1st car in my name

So I have both a major problem with my 06 Avant and a major problem with a dealer. Actually, the big problem right now is with the dealer since I’m not even diving into the problem with the car until that is resolved. As some background, when I bought my CPO car there was a misunderstanding on the warranty timeframe. We ultimately settled on an agreement in writing that they would extend the certified warranty to the timeframe that I thought it was when buying the car with the caveat that it is only valid at their dealership.

Fast forward to now and my national Certified warranty is expired and I’m in this gap period with under 1k left before the 100k mile limit. After coming home after 40+ mile drive with no signs of anything wrong, the car sounded horrible on the next restart minutes after turning off the car. I brought it to that dealership (with the car unexpectedly turning off on me multiple times). We didn’t dive too much into the actual issue, but it is something with the timing chain and I am pretty sure (again it actually wasn’t the main focus of the conversation) he said we’re talking around $12k in repairs. The main focus of the conversation was not the actual repair because the dealership decided they are not honoring the warranty. The dealership was bought by another group and seemed to be using that as the basis to not honor the warranty. It’s in the same location, same building, etc., but under new ownership and a new name. I am not a lawyer, but it’s my general understanding that typically when you buy a business you buy both the assets and the liabilities. While quite honestly, I fully believe that they may not have known about this obligation it is nonetheless a liability I feel they assumed when they purchased the dealership.

I told them I was going to contact Audi of America and have initiated a case with them. Hopefully this issue can be resolved. I do not remember the timing, but they were either part of or I believe at least informed by the original dealership of the offer to extend my warranty. If they can’t resolve my issue, what should my next step be? I have a bunch of different back up options rattling around in my head, but am not sure the best move and whether I should initiate any of them concurrently with this AofA case.

KevinGary

The typical sale of a dealership transaction is an asset sale with the liabilities remaining with the selling entity.

Lazydog

My understanding is they bought the business all inclusive. That being said, they are responsible for this and if you have paperwork to that effect they have no choice but to honor it.

going through AoA is an option but how much pull do they really have with this business? I would be talking to a lawyer and have him look over the paperwork and then draft a letter to the dealership out lining that they have to honor the warranty or go to court over it and lose paying more then just the repairs.

newa6er

And dealers wonder why they get a bad reputation.

Phknlwyr

I am a Phknlwyr, and if your agreement is specific to the old dealer - I.e. Audi of Bakersville, LLC - and the dealer to whom the business was sold is an entirely different entity, you are probably screwed. Whether or not a business purchases both the assets AND liabilities is a matter of their contract documents. In most instances, only the assets are purchased. Disclosed liabilities may also be purchased but all that does is affect the consideration paid for the deal. If your agreements with the old dealer contains language such as, "and shall be binding upon the dealers successors and assigns," you may have a legal argument in a court but who knows what AoA will do for you. The specific language of the written agreement with the old dealer is the key: what, if anything, does it say about limitations, about sales, about transfer of the warranty, etc. You might end up having to pay for the repairs at the new dealer and then having to go after the old dealer for your costs.

1st car in my name

So as an update, AoA is still looking into some way to help me. The rep I am working with seems to really understand where I'm coming from and I believe is really working to resolve this issue. The dealer has actually refused to AoA to honor the warranty. I am assuming this was just my probably lower level representative calling up the dealership because they have now mentioned they are trying to go through other channels to have the dealership honor the warranty.

Through both your comments and from a lawyer who reviewed the letter and situation as a favor to a family member, the legal obligation does seem to directly hinge on how this transaction was structured. My warranty is still a liability to someone, but it could be to the entity that sold the dealership which will be a nightmare to track down and sue. My question to you guys is doesn't the dealership have to at least prove to me that they bought the former dealership in a way that would eliminate their liability? The fact that they bought the other company does not alone mean they are not responsible for the liability.

I should know by Tuesday the results of AoA's efforts. I have a bunch of talking points if they are unable to do anything for me (owned multiple Audis, AoA was involved or at least aware of the original warranty deal, how can a well maintained 2006 Audi with under 100k miles end up with a repair that is close to the value of the car itself, etc.), but in the end I may end up stuck trying to figure out a legal means of resolving this. Which will also mean towing my car home and being a one car family as spending $12k is not really a viable option.

Phknlwyr

The. ONLY way you would get a glimpse of the transaction documents is if you sued the dealership and sought them through discovery. That assumes that your case would survive a Motion to Dismiss and other legal maneuvers by the dealership to avoid sharing sensitive financial details with you. If you sue the old dealership to enforce the terms of your deal (contract?) with them, you would stand a better chance of discovering whether or not the liabilities were sold along with the assets. Again, this would be a rarity.