IBA Compliance Connection

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A new Illinois law requires used vehicle contracts to provide a 15 day/500 mile limited powertrain warranty of merchantability. Does that apply to used powersports or motorcycles?

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admin

The new powertrain warranty requirements apply to used motorcycles, as well as used powersport vehicles that have a certificate of title, such an all-terrain vehicles (ATVs).

We confirmed with the Illinois Attorney General’s office that the powertrain warranty requirements apply to any used “vehicle,” as defined in the Illinois Vehicle Code. A vehicle is any device that may be transported on a highway or that requires a certificate of title. Motorcycles, ATVs, and “low-speed vehicles” all require certificates of title, among other vehicle types. Consequently, the powertrain warranty requirements will apply to those used vehicles and any other powersport vehicles that require a certificate of title from the Illinois Secretary of State.

For resources related to our guidance, please see:

  • Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2L(a) (“Any retail sale of a used motor vehicle made after the effective date of this amendatory Act of the 99th General Assembly to a consumer by a licensed vehicle dealer within the meaning of Chapter 5 of the Illinois Vehicle Code or by an auction company at an auction that is open to the general public is made subject to this Section.”)

  • Illinois Vehicle Code, 625 ILCS 5/1-217 (“Vehicle. Every device, in, upon or by which any person or property is or may be transported or drawn upon a highway or requiring a certificate of title under Section 3-101(d) of this Code, except devices moved by human power, devices used exclusively upon stationary rails or tracks and snowmobiles . . . .”)

  • Illinois Vehicle Code, 625 ILCS 5/3-101(b) (“Every owner of a motorcycle or motor driven cycle purchased new on and after January 1, 1980 shall make application to the Secretary of State for a certificate of title. . . .”)

  • Illinois Vehicle Code, 625 ILCS 5/3-101(d) (“Every owner of an all-terrain vehicle or off-highway motorcycle purchased on or after January 1, 1998 shall make application to the Secretary of State for a certificate of title.”)

  • Illinois Vehicle Code, 625 ILCS 5/3-101(e) (“Every owner of a low-speed vehicle manufactured after January 1, 2010 shall make application to the Secretary of State for a certificate of title.”)