N.M. Admin. Code § 3.4.23.14

Current through Register Vol. 35, No. 21, November 5, 2024

Section 3.4.23.14 - WARRANTIES AND LEASES

A. Clean car tax credit warranties that the department may accept for previously owned motor vehicles shall be provided by the dealer and shall cover a minimum of one-year extended warranty against defects and repairs.

(1) Auto warranties accepted by the department must cover both the failed part and the labor to replace or repair it. The warranty types that the department may accept include the following:

(a) an auto warranty that covers repairs for parts that fail due to defects or errors in how a vehicle was built;

(b) a bumper-to-bumper warranty, which may also be called a comprehensive or limited warranty, that covers nearly all a vehicle's systems;

(c) a certified pre-owned warranty that carries the balance of the original bumper-to-bumper and powertrain warranties;

(d) an extended warranty that covers a vehicle's problems after the original new vehicle warranty expires and which covers mechanical breakdowns and electrical failures;

(e) extended length warranty;

(f) factory warranty;

(g) new vehicle warranty;

(h) manufacturer warranty;

(i) any other warranty deemed eligible by the department.

(2) The warranty types that the department will not accept include the following:

(a) aftermarket accessories warranty;

(b) a basic used warranty for a car "as is," or for a period less than a year;

(c) corrosion and perforation warranties;

(d) emissions system warranty;

(e) hybrid and electric car battery warranties. The department will not accept a warranty covering only the high-voltage batteries installed in hybrids, plug-in hybrids and battery-electric vehicles;

(f) implied warranty;

(g) powertrain warranty. The department will not accept a warranty covering only the engine, transmission, and drivetrain components, even if it includes coverage of components in drive systems for electric vehicles and gas-electric hybrids;

(h) replacement parts warranty;

(i) restraint system warranty. The department will not accept a warranty covering only a vehicle's seat belts or restraint stem;

(j) roadside assistance warranty;

(k) tire warranty;

(l) any other warranty deemed ineligible by the department.

B. The following new lease agreement types that the department will accept include the following:

(1) closed-end lease where the applicant agrees to lease the car from a licensed dealer for a set term and certain mileage limits, and then return it at the end of the leasing period;

(2) open-end lease where the terms are flexible, and the applicant takes the depreciation risk of the vehicle;

(3) single payment lease where the applicant pays the entire amount for the lease upfront;

(4) long-term lease;

(5) used vehicle lease if it is longer than three years;

(6) any other type of lease deemed eligible by the department;

C. The lease agreement types that the department will not accept include the following:

(1) sub-vented or subsidized lease. The department will not accept a lease type that is offered with special incentives to make it more enticing to consumers. These incentives can include lower base interest rates, higher residual values, and manufacturer discounts.

(2) A lease shorter than three years.

N.M. Admin. Code § 3.4.23.14

Adopted by New Mexico Register, Volume XXXV, Issue 18, September 24, 2024, eff. 9/24/2024