Two pervasive myths of hacking or modding your car are that
Modifying your car automatically cancels your warranty.
Modifying your car is illegal
Just as these blanket statements cannot be relied on as gospel — after all,
changing the windshield wiper blades can’t cause the transmission to break —
neither can you assume that both the law and your warranty allow you to do
whatever you want to your car.
The purpose of this section is not to provide a legal dissertation, but to offer
an introduction to the regulatory bodies and commercial entities that have an
interest in what you do to make your car different from the way it was when
you drove it back from the dealership with that new-car smell still wafting
through the cabin.
Federal regulations
Broadly speaking, two regulatory agencies oversee the automotive industry
on a federal level:
EPA (Environmental Protection Agency)
DOT (Department of Transportation)
The regulatory power of the EPA and DOT is primarily concerned with setting
and enforcing the regulations dealing with the type of safety and emission
equipment that need to be present in cars in order for them to be sold in
the United States. If you are the CEO of an automobile manufacturer or parts
supplier, plan on looking closely at the guidelines set by these agencies.
As a private consumer, with few exceptions (like federal prohibitions against
running leaded race gas on public roadways), you are unlikely to have direct
contact with the federal government.
There is one instance in which the federal government takes a very active
interest in your private vehicle, and this is where individuals either themselves,
or through a broker, bring gray market cars into the U.S. for road use. A gray
market car may be a model that was never officially sold in the U.S., but has
become desirable enough to compel people to either skirt the law in order to
bring them in, or to go through an expensive and time-consuming certification
process involving crash testing and retrofitting emissions and safety equip-
ment. The Porsche 959 and Nissan Skyline GT-R are examples of cars that were
both so coveted by enthusiasts that companies and individuals certified some
of these for legitimate gray market use. Other cars that have been available as
variants outside of the U.S. (for example, high-spec and special performance
editions) needed changes made to their equipment, such as glass, bumpers,
turn signals, lighting, emissions equipment, and safety equipment, in order
to be brought up to the same standards as their U.S. counterparts. If you are
interested in either importing a gray market car or purchasing one that has
already been brought in as a gray market import, have an attorney check to
ensure that everything that needs to have been addressed to make the car
legal for road use has been covered, including the accuracy of any and all
documents submitted to both state and federal regulatory bodies. Fraud and
perjury are serious crimes, and people have ended up with stiff fines and even
jail time (and the cars were crushed) for gray market car deals gone bad.
Local regulations
As an individual, you are most likely to be concerned with regulatory agencies
at the state and local level. While the federal government has many vehicle
standards, when the car is on the road, the regulations are enforced almost
exclusively by state or local government. Drivers in the U.S. encounter state-
level involvement of vehicle registrations and/or safety inspections. Each state
sets its own standards on how closely, and how often, they will scrutinize a car
before issuing a license plate for the car or reviewing the vehicle’s registration.
These regulations may be enforced differently depending on which county
your car is registered in within the state. In California, for example, some coun-
ties require emissions testing every two years, while others require only that
the vehicle pass emissions when it is first registered and do not require fur-
ther testing, unless the car has been cited by law enforcement as a suspected
polluter.
State regulatory agencies
Before embarking on your modification regimen, it can be helpful to familiarize
yourself with your local vehicle code. As the old saying goes, forewarned is
forearmed.
Motor vehicle code
The state regulatory agencies generally set forth their requirements in the
motor vehicle code for each state. Many people are familiar with the VC initials
followed by a series of numbers on the ticket for a traffic citation (for example,
exceeding the posted speed limit). The same book of codes that dictates how
fast you may drive on the highways of your state, or whether you can make a
right turn against a red light, also lists requirements that vehicles must meet
within that state’s jurisdiction. This includes everything from how low or high
your car may sit, how loud the exhaust may be, to what type of lighting is or
isn’t acceptable. Because driving on public roadways is “a privilege, not a
right,” these are the concessions that you as a driver must agree to abide by
in order to exercise your privilege to use your car on public roadways.
Before beginning any modifications to your car, including those seemingly
noble and uncontroversial modifications designed to improve its safety,
acquaint yourself with the vehicle code regulations in your state:
Your local Department of Motor Vehicles (DMV) or Bureau of Motor
Vehicles (BMV) can steer you toward listings of applicable codes.
Many public libraries keep current vehicle codes on file.
Private roads (including the local racetrack and drag strip) are generally
exempt from vehicle code regulations. These regulations are not in force at
those venues.
Because vehicle code regulations vary greatly from state to state, this book
does not assume that the particular modifications it describes are legal in
your jurisdiction. When in doubt about the legality of the modifications you
are considering (this includes the fuzzy dice hanging from your mirror —
seriously), check your local vehicle code. Also note that assurances from the
manufacturer that the parts are legal for emissions in all 50 states, for example,
does not mean that they are legal everywhere for noise. Similarly, just because
you bought your parts from a local car dealer for your brand of car and had
them installed there does not mean that the parts meet vehicle code require-
ments in your jurisdiction. Note that the ARB (Air Resources Board) regula-
tions concerning emissions may be listed separately and are also subject to
enforcement in your home state.
Air pollution
The state corollary for the EPA is your local ARB. The primary concern of the
ARB is to regulate the levels and types of allowable automobile emissions in
your state. Some areas require stringent testing and monitoring of vehicle emis-
sions, others require little or no such testing. These restrictions can be limited
to problem metropolitan areas or may be statewide. Before tampering with
emissions equipment, check the requirements of your local ARB.
Local ordinances
Local ordinances at the county or city level (even your homeowners associa-
tion may have ordinances) may set specific requirements.
Generally, if you have met the requirements of the state vehicle code, then you
are operating within the letter of the law. However, if your car with wild graph-
ics and flaming hot pink paint is considered an eyesore by your neighbors,
expect that there will be repercussions for parking it prominently outside.
If the neighbors complain about tacky pink flamingo lawn ornaments, they
will most certainly complain about a tacky pink car
Warranty requirements
When it comes to new car warranties, automotive owners and enthusiasts have
a very important lobbying body on their side, namely SEMA (the Specialty
Equipment Market Association). SEMA represents the aftermarket manufac-
turers, wholesalers, retailers, and distributors in North America. Because
this association of aftermarket parts suppliers has a vested interest in the
continued sale of aftermarket parts, it has helped to keep new car manufac-
turers in check by successfully lobbying for legislation that prevents new car
dealership service providers from denying warranty coverage, for example
in a seized motor, because you chose to use those snazzy aftermarket carbon
fiber windshield wipers instead of the OEM (Original Equipment Manufacturer)
parts sold through their parts/service departments.
Magnuson-Moss Warranty Act
The relevant legislation here, the Magnuson-Moss Warranty - Federal Trade
Commission Improvement Act of 1975, protects consumers from being wrong-
fully denied warranty coverage by new car dealers.
The Magnuson-Moss Warranty Act states, in part, in Title 15, United States
Code, Section 2302, subdivision (c):
No warrantor of a consumer product may condition his written or implied
warranty of such product on the consumer’s using, in connection with such
product, any article or service (other than article or service provided with-
out charge under the terms of the warranty) which is identified by brand,
trade, or corporate name; except that the prohibition of this subsection
may be waived by the [Federal Trade] Commission if —
(1) the warrantor satisfies the Commission that the warranted product
will function properly only if the article or service so identified is used in
connection with the warranted product, and
(2) the Commission finds that such a waiver is in the public interest. The
Commission shall identify in the Federal Register, and permit public com-
ment on, all applications for waiver of the prohibition of this subsection,
and shall publish in the Federal Register its disposition of any such appli-
cation, including the reasons therefore.
Under this federal statute, a manufacturer who issues a warranty on your
motor vehicle is prohibited from requiring you to use a service or maintenance
item, unless such item is provided, free of charge, under your warranty or
unless the Federal Trade Commission (FTC) waives this prohibition against
the manufacturer.
Further, under the act, aftermarket equipment that improves performance does
not automatically void a vehicle manufacturer’s original warranty, unless the
warranty clearly states the addition of aftermarket equipment automatically
voids your vehicle’s warranty, or if it can be proven that the aftermarket device
is the direct cause of the failure.
Specifically, the rules and regulations adopted by the FTC to govern the
interpretation and enforcement of the Magnuson-Moss Warranty Act are set
forth in the Code of Federal Regulations, Title 16 - Commercial Practices,
Chapter I - Federal Trade Commission, Subchapter G - Rules, Regulations,
Statements and Interpretations under the Magnuson-Moss Warranty Act,
Part 700 - Interpretations under the Magnuson-Moss Warranty Act. Contained
within these rules and regulations is Section 700.10, which states:
No warrantor may condition the continued validity of a warranty on the
use of only authorized repair service and/or authorized replacement parts
for non-warranty service and maintenance. For example, provisions such
as, “This warranty is void if service is performed by anyone other than
an authorized ‘ABC’ dealer and all replacement parts must be genuine
‘ABC’ parts,” and the like, are prohibited where the service or parts
are not covered by the warranty. These provisions violate the Act in
two ways. First, they violate the section 102(c) ban against tying arrange-
ments. Second, such provisions are deceptive under section 110 of the
Act, because a warrantor cannot, as a matter of law, avoid liability under
a written warranty where a defect is unrelated to the use by a consumer of
“unauthorized” articles or service. This does not preclude a warrantor
from expressly excluding liability for defects or damage caused by such
“unauthorized” articles or service; nor does it preclude the warrantor
from denying liability where the warrantor can demonstrate that the
defect or damage was so caused.
Under the Magnuson-Moss Act, a dealer must prove, not just vocalize, that
aftermarket equipment caused the need for repairs before it can deny warranty
coverage. If the dealer cannot prove such a claim — or it proffers a questionable
explanation — it is your legal right to demand compliance with the warranty.
The Federal Trade Commission administers the Magnuson-Moss Act and
monitors compliance with warranty law.
That being said, if you choose to modify your car, and suddenly the fancy
new electronic control boxes that you added to your car make it run rough,
not start when cold, or buck like a bronco, the dealer can and will charge a
diagnostic fee to find out what is wrong with your car. If it turns out that your
modifications are the cause of the problem, the dealer has every right not only
to charge you for the diagnosis and repair, but to also void the portion of the
warranty that has been compromised by the use of those aftermarket parts.
Likewise, a dealer may refuse to service your car if it is adorned with after-
market parts to the extent that its technicians cannot reasonably be expected
to diagnose what is wrong with your car. As an example, all cars manufactured
after 1994 are equipped with OBDII (On Board Diagnostics II) ports that dealers
use to read engine diagnostic codes for everything from an engine vacuum leak
to a malfunctioning emissions system. If your chosen modification has compro-
mised the dealer service center’s ability to scan for these codes (aftermarket
ECUs generally do not support OBDII), then there is a strong probability that
the dealer service center will
Deny warranty coverage
Refuse to service the car
Note with your factory field representative for your region/district that
your car has been “modified”
Your car’s manufacturer notes are your car’s “permanent record.” Above all
else, avoid compromising these notes. This is nearly always connected with
your vehicles’ VIN (Vehicle Identification Number) and will
Ensure that your car will not have its warranty honored at any dealer
service center in your area.
Dramatically reduce the resale and/or trade-in value of your car.
Event participation
Some recent controversy surrounds car manufacturers’ monitoring of SCCA
(Sports Car Club of America) and NHRA (National Hot Rod Association) events
and noting license plates and VINs as a justification for denying warranty cov-
erage and either voiding out the warranty, or placing it on “restricted” status.
The legality of these tactics by automobile manufacturers, in particular where
the car is marketed with SCCA membership or literature or advertised in race-
modified form, is questionable. To protect yourself, be aware of this trend and
take the appropriate precautions in listing critical identifying information when
participating in regional autocrosses, tracks days, and drag races.
If you believe that your warranty has been wrongly canceled or placed on
restriction either because of modifications made to your car, or because of
your membership in, affiliation with, or participating in sanctioned club
events or gatherings, consult with an attorney and use SEMA as a resource
to fight the denial of coverage.
TIPS
When it comes to legality and warranty concerns, I advise you to neither pro-
ceed based solely on slick advertising and marketing by parts manufacturers
and resellers, nor allow yourself to be cowed into paranoia. Information is
power, and knowing your rights and obligations is the foundation to any
thoughtfully modified car.
