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Jeep Extended Warranty Sparks New Jersey Lawsuit

What recourse do I have if I buy a car warranty that can’t be used?

Pennsylvania and New Jersey breach of warranty attorneys are watching with interest an extended warranty lawsuit filed in the U.S. District Court for the District of New Jersey against WS Aftermarket Services Corporation and Warranty Solutions Management Corporation.

The lawsuit, brought by a Jeep Grand Cherokee owner, alleges that an extended warranty she paid over $2,500 for was “useless” and, because she couldn’t use it, she was stuck paying “thousands and thousands of dollars for repairs she thought would be covered”.

According to the lawsuit, the plaintiff bought the preowned 2014 Grand Cherokee SRT from EMG Auto Sales Inc. (“EMG”) in Avenel, New Jersey when it had 20,000 miles on the odometer and it was still under the manufacturer’s original powertrain warranty. On the day she bought it, she was allegedly told by an EMG rep that an “AWS Aftermarket Service Corporation service contract could be purchased and administered by Warranty Solutions Management Corporation” when she asked if she could purchase a third-party extended warranty for the vehicle. So, she agreed to and did purchase the extended warranty.

Seven months later, when the vehicle was presented for service after a warning light illuminated, a service administrator at her local Jeep dealership allegedly told her son “the manufacturer’s warranty was no good because the Grand Cherokee SRT was manufactured to be registered in Canada, not the U.S.” and the extended warranty company allegedly denied warranty coverage for the same reason and pointed the owners to EMG to seek a refund.

But that same month the Jeep reportedly seized while driving on the New Jersey Turnpike—which was the start of what the plaintiff alleges is a “fortune” she has paid and/or is now facing in uncovered necessary repair bills for the Jeep’s defects. The exorbitant charges are for repairs allegedly needed to keep the Jeep on the road including over $20,000 for an engine replacement, over $8,000 for a transmission replacement, over $3,000 for exhaust system and suspension repairs, and over $4,700 for carbon fiber replacements.

If you feel you’ve been the victim of dealer fraud, or might have a breach of warranty claim, and live in Pennsylvania or New Jersey, Timothy Abeel & Associates can help. Contact us today for a free consultation.

In addition to dealer fraud and breach of warranty claims, we handle lemon law cases for those whose new or relatively new vehicles are constantly in the shop for the same stubborn repair. Depending on the nature of your problem, you may be entitled to a full refund of your down payment, trade-in, monthly payments and taxes, or a brand-new car or a cash settlement.

Experiencing Similar Issues?

If your car was manufactured between 2019 and 2024 we may be able to help. Contact us for more information.