Fiscal cliff challenges could affect car warranties

January 11, 2013 12:00 AM

Congress signed a fiscal cliff bill into law a short time ago, and because of this new legislation many car owners could be seeing major changes coming to the auto industry. In particular, the emphasis on the use of E15 ethanol as a main fuel source could have the compound reaching more drivers than ever before. While E15 and its corresponding tax breaks may be a welcome relief to some, the fuel could actually cause damage to engines, and as a result manufacturers could void car warranties.

"This has really percolated up as a subject, and we really believe there just needs to be more research on how E15 affects engines and components," John Nielson, director of auto repair and engineering for AAA, told AOL Autos. "With many carmakers saying they won't honor warranties, there is a choice consumers have to make."

According to the news source, E15 may accelerate wear on engines and other car parts, and several automakers are taking precautions to avoid dealing with the subsequent car repair that would come about as a result of its use. Brands like BMW, Chrysler, Nissan, Toyota and Volkswagen have already stated they will not cover problems related to the use of E15, and more companies are expected to announce that they will void warranty coverage depending on the issue at hand. 

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