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Illinois Warranty Law – What Dealers Should Know

Thursday, February 29, 2024 3:07 PM | Anonymous member (Administrator)

[From the desk of CATA General Counsel Dennis O'Keefe] Section 6 (b) of the Illinois Warranty Law (815 ILCS 710/6) contains two provisions that dealers should be aware of. The first provision states:

There shall be no reduction in payments due to pre-established market norms or market averages. Manufacturers are prohibited from establishing restrictions or limitations of customer repair frequency due to failure rate indexes or national failure averages.

The second provision states:

If a manufacturer imposes a recall or stop sale on any new vehicle in a dealer’s inventory that prevents the sale of the vehicle, the manufacturer shall compensate the dealer for any interest and storage until the vehicle is repaired and made ready for sale.

With regard to the second provision, each OEM might have a different method for dealers to recoup interest and storage. However, should any OEM take a position that is contrary to either of these provisions, or ignore either provision, dealers should make the OEM aware of the statutory language quoted above.

Chicago Automobile Trade Association
18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181 
(630) 495-2282


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