused that you keep speaking of dropping the truck off at "Ford." Ford's headquarters is located in Michigan. Did you drop it off in Michigan?

Please explain.
 
Zigner said:
I am confused that you keep speaking of dropping the truck off at "Ford." Ford's headquarters is located in Michigan. Did you drop it off in Michigan?

Please
Zigner said:
I am confused that you keep speaking of dropping the truck off at "Ford." Ford's headquarters is located in Michigan. Did you drop it off in Michigan?

Please explain.
Click to expand...
I updated my thread. Hopefully it makes more sense. If any questions, comments, concerns please let me know.
Click to expand...
 
Is Penske a ford dealership or something else? You bought it used but was it under any factory warranty? Usually used Raptors are very often beat to hell before they are traded in or repossessed or whatever.
 
Redemptionman said:
Is Penske a ford dealership or something else? You bought it used but was it under any factory warranty? Usually used Raptors are very often beat to hell before they are traded in or repossessed or whatever.
Click to expand...
Yes, Penske is a Ford dealer here in California.

EDIT: Based on the OP's edited post above, the truck was purchased used at a Chevy dealer (Penske) here in California.
 
FYI - Norm Reeves is another Ford dealer in California.
 
Zigner said:
Yes, Penske is a Ford dealer here in California.

EDIT: Based on the OP's edited post above, the truck was purchased used at a Chevy dealer (Penske) here in California.
Click to expand...
No Penske is a Chevrolet dealer. I purchased the Raptor from Penske of Chevrolet as a used vehicle.
 
Redemptionman said:
Is Penske a ford dealership or something else? You bought it used but was it under any factory warranty? Usually used Raptors are very often beat to hell before they are traded in or repossessed or whatever.
Click to expand...
Penske Chevrolet of Cerritos. It's a Chevrolet dealer that sold me a used Raptor. The truck only had 49,000 miles and had a good CARFAX and single owner.
 
Raptor-117 said:
Penske Chevrolet of Cerritos. It's a Chevrolet dealer that sold me a used Raptor. The truck only had 49,000 miles and had a good CARFAX and single owner.
Click to expand...

If it is under 5 years old then it should have the Ford power-train warranty on it. Take it to whichever Ford dealer is closest to you or call Ford's customer service line at 1-800-392-3673.
 
Is the car still inoperable?
I would suggest that you work your way up at both the selling dealer and the service contract administrator company.
 
Redemptionman said:
If it is under 5 years old then it should have the Ford power-train warranty on it. Take it to whichever Ford dealer is closest to you or call Ford's customer service line at 1-800-392-3673.
Click to expand...
5 years or 60k miles. The OP bought it at 43k and drove it for a year. It may be over 60k at this point. If it's under 60k, then that may be why the selling dealer referred the OP to the Ford dealer.
 
Raptor-117 said:
This is unacceptable and I want to know the legal course I can take against this dealership for breach of contract.
Click to expand...

Your legal recourse, should you desire to pursue it, is retain the services of local attorney to seek whatever recourse might be available.

You might find some value in reading the following article.

-----------------_____________-----------------____________

California

California is the state of extremes, from the most damaging earthquakes in the US to the highest mountain peak in the lower 48. And its extended warranty laws are no exception.

In fact, California has two different types of extended warranty laws, each covering a different setup. For the types of service contracts we've been talking about, California requires that companies selling them be licensed car dealers. Anyone who is not a licensed dealer who sells extended warranties in California is committing a felony.

California also requires extended warranty administrators to have their own Vehicle Service Contract Provider license, which costs nearly $5,000 to get, and $847 to renew. And they must have a backup insurance company to guarantee claims payment, unless they can show that they have $100 million in assets to guarantee their obligations.

Companies providing vehicle service contracts in California must submit copies of those contracts to the state. Contracts have to be insured to guarantee claims can be paid. The insurance company must score at least a B++ rating from A.M. Best Company. The name and address of the insurance company must be in the contract. Companies worth at least $100 million do not need to comply with the insurance requirement. But they do have to include contact information in the contract to the Department of Insurance, which will receive any breach-of-contract complaints.

Unlicensed companies, or companies that don't properly insure their contracts, can be fined up to half a million bucks, or charged with a felony. Or both.

Remember, all of that is for "Vehicle Service Contract Providers," and their contracts can only be legally sold by licensed car dealerships. But there is a third-party seller option in California that's covered by a different section of the law. That's called "Mechanical Breakdown Insurance" (MBI) which mostly does the same thing as a vehicle service contract as far as paying for covered breakdowns. It's just regulated as insurance.

You don't have to be a licensed car dealer to sell mechanical breakdown insurance, but you do have to be a licensed insurance seller, and the administration company has to be a licensed insurance provider. Unlike the dealer-sold service contracts, you can buy MBI online.

To the consumer, the big difference between the two types of service contracts other than where you buy them is that, as with any insurance policy, MBI pricing is regulated by the Department of Insurance, while pricing of an extended warranty you get from a car dealership is at the discretion of the seller.

Read full California car warranty laws here.

There is also another good resource here.

 
Zigner said:
5 years or 60k miles. The OP bought it at 43k and drove it for a year. It may be over 60k at this point. If it's under 60k, then that may be why the selling dealer referred the OP to the Ford dealer.
Click to expand...
Correct the vehicle is above 60k miles now and the factory warranty expired. My issue is
 
Raptor-117 said:
Correct the vehicle is above 60k miles now and the factory warranty expired. My issue is
Click to expand...
Penske won't take possession of the vehicle to fulfill the contract I purchased through them. And it's stated specifically in there that they need to take possession of it. And yes the vehicle is currently inoperable. I was thinking of contacting corporate and Better Business Bureau. Any thoughts on that?
 
army judge said:
Your legal recourse, should you desire to pursue it, is retain the services of local attorney to seek whatever recourse might be available.

You might find some value in reading the following article.

-----------------_____________-----------------____________

California

California is the state of extremes, from the most damaging earthquakes in the US to the highest mountain peak in the lower 48. And its extended warranty laws are no exception.

In fact, California has two different types of extended warranty laws, each covering a different setup. For the types of service contracts we've been talking about, California requires that companies selling them be licensed car dealers. Anyone who is not a licensed dealer who sells extended warranties in California is committing a felony.

California also requires extended warranty administrators to have their own Vehicle Service Contract Provider license, which costs nearly $5,000 to get, and $847 to renew. And they must have a backup insurance company to guarantee claims payment, unless they can show that they have $100 million in assets to guarantee their obligations.

Companies providing vehicle service contracts in California must submit copies of those contracts to the state. Contracts have to be insured to guarantee claims can be paid. The insurance company must score at least a B++ rating from A.M. Best Company. The name and address of the insurance company must be in the contract. Companies worth at least $100 million do not need to comply with the insurance requirement. But they do have to include contact information in the contract to the Department of Insurance, which will receive any breach-of-contract complaints.

Unlicensed companies, or companies that don't properly insure their contracts, can be fined up to half a million bucks, or charged with a felony. Or both.

Remember, all of that is for "Vehicle Service Contract Providers," and their contracts can only be legally sold by licensed car dealerships. But there is a third-party seller option in California that's covered by a different section of the law. That's called "Mechanical Breakdown Insurance" (MBI) which mostly does the same thing as a vehicle service contract as far as paying for covered breakdowns. It's just regulated as insurance.

You don't have to be a licensed car dealer to sell mechanical breakdown insurance, but you do have to be a licensed insurance seller, and the administration company has to be a licensed insurance provider. Unlike the dealer-sold service contracts, you can buy MBI online.

To the consumer, the big difference between the two types of service contracts other than where you buy them is that, as with any insurance policy, MBI pricing is regulated by the Department of Insurance, while pricing of an extended warranty you get from a car dealership is at the discretion of the seller.

Read full California car warranty laws here.

There is also another good resource here.

Click to expand...
Thank you for this. I will read and follow up.
 
Sure, you could sue the dealer but that is not going to get your car fixed. There is a lot of fraud when it comes to dealers selling third-party warranties.

Did the dealer (Penski) give you a reason that they would not fix your car according to the terms of the contract? And is the warranty contract between you and Penski or between you and the warranty company.

It looks to me that there is obviously a breach of contract by one of the parties involved and you are just getting the runaround. Stop playing nice.

I would go to Penski and tell them that if they don't fix your car under the warranty, they sold you, that you will sue under consume fraud laws. You may be entitled to triple damages and attorney fees.

I would do the same with the warranty company if the contract is with them.

Then go see a consumer attorney and get some letters sent and if need be, sue them.
 
You might find the following both informative and insightful.

ABOUT ASSURANT EXTENDED WARRANTY

Assurant Vehicle Care provides extended vehicle service contracts for new and pre-owned vehicles. Formerly operating as First Extended, Assurant bought out the company in 2018. The company offers four plans and uses an app called Vehicle Care for policyholders to file digital claims, manage their plans and track upcoming vehicle maintenance. Assurant offers plans in all 50 states and even parts of Canada.

Our editor's take

Assurant Vehicle Care may be ideal if you're looking for a company that allows you to manage your vehicle service contract online. The company advertises that its mobile app (Vehicle Care by Assurant app) simplifies the claims process and makes it easier to manage your vehicle repairs. However, the company does not offer a wide variety of plans, and you'll have to go through a dealership to buy one. You may want to go with another company if you want more options or the ability to buy a plan online.

About Assurant Vehicle Care

Assurant Vehicle Care is an extended warranty company that offers four vehicle service contracts to new and certified pre-owned vehicle owners. The company's plans include basic to comprehensive coverage. Customers can manage their policies on the Vehicle Care app, which makes it easy to file claims and stay on top of vehicle maintenance. The company's headquarters is in Atlanta, Georgia.

» LEARN: What is a vehicle service contract?

Assurant Vehicle Care availability

The good news is that anyone inside the U.S. (including California, Alaska and Hawaii) and Canada can purchase an Assurant Vehicle Care contract. The key is finding local dealerships offering its plans to secure the coverage you need. Consumers with a new vehicle do not need to worry about inspections, but if you have a pre-owned vehicle and are considering the company's Certified warranty, the company will require an inspection.

Assurant Vehicle Care coverage and plans

Assurant Extended Warranty offers four plans with a range of coverage for vehicle owners. Its Comprehensive plan covers your basic powertrain components, plus a few extras like electronics and technology, though you should consult with your representative to determine what exact parts this plan covers.

In our opinion, the Base plan is a great option to start with if you want standard parts covered and more security than what the Powertrain plan covers. If you want full coverage for your vehicle, we recommend choosing the Comprehensive package.

Screenshot_20240814_102734_Opera.png

Assurant Vehicle Care coverage limits

One of the perks to choosing Assurant is that there is no limit to the number of visits and repairs you can schedule per year. To know for certain what the payout limit is on your plan, make sure you read the vehicle service agreement fully.

Assurant Vehicle Care cost

Assurant does not disclose pricing online. The only way to find exact pricing for your vehicle is to contact a partnering dealership. However, we found the average annual cost of an extended Íauto warranty is around $1,000, with plans ranging from $200 to $2,800.
There are multiple factors that determine the cost of your warranty, one of those being the tier of coverage you select. Most extended auto companies provide a range of plans to choose from. Higher-coverage plans will cost more than lower, more basic plans. Other factors that go into warranty pricing include the make, model and mileage of your vehicle.
If you select a plan offered by Assurant, you can expect to make monthly payments toward the overall cost of your plan and have a deductible ranging from $50 to $100. The higher deductible you opt to pay, the lower your plan will cost.
» MORE: How much does an extended car warranty cost?

Assurant Vehicle Care benefits

Below is a breakdown of the benefits Assurant offers with each plan.

BenefitLimit
Roadside assistance$100
Rental car reimbursements$35 per day for 5 days
Trip interruption benefits$200 per day for 5 days
OtherManufacturer's deductible reimbursement

Assurant Vehicle Care policies

Assurant does not provide much information online, so we could not find specific details regarding all of Assurant's policies. However, we did discover that all four of its plans have a 30-day waiting period and are fully transferable after a small fee. The company does not fully explain its cancellation process online, but it gives three contacts for cancellation: a phone number, email address and online chat.
Since Assurant does not sell plans directly to consumers, it's best to consult the dealership for a full breakdown of policies and regulations regarding an Assurant vehicle service contract. The company has limitations and exclusions for each plan, which you can find in the contract.


Top 590 Reviews From Legit First Extended Service Corporation Buyers

Assurant Vehicle Care, formerly First Extended, offers vehicle service contracts for new and pre-owned cars. Learn about its plans, coverage and benefits.
www.consumeraffairs.com www.consumeraffairs.com
 
Additional information


One of the worst warranty companies to dealer with as a vendor. They change the authorization amounts at the end after the vehicle has been completed as a vendor we will no longer release vehicles until assurant has paid us in full which now causes customers to be out of their vehicle longer than needed. Zero stars would not recommend this company for any reason.
Date of experience: August 13, 2024
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Reply from Assurant
2 hours ago
We apologize for the issues you may have had with our service. If you still need help, please respond to the email sent by Trustpilot with your phone number, email address, and VIN or contract number.

I have sent my samsung s24 ultra to be…


I have sent my samsung s24 ultra to be traded in at assurant now over 2weeks still no cash in bank and can't phone them as have no number and the emails are hoples feels like thay are trying to fob me off and not pay me
Date of experience: August 07, 2024
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Reply from Assurant
2 hours ago
We're sorry you're going through this, Carol. To raise a complaint, please respond to the email sent by Trustpilot with your phone number, email address, and offer number. We will include your review in the existing file if you have already raised a complaint.

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Our review rates The Warranty Group 4.2 out of 5.0 as it is now a part of Assurant and offers the same coverage options as the parent company.
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Just for the sake of clarity: Norm Reeves is (or was - he's probably dead) a person who started a business that owns auto dealerships - primarily Honda (but also including Hyndai, Ford, Volkswagen, and others) in Southern California and also in Florida and the Dallas Metroplex.

"Penske" is a transportation conglomerate founded by Roger Penske, a former race car driver. Through various subsidiaries, it owns auto and truck dealerships and rental companies shipping companies, manufacturing companies, and an auto racing team.

Cerritos, California is home to the Cerritos Auto Square, which claims to be the "world's largest auto mall," with a couple dozen dealerships in relatively small geographic area.

As for the OP's post:


Raptor-117 said:
Can I sue the dealership?
Click to expand...

Anyone can sue anyone for anything.


Raptor-117 said:
I want to know the legal course I can take against this dealership for breach of contract.
Click to expand...

It's not clear to me that the dealer breached any contract to which you're a party. That being said, if the dealer is inhibiting performance of the warranty contract (which is between you and the warranty company), then your best bet probably would be to sue both the dealership and the warranty company. You can also make a claim against the dealer's bond, which you can look up here.

By the way, leaving the vehicle at a random Ford dealer, which wasn't where you bought the vehicle and is unaffiliated with the dealer where you did buy it, is a bad idea.
 

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