Buying a RV in a Business Name is a Big No-No
Buying a new RV in a business name is tempting. Buyers may do this to either avoid sales taxes or obtain some other tax benefit. But doing this comes with a nasty side effect – it will likely void the warranty!
The RV manufacturers are intentionally limiting your legal rights in the small print of the warranty, and their goal is to make it nearly impossible for you to sue them when they fail to live up to their warranty.
- They try to limit what they will cover.
- They try to limit how long you have to sue for a breach of warranty.
- They try to limit how much you can ask for as compensation.
A new trend is for the RV manufacturers to try to completely void the warranty if you purchase, title, or use an RV for business or commercial purposes.
Many of the RV warranties state that an RV that is purchased, titled, or registered in a business name is excluded from warranty coverage. Other warranties only exclude RVs used for business or commercial purposes.
While it seems like it may be ok to purchase an RV in a business name if you don’t actually use it for business, you still need to be on guard because some warranties state that any RV that is purchased or titled in a business name is presumed to be used for business purposes. Other warranties state that the RV is presumed to be used for business purposes if any tax form claims a business tax benefit.
The exact wording of each warranty varies so you will need to read the RV’s warranty carefully before you decide to purchase an RV in a business name. Look at the “Excluded from Coverage” or “What Is Not Covered” section of the warranty for a better understanding of whether your warranty would be void if you purchased the RV in a business name.
If you have already purchased or titled your RV in a business name and you are having problems with your RV, contact Burdge Law Office to determine your options.
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