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School is almost out for the summer and high schoolers with a driver’s license are ready to be on the open road!
If a young driver comes to your dealership interested in a vehicle, it is important to remember that a contract with a minor is not enforceable. A vehicle contract with an individual under the age of 18 can be rendered null and void. This could lead to a vehicle return for any reason and a requirement for reimbursement. (While legally emancipated minors may be able to enter into an enforceable contract, it can be a tricky situation.)
Purchase. Dealers are advised to require a responsible adult to become the purchaser or co-purchaser of a vehicle. An adult, usually a parent/guardian, should sign the buyer’s order, lease or rental agreement, as well as financing documents. This policy should apply if the vehicle is paid fully in cash, or financed.
Warranty. Minors are often interested in your “budget” lot and purchase lower-cost, used vehicles. It is highly encouraged that the dealer explain the warranty, if any, and request an adult co-purchaser acknowledge all aspects of the sale in writing.
Maintenance/Repair. This same reminder extends to the service department. A minor authorizing expensive repairs could attempt to void a service bill based on the fact that he or she is under the age of 18. Make certain that an adult is jointly or individually responsible for vehicle repairs.
If you have questions please call MADA at (800) 292-1923. |
