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    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
     
    #1

    Feb 2, 2013, 11:43 AM
    Goodwill Agreement
    Well, let me write this all out all over again since I just did it and it disappeared when I went to submit it...

    Back in December I sold a high mileage car for a good price to a local lady. As I do with most of what I sell, I included a 90 day/4,500 mile powertrain service contract through a SC company that specializes in used cars. Unfortunately, 5 weeks after she got the car, it developed an engine noise. Long story short, it turned out that the crankshaft bearings were bad and it was easier and cheaper to replace the engine with a used one. Anyway, the SC company isn't all that they promised they were when they sold themselves to me originally. There was much that was hidden this and hidden that and no coverage on this or that and they basically didn't cover a whole lot of the work.

    Although I was no longer legally responsible for this car at this point, my wife and I decided to pay the repair costs that the SC company didn't cover. In short, we lost a ton of money on this car trying to make the customer happy and to make things right.

    Some dealer friends of mine suggested that I write out a brief good will agreement so that the customer understands that the repair work that we paid for does not indicate that we are now extending some sort of warranty on the car at this point, and to cover ourselves in case she decides down the road somewhere that we need to be responsible for something else. She seems to be a generally agreeable type of person so I doubt this will happen but this is business and I want to be covered in case.

    I wrote up (to the best of my ability) what I think should cover me but I want to hear some opinions on if I covered what I need or should I change something on it?

    ***********************************************
    2002 Chevrolet Cavalier
    VIN# Some Numbers Go Here

    Owner- Dealer-
    Some Customer Odinn7's Auto Sales
    Some Address Some Address
    Some State Some State


    Above vehicle was sold to Some Customer on December 18, 2012 at 169,780 miles with a CHEESY COMPANY powertrain service contract covering 90 days or 4,500 miles included in the sale price. Engine failure was reported and only partially covered by the service contract in January, 2013.

    Under a good will agreement, Odinn7's Auto Sales and the two principal owners, Mr odinn7 and Mrs odinn7, agreed that our company would cover the cost of repairs for, and the used replacement engine at our expense, minus the $100 deductible that is required by CHEESY COMPANY. Some Customer paid the $100 deductible and Odinn7's Auto Sales covered the balance of the repair work (not covered by CHEESY COMPANY) needed in this particular case of engine failure.

    As stated, this repair work was paid for by Odinn7's Auto Sales as a good will gesture and should not be construed in any way as an extended or implied warranty nor a statement of guarantee on either the replacement engine, the mechanical work involved, or any other part of the vehicle.

    Odinn7's Auto Sales
    Principal:______________________________Date:_____ _______
    Principal:______________________________Date:_____ _______

    Vehicle Owner:______________________________Date:_________ ___
    smearcase's Avatar
    smearcase Posts: 2,392, Reputation: 316
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    #2

    Feb 2, 2013, 12:08 PM
    Trying to understand how the service contract with "Cheesy" that you provided to the lady. Actually is supposed to work. Does the customer receive a service contract that the customer is supposed to rely on if there is a problem in the 90 day period?

    Did the customer get a look at the provisions of the service contract before making the purchase? Maybe the way the service contract was supposed to work and what was explained to the customer before the sale should be expanded on in the first part of your write-up or maybe I am too dense to understand the details of the arrangement.
    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
     
    #3

    Feb 2, 2013, 12:16 PM
    The service contract is just an extended type of "warranty" that is sold by a third party and is supposed to cover major problems for the customer in the event of mechanical failure on certain parts of the car... in this case, failure of the powertrain components.

    I pay for it and she signs the contract then Cheesy is supposed to cover her. As it turns out, they are not as good of a company as they had led me to believe and didn't cover very much of the job at all even though it was a covered component that failed.

    At any rate, the service contract itself isn't a big part of what I'm asking here. I paid, out of pocket, for what the SC did not cover and my question is related to my Goodwill Agreement and if that will cover me from this repair that I paid for... for making it legally known that after this repair, I am no longer responsible for the car... which I was not to begin with. As I said, I paid for this to make the customer happy.
    smearcase's Avatar
    smearcase Posts: 2,392, Reputation: 316
    Ultra Member
     
    #4

    Feb 2, 2013, 12:48 PM
    If she already knows all of what you explained in your last post, she should be happy to sign the good will agreement.
    I would add parentheses after the word contract on line one---
    ("an agreement between Some Customer and Cheesy")--- to make it clear that there was no contract between you and Cheesy.
    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
     
    #5

    Feb 2, 2013, 02:00 PM
    I have talked with her and she has no problem with signing it on Monday when she gets the car back from the shop.

    I just want myself and my business covered after I went out of my way to try and help her out. I was told by some other dealers that if I don't have such an agreement, it is possible that the customer could construe this act of goodwill as meaning there is some sort of guarantee on this car beyond what she already has. Or that she could possibly turn it around at a later time and claim in a legal sense that I owe her more.

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