New Ruling Impacts Warranty Buy-Back Lawsuits

A recent California Court of Appeal decision, Williams v. FCA US - 2023 S.O.S. 460, could have a major impact on warranty buy-back cases.

Generally, lawsuits over warranty issues often end with the manufacturer (and sometimes a dealership depending on the facts) unwinding the deal and repurchasing a vehicle from a customer.

Historically, if the customer no longer owned, or sold, the vehicle, the manufacturer would get a credit for the money the customer received from selling the vehicle to a third-party. However, this ruling makes a departure from other decisions and if upheld, the manufacturer will not get this credit and must pay the customer the full amount of the buy-back, regardless of whether the customer has already received money for having sold the vehicle.