warranties investment car-insurance
Warranty repair and collector&#39;s items
<p>I recently watched a <a href="https://www.youtube.com/watch?v=zkGyvKKabFc" rel="nofollow noreferrer">YouTube video</a> about a brand new Corvette Z06 engine blowing up after 52 miles.  There are many <a href="https://www.google.com/search?q=z06%20engine%20blows%20at%2053%20miles&amp;rlz=1C1CHBF_enUS1030US1030&amp;oq=z06%20engi&amp;aqs=chrome.1.0i131i433i512j0i3l3j69i57j0i512j69i61l2.12390j0j7&amp;sourceid=chrome&amp;ie=UTF-8" rel="nofollow noreferrer">articles</a> about this incident, as well.  Barring anything being the owner's fault, the lawyer in the video said that the dealer would put in a new engine and that would be that.  He did mention about collectabity of the car could be damaged.  However, he said he would not get into that.</p>
<p>However, I am curious.  People buy new cars as investments and not for driving.  Having matching VINs on the car and engine demands higher prices upon resale.</p>
<p>While no one can see into the furure and no what something will actually be worth, there is no lack of evidence that certain cars will increase in value.  Some cars go up in value by orders of magnitude.  Take the Lamborghini Miura, which was $20,000 new.  Now some are worth over $2,000,000.  Of course, all this can apply to more than cars as there are other things that follow suit.</p>
<p>I definitely feel that Chevrolet has no obligation to do anything other than replace the engine.  However, this does theoretically hurt the long term value of the car.  Is there any legal recovery for this loss?</p>
<p>Irrelavent, to the question, this guy said he is done with Chevy and will sell the car when its repaired.  He will likely make more than he paid for it as well, as these vehicles are heavily in demand.  So that is a positive for him.</p>

<p>Barring manufacturer negligence (and even this is a dubious theory, given that recovery would be for <a href="https://en.m.wikipedia.org/wiki/Pure_economic_loss" rel="nofollow noreferrer">pure economic loss</a>), there is probably no legal theory that would allow recovery of any loss of resale value.</p>
<p>I am assuming that the promise to replace/repair the engine if it fails is part of the contract of sale. <a href="https://consumer.ftc.gov/articles/auto-warranties-service-contracts" rel="nofollow noreferrer">This is typical for a warranty that the manufacturer will repair certain failures</a>.</p>
<p>Assuming the manufacturer fulfils what it agreed to in the warranty, then the buyer is getting exactly what they contracted for and there is no contractual theory that would support any further recovery: there is no breach.</p>
<p>The buyer bought a car that included a warranty to repair. I cannot imagine that they bought a car that included a promise that it would not fail.</p>
