WARRANTY POLICY MANUAL

W ARRANTY P OLICY M ANUAL WARRANTY POLICY MANUAL

TABLE OF CONTENTS FOREWORD VEHICLE HANDLING & STORAGE... SECTION 1 ASSEMBLY & PRE-DELIVERY SERVICE... SECTION 2 VEHICLE REGISTRATION... SECTION 3 WARRANTY POLICIES... SECTION 4 WARRANTY REPAIR GUIDELINES... SECTION 5 VEHICLE OWNER RESPONSIBILITIES... SECTION 6 WARRANTY SERVICE PROCEDURES... SECTION 7 WARRANTY REPAIR STANDARDS... SECTION 8 WARRANTY PARTS... SECTION 9 WARRANTY REIMBURSEMENT... SECTION 10 OWNERSHIP TRANSFER... SECTION 11 ODOMETER CHANGE... SECTION 12 RECALLS OR MODIFICATIONS... SECTION 13 DEMO-VEHICLES... SECTION 14 CUSTOMER SERVICE... SECTION 15 CONSUMER PROTECTION LAWS... SECTION 16 CONTACTING KYMCO USA... SECTION 17 GLOSSARY WARRANTY POLICY MANUAL TABLE OF CONTENTS

FOREWORD KYMCO USA is dedicated to customer, dealer, and product support and has developed this manual to provide valuable information to your dealership so you and your staff can properly administer KYMCO USA s warranty policies and programs. Proper warranty repairs and quality service will help you develop lasting relationships with your customers that will enhance your dealer image and foster future business. The goal of this manual is to support those ideals, and to that end, every effort has been made to ensure this manual is as accurate and complete as possible. KYMCO USA recommends that every employee of your KYMCO dealership read this manual and become familiar with the warranty policies and procedures contained within. As KYMCO USA changes and improves its warranty and product support, there may be changes to warranty-related procedures, and this manual may be upgraded by way of bulletins or supplemental pages sent to your dealership. Please pay close attention to any service correspondence you receive from KYMCO USA so that you and your staff are apprised of the most current information available. WARRANTY POLICY MANUAL FOREWARD \ i

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Route this information to the following dealership personnel: Dealer Owner General Manager Sales Manager Sales Staff F & I Parts Manager Parts Staff Accessories Service Manager Service Technicians PDI Technicians Warranty 8 / 8 TECHNICAL INFORMATION

ASSEMBLY & PRE-DELIVERY SERVICE SECTION 2 Proper assembly and servicing of KYMCO products is necessary to guarantee customer satisfaction and safety. A mistake or omission during assembly of a new vehicle can result in improper operation, damage to the vehicle, or injury to the rider. It is mandatory that every new KYMCO vehicle delivered to a customer by your dealership be assembled and serviced per the instructions in KYMCO USA Assembly and Pre-Delivery bulletins, and that the appropriate Assembly & Pre-Delivery Checklist form be started and placed in your dealership s sales and service files before any new KYMCO product is displayed for sale. Once sold, the remaining fields in the Assembly & Pre-Delivery Checklist form must be completed. This form should be used as a guide when providing operation, service and warranty education to the new vehicle s owner. 02.01 Assembly and Pre-Delivery Service Dealer Requirement Each KYMCO product sold by your dealership must be assembled and serviced following the instructions and procedures as set forth in the appropriate Assembly and Pre-Delivery Service Bulletins. No vehicle may be sold in the crate (except to another authorized KYMCO USA dealer for resale purposes). As the selling dealer, you are directly responsible for the proper assembly and pre-delivery service of the KYMCO products that you sell. Expenses arising from improper assembly or pre-delivery service are the sole responsibility of your dealership. 02.02 Set-up Vendors If your dealership uses an outside vendor (aka Set-up Service ) to assemble or service new KYMCO vehicles for sale, you, as the selling dealer, are still ultimately responsible for proper assembly and pre-delivery service. An Assembly & Pre-Delivery Checklist form must be used for each sale, regardless of the methods or services employed by your dealership to prepare the unit. Note: KYMCO USA requires prior notification before you commission a vendor to provide your dealership vehicle assembly or pre-delivery service. You must notify your KYMCO USA Sales Representative prior to using such a vendor. KYMCO USA will then notify you if the vendor is acceptable, or if changes are required to provide proper vehicle assembly or preparation. You, or your storage vendor must provide access during normal business hours to a KYMCO USA or flooring-service representative for crated or assembled vehicle inspection at any assembly facility you may use. 02.03 Assembly & Pre-Delivery Service-related Repair Order Use As your dealership s service department assembles and prepares new KYMCO vehicles for showroom display or delivery to a customer, they must also use Repair Orders in conjunction with Assembly & Pre-Delivery Checklist forms (see section 02.04) to document their vehicle preparation and delivery efforts. Repair orders and Assembly & Pre-Delivery Checklist forms are required for the following activities: A Repair Order is required to document when the vehicle is removed and assembled from its shipping crate. The original completed Repair Order must be placed in your Service Department s history files, and a copy of the Repair Order and the Assembly & Pre-Delivery Checklist form must be placed in the Sales Deal Jacket for the vehicle. Note: If you employ an outside service to assemble vehicles, you still must prepare a Repair Order that document when the assembled vehicle was delivered to your dealership. WARANTY POLICY MANUAL SECTION 2/1

ASSEMBLY & PRE-DELIVERY SERVICE SECTION 2 A Repair Order is required to document when the unsold, assembled vehicle is serviced. You may use the same Repair Order as the assembly-related Repair Order if the assembly and service occur at the same time. The original, completed Repair Order must be placed in your Service Department s history files, and a copy of the original Repair Order and a copy the Assembly & Pre-Delivery Checklist form must be placed in the Sales Deal Jacket for the vehicle. Note: The customer will receive a copy of the Assembly & Pre-Delivery Checklist form during the new vehicle delivery and education process. A Repair Order is required to document ANY warranty-related service on an unsold vehicle. It should be documented on a separate Repair Order from the assembly or pre-delivery servicerelated Repair Order. The original completed Repair Order must be placed in your Service Department s history files with a printout of your submitted Warranty Claim. Note: In certain situations KYMCO USA may request documentation and/or photographs to verify that claimed warranty repairs were not the result of improper vehicle assembly or preparation. Without evidence that the problem was not caused by improper assembly, improper storage or transportation, the Warranty Claim may be declined. If you employ a vehicle assembly or preparation vendor, it will be your dealership s responsibility to obtain reimbursement for the repair expenses from the vendor. It is also your dealership s responsibility to inform KYMCO USA (though your KYMCO USA Sales Representative) that a vehicle assembly vendor is being used. Note: See Section 7 of this manual for more information on Repair Order requirements. 02.04 Assembly & Pre-Delivery Checklist Form Your dealership must complete an Assembly & Pre-Delivery Checklist Form for every KYMCO vehicle you sell. There are separate Assembly & Pre-Delivery Checklist Forms for two-wheel KYMCO vehicles (motorcycles and scooters) and for four-wheel, off road vehicles (ATVs and UTVs). Regardless of the vehicle and the type of form used, a copy of the form must be placed in your dealership s sales files. The KYMCO USA Assembly & Pre-Delivery Checklist Forms have been developed for easy use, and to aid your dealership when you undertake the important steps to properly prepare and deliver a new KYMCO motorcycle, scooter, ATV or UTV to a customer. Proper vehicle assembly and pre-delivery service is vital to rider safety, vehicle reliability, and to your customers' satisfaction. These forms must be filled out by your dealership personnel. One copy must be sent to KYMCO USA, another copy is to be retained in your dealership s service history files and a third copy is to be provided to your customer with the rest of his or her new vehicle documentation. The items on the checklists apply to most KYMCO products. There may be exceptions to the items listed, so refer to the vehicle s specific Assembly & Pre-Delivery instructions for these exceptions. Check off items that apply to the vehicle and cross off non-applicable items. The other copy should be provided to the customer with the vehicle s Limited Warranty Policy. WARRANTY POLICY MANUAL SECTION 2 /2

ASSEMBLY & PRE-DELIVERY SERVICE SECTION 2 Motorcycle & Scooter Assembly & Pre-Delivery Checklist [PDI-2W-0108] WARANTY POLICY MANUAL SECTION 2/3

ASSEMBLY & PRE-DELIVERY SERVICE SECTION 2 Off Road ATV Assembly & Pre-Delivery Checklist [PDI-4W-0108] WARRANTY POLICY MANUAL SECTION 2 /4

ASSEMBLY & PRE-DELIVERY SERVICE SECTION 2 02.05 Warranty Consideration and Product Liability KYMCO USA will not accept responsibility for any problem caused by improper or incomplete assembly, or pre-delivery service. All of the required forms must be filled out completely and properly or it may be presumed that the vehicle was not assembled and serviced properly. Any failures of a KYMCO product due to incomplete or incorrect assembly or pre-delivery service will be deemed to be the selling dealer s responsibility, and a Debit may be applied against the selling dealer s account for any repair required to resolve any deficiency. 02.06 Customer Education Providing thorough new vehicle education to KYMCO customers is necessary for their safety and satisfaction with the product. This education is an essential first step in developing the customer loyalty that will ensure future sales and service success. KYMCO USA strongly suggests that new vehicle delivery and customer education be provided by your dealership s Service Manager or other employee who fully understands the vehicle s operation, warranty coverage and service needs. This educator must also be capable of describing the value of the KYMCO Extended Protection Plan. He or she should also be able to explain the importance of returning the vehicle for initial service so it will achieve its best performance and provide you future service business opportunities. WARRANTY POLICY MANUAL SECTION 2 /5

VEHICLE REGISTRATION SECTION 3 KYMCO product Vehicle Registration is an essential business task of your dealership. It is the method by which KYMCO USA obtains vital information on each purchaser of a KYMCO vehicle and when that vehicle was purchased, so appropriate warranty coverage can commence. Federal regulations require KYMCO USA to maintain such records, and this information may be necessary to implement a customer satisfaction program, a product modification campaign, or a Safety Recall Campaign, should any such event arise. KYMCO USA also uses Vehicle Registration data to determine future product allocation to your dealership. 03.01 Online Vehicle Registration Submission Vehicle Sales Registrations are submitted to KYMCO USA through the use of the Warranty Registration function of the KYMCO USA dealer website. To register the sale of a KYMCO online: 1. Log into the KYMCO USA dealer website dealer system at the following link (www.kymcousa.com/login.asp), using your assigned user name and password. 2. Select the WARRANTY link (found midway down the column, in red lettering, on the lefthand side of the page) to open the WARRANTY page. 3. Once the WARRANTY page opens, select the ONLINE WARRANTY REGISTRATION link (the second option, in red lettering, in the column on the left-hand side of the page) to open the KYMCO USA ADMINISTRATION page. 4. Once the KYMCO USA ADMINISTRATION page is open, type in your assigned user name and password to access the Vehicle Registration data entry fields. 5. In the data field on the left, type in the 17-digit Vehicle Identification Number (VIN) and click the FIND button. This will verify that the VIN is valid, and is within the KYMCO USA database. Once verified, proceed to step 6. Should there be a discrepancy, check your entry for errors, as most processing difficulties are caused by not physically checking the numbers on the vehicle s documentation or on the KYMCO vehicle, itself. The numbers must be an exact match to the product when submitting the registration. 6. Enter the new customer s information in the fields where indicated. The fields marked with an asterisk (*) indicate required information. Take extra care to enter valid data properly, so that KYMCO USA can send important product information to the customer whenever necessary. 7. Once all of the customer data is entered, click on the SAVE button to submit the vehicle s registration to KYMCO USA. 8. Once registration entry is complete, click on the SIGN OUT link in the top, right-hand area of the page to exit the KYMCO USA ADMINISTRATION page. 03.02 Vehicle Registration Corrections If your dealership inadvertently enters incorrect customer information during the Vehicle Registration process, notify your KYMCO USA Customer Service Representative as soon as possible to rectify the error. WARRANTY POLICY MANUAL SECTION 3 /1

VEHICLE REGISTRATION SECTION 3 03.03 Vehicle Documentation or Registration Problems If a discrepancy is found on any documents which accompany a KYMCO vehicle delivered to your dealership, contact your KYMCO USA Customer Service Reprehensive. If you encounter any difficulty registering a vehicle s sale online, contact your KYMCO USA Customer Service Representative. 03.04 Vehicles Sold by another Dealer Should a dealer sell or transfer a KYMCO product in new condition to another dealer, the Manufacturer s Statement of Origin (MSO) and other documents should be transferred to the purchasing dealer. At the time of retail sale, the new dealer is responsible to register the sale online with KYMCO USA. 03.05 Vehicle Registration Submittal Deadline The Vehicle Registration should be completed online with KYMCO USA as soon as possible so the appropriate sales and warranty registration procedures may be completed. Your dealership should complete the registration process within two days of vehicle delivery to the customer. 03.06 Vehicle Registration Processing & Warranty Activation Upon receipt of an Online Vehicle Registration from your dealership, KYMCO USA will register the product s warranty. Note: If you fail to register a new KYMCO sale and the vehicle requires warranty service at another dealer, your omission could cause considerable hardship for your customer. Note: Once registered, a new KYMCO vehicle is no longer eligible for a Warranty Claim for parts missing within a shipping crate, or Warranty Claims related to repairs required to put the vehicle into safe and proper working order prior to delivery to the customer. Federal law also requires you to complete all recall or modification-related repairs to a vehicle before delivery to a customer. WARRANTY POLICY MANUAL SECTION 3 / 2

WARRANTY POLICIES SECTION 4 KYMCO vehicles and products are produced with a combination of superior engineering and sound assembly practices. To demonstrate the product s durability and quality, and provide the purchaser an added benefit, KYMCO USA offers vehicles and parts with a variety of limited warranty policies. 04.01 Current KYMCO USA Warranty Policies KYMCO USA provides and administers six separate warranty policies. They are as follows: 1. Two Wheel Vehicle Limited Warranty Policy (motorcycles and scooters, see section 04.08) 2. Four Wheel Limited Warranty Policy (All Terrain and Side-by-Side vehicles, see section 04.10) 3. Environmental Protection Agency (EPA) & California Air Resource Board (CARB) Emissions System Warranty Policy On-road models (see sections 04.11 & 04.12) 4. Environmental Protection Agency (EPA) & California Air Resource Board (CARB) Emissions System Warranty Policy Off-road models (see sections 04.13 & 04.14) 5. KYMCO Genuine Parts & Accessory Limited Warranty (see sections 04.15 and 04.16) 04.02 Policy Distribution Every customer who purchases a warrantable new KYMCO vehicle or product from your dealership must be given a copy of the applicable warranty policies at the time of purchase. You should also maintain a supply of polices to provide to customers at their request. Polices can be downloaded at any time from the KYMCO USA dealer website. 04.03 Warranty Policy Territorial Coverage Only the KYMCO USA warranties described within this manual are applicable for KYMCO vehicles and products sold and/or serviced within the United States. However, if you are in a situation where a customer with a non-us specification KYMCO vehicle requires technical or warranty assistance, contact your KYMCO USA Technical Representative for guidance. 04.04 Dealer-provided Warranty Programs Any dealer-provided additional warranties, warranty extensions or service contracts are not related to KYMCO USA s warranty policies. Those types of business agreements are strictly between the dealer and the dealer s customer. WARRANTY POLICY MANUAL SECTION 4 / 1

SECTION 4 WARRANTY POLICIES Note: See section 04.05 for information on the KYMCO Extended Protection Plan (KEP) which your dealership can provide to a customer to protect against unforeseen mechanical breakdown expenses after the vehicle s limited warranty has expired. 04.05 KYMCO Extended Protection Plan The KYMCO Extended Protection Plan ( KEP ) is a repair reimbursement program that can be purchased through your dealership by owners of eligible KYMCO vehicles. KEP can cover the cost of certain mechanical repairs, and other expenses related to covered repairs, beyond the term of the KYMCO USA Limited Warranty Policy. The KYMCO Extended Protection Plan is administered and insured by a third party on KYMCO USA s behalf, and is not subject to KYMCO USA s warranty policies and procedures. If you have any questions concerning the program, contact KEP directly using the resources listed here: KYMCO Extended Protection Dealer Support Website: www.kymcoextendedprotection.com KYMCO Extended Protection Email contacts: General program inquiries: kymco-info@cornerstoneunited.com Sales-related questions: kymco-sales@cornerstoneunited.com Estimate & claims inquiries: kymco-claims@cornerstoneunited.com (also for photo submissions and supporting documentation) Website support: kymco-support@cornerstoneunited.com KYMCO Extended Protection Telephone & Fax: Telephone (toll free): (866) 504-5572 Telephone (general): (828) 449-1246 Fax: (828) 449-1241 Hours: 8:30 AM - 8:00 PM Eastern KYMCO Extended Protection mailing address: KYMCO Extended Protection Eastway Plaza 1899 Tate Blvd SE, Suite 2110 Hickory, NC 28602 04.06 Competition Exclusion from Warranty KYMCO vehicles used in organized competition, or parts installed on such vehicles, are excluded from any KYMCO USA warranty coverage. The rigors and demands of certain types of competition can affect a vehicle beyond the use for which it was originally designed. As a KYMCO USA dealer, you must make sure your customers are aware that competition use will affect their vehicle s warranty coverage. WARRANTY POLICY MANUAL SECTION 4 / 2

SECTION 4 WARRANTY POLICIES 04.07 Two Wheel Vehicle Limited Warranty Certificate (Part number T500-MC-A2) WARRANTY POLICY MANUAL SECTION 4 / 3

SECTION 4 WARRANTY POLICIES 04.08 Two Wheel Vehicle Limited Warranty Policy (Part number T500-MC-A1) WARRANTY POLICY MANUAL SECTION 4 / 4

SECTION 4 WARRANTY POLICIES 04.09 Four Wheel Vehicle Limited Warranty Certificate (Part number T400-ATV-A7) WARRANTY POLICY MANUAL SECTION 4 / 5

SECTION 4 WARRANTY POLICIES 04.10 Four Wheel Vehicle Limited Warranty Policy (Part number T400-ATV-A2) WARRANTY POLICY MANUAL SECTION 4 / 6

SECTION 4 WARRANTY POLICIES 04.11 On-Road Federal Emission Control System & California Emission Control System Limited Warranty Coverage KYMCO motorcycles and scooters are equipped with emission control systems which meet the standards set by the U.S. Environmental Protection Agency (EPA) and the California Air Resource Board (CARB). If the KYMCO motorcycle or scooter is equipped with a headlight, taillight, and stoplight it is warranted against defects in materials and workmanship of all emission-related components which would prevent the vehicle from complying with EPA or CARB regulations (review the policy for specific information). WARRANTY POLICY MANUAL SECTION 4 / 7

SECTION 4 WARRANTY POLICIES 04.12 On-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T500-MC-A4A; page 1) WARRANTY POLICY MANUAL SECTION 4 / 8

SECTION 4 WARRANTY POLICIES On-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T500-MC-A4A; page 2) WARRANTY POLICY MANUAL SECTION 4 / 9

SECTION 4 WARRANTY POLICIES On-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T500-MC-A4A; page 3) WARRANTY POLICY MANUAL SECTION 4 / 10

SECTION 4 WARRANTY POLICIES On-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T500-MC-A4A; page 4) WARRANTY POLICY MANUAL SECTION 4 / 11

SECTION 4 WARRANTY POLICIES On-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T500-MC-A4A; page 5) WARRANTY POLICY MANUAL SECTION 4 / 12

SECTION 4 WARRANTY POLICIES On-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T500-MC-A4A; page 6) WARRANTY POLICY MANUAL SECTION 4 / 13

SECTION 4 WARRANTY POLICIES 04.13 Off-Road Federal Emission Control System & California Air Resource Board Emission Control System Limited Warranty Coverage Beginning with 2006 and each subsequent model year, KYMCO began producing off-road vehicles with emission control systems which met the standards set by the U.S. Environmental Protection Agency (EPA) and the California Air Resource Board (CARB). These vehicles are warranted against defects in materials and workmanship of all emission-related components which would prevent the motorcycle or ATV from complying with EPA or CARB emission or sound-level regulations (review the policy for specific information). WARRANTY POLICY MANUAL SECTION 4 / 14

SECTION 4 WARRANTY POLICIES 04-14 Off-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T400-ATV-A4A; page 1) WARRANTY POLICY MANUAL SECTION 4 / 15

SECTION 4 WARRANTY POLICIES Off-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T400-ATV-A4A; page 2) WARRANTY POLICY MANUAL SECTION 4 / 16

SECTION 4 WARRANTY POLICIES Off-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T400-ATV-A4A; page 3) WARRANTY POLICY MANUAL SECTION 4 / 17

SECTION 4 WARRANTY POLICIES Off-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T400-ATV-A4A; page 4) WARRANTY POLICY MANUAL SECTION 4 / 18

SECTION 4 WARRANTY POLICIES Off-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T400-ATV-A4A; page 5) WARRANTY POLICY MANUAL SECTION 4 / 19

SECTION 4 WARRANTY POLICIES Off-Road Federal Emission Control System & California Emission Control System Limited Warranty Policy (Part number T400-ATV-A4A; page 6) WARRANTY POLICY MANUAL SECTION 4 / 20

SECTION 4 WARRANTY POLICIES 04.15 KYMCO Parts and Accessory Limited Warranty Policy Coverage This limited warranty policy applies to spare parts and accessories manufactured by KYMCO and distributed through KYMCO USA authorized dealers. The warranty also covers related replacement labor, per the KYMCO USA Flat Rate Table, of a KYMCO-produced part or accessory that was installed by a KYMCO USA authorized dealer. The warranty is effective from the part or accessory s date of purchase by the original purchaser with the following limitations: 1. COUNTER PARTS KYMCO-produced parts are covered for 90 days. 2. INSTALLED PARTS Parts and replacement labor are covered for 90 days; if the KYMCO-produced part was installed on the appropriate KYMCO vehicle by an authorized KYMCO USA dealer. 3. APPAREL KYMCO-produced apparel, such as shirts, helmets, and gloves, are covered for 30 days. Note: The warranty period Expiration Date for any part or accessory repaired or replaced under this warranty is based on the item s original Purchase Date, and not on any subsequent repair or replacement dates. The purchaser must always present the receipt or repair order, which lists the potentially defective part when requesting a warranty-coverage inspection. Note: Many of the items distributed by KYMCO USA are supplied by vendors that provide warranty coverage for their products. Such documentation will be supplied with the item. If a question arises about the warranty coverage of a vendor-supplied item, please contact your KYMCO USA Customer Service Representative. WARRANTY POLICY MANUAL SECTION 4 / 21

SECTION 4 WARRANTY POLICIES 04.16 KYMCO Parts and Accessory Limited Warranty Policy (Part number T500-PA-A1A) WARRANTY POLICY MANUAL SECTION 4 / 22

SECTION 4 WARRANTY POLICIES 04.17 Labor Reimbursement for Parts & Accessory Warranty Claims Labor reimbursement for parts and accessories replaced under this warranty may be requested only if the part or accessory was purchased from and installed by an authorized KYMCO USA dealer (see section 04.15 & 04.16 for coverage limitations). Labor reimbursement is calculated using the Warranty Repair Flat Rate Table as a guide. Warranty Claims submitted to KYMCO USA without proof of purchase of the Failed Part or accessory, or without verification of KYMCO dealer installation cannot be processed. 04.18 Prior Authorization Requirement for Parts & Accessory Warranty Claims Because of the rare nature of a failure of a KYMCO-produced parts or accessory due to a manufacturing defect, all Warranty Claims of this type must be pre-authorized by your KYMCO USA Technical Representative. WARRANTY POLICY MANUAL SECTION 4 / 23

WARRANTY REPAIR GUIDELINES SECTION 5 05.01 Dealer Warranty Repair Obligation A KYMCO vehicle owner may have his or her KYMCO repaired under its applicable warranty policy at any authorized KYMCO USA dealer (for that vehicle type). All KYMCO USA dealers are required to perform warranty repairs on any eligible KYMCO model, regardless of where the vehicle was purchased. Vehicle owners are not to be charged for warranty repairs, including the cost of parts, labor or any related sublet charges. The vehicle owner is not required to provide a deposit or perform any special action in order to persuade your dealership to perform required warranty repairs. All warranty-related repairs must be providing in the spirit of KYMCO USA s policy of providing prompt, timely service and quality repairs. All warranty repairs performed by your dealership must comply with any applicable federal, state or local regulations. 05.02 KYMCO USA Dealer Exclusivity Warranty repairs to a KYMCO product originally sold in the United States can only be performed by an authorized KYMCO USA dealer (for that vehicle type). Note: The California Emission Control System Limited Warranty Policy has a provision for emergency repair situations (see the applicable policy as set forth in Section 4 herein). This provision exists to address unforeseen situations and is not intended to exempt any KYMCO USA dealership from any warranty repair obligations. 05.03 Warranty Repair Priority Your dealership is required to provide priority service to KYMCO USA customers with warranty repair requests. When presented with a request for a warranty-related repair, you should perform all necessary diagnostic checks to validate the eligibility of the repair to be performed under warranty. Once verified, complete the repair as soon as possible. Note: Consumer Protection Laws and regulations provide customers with certain rights; specifically, repairs to vehicles that are covered under KYMCO USA Limited Warranty Policies must be made in a timely fashion. Delays to warranty repairs, whether caused by your dealership or a third party, could subject your dealership to penalties or sanctions. Use every resource available to you, including the knowledge and experience of your KYMCO USA Technical Representative, to quickly diagnose and perform the warranty repair so as to avoid any legal entanglements. Your courteous and prompt attention to warranty repairs will foster good will, future business opportunities, and customer satisfaction. 05.04 Warranty Repair Time Guidelines Under ideal circumstances your dealership s Service Department should strive to match or exceed these recommended warranty repair guide lines: 1. Accept the vehicle immediately for warranty repair diagnosis upon the customer s request 2. Diagnose the vehicle within twenty-four (24) hours of the vehicle s arrival at the dealership WARRANTY POLICY MANUAL SECTION 5 / 1

SECTION 5 WARRANTY REPAIR GUIDELINES 3. If your diagnosis reveals a situation for which you need technical or customer relations support, or the repair requires prior authorization, contact your KYMCO USA Technical Representative immediately 4. Research and order the parts required for the repair with forty-eight (48) hours of the vehicle s arrival at the dealership 5. If a parts order is not required, complete the warranty repairs immediately 6. Contact the customer to schedule the immediate delivery of the vehicle (once it is confirmed that the repair resolved the complaint and failure) 7. Complete and submit the Warranty Claim the next business day following the repair 8. Review your submitted Warranty Claim status on a weekly basis Note: You should keep your customer apprised of the progress of the warranty repair at each milestone listed above, or once each day. Provide true information and realistic estimates of when parts will arrive or the repairs will be completed. Customers will recognize honesty and integrity and will grant you latitude and respect as you repair their vehicle. 05.05 Dealer Periodic Maintenance Obligation Periodic maintenance service offered by your KYMCO USA dealership must be properly performed as outlined in the vehicle s Service or Owner s Manual. You are required to provide your staff with the necessary work environment, tools and reference materials to affect proper service and repairs. You are entitled to charge a fair and reasonable price for your services, but all charges must be consistent with national and local market conditions. 05.06 Customer Periodic Maintenance Obligation KYMCO vehicle owners are responsible to obtain periodic maintenance service as described in their vehicle s Owner s Manual. It is the vehicle owner s responsibility to pay for this periodic service, including parts, labor and related fees. Vehicle owners should keep accurate records of all services made to their vehicle, using the Maintenance record fields supplied in their Owner s Manual. KYMCO vehicle owners should be advised that although their KYMCO USA dealer is best equipped to provide quality service to their vehicle, certain federal and state laws require that any competent technician be considered eligible to perform these periodic maintenance services. However, vehicle owners should be advised that any damage to their vehicle arising out of a failure to follow the periodic maintenance schedule as set forth in their KYMCO Owner s Manual, or arising out of improper servicing techniques employed by a non-kymco USA dealer technician, will not be covered under the vehicle s Limited Warranty Policy and will be customer s sole financial responsibility. 05.07 Warranty Repair Exclusions Some items and circumstances are excluded from KYMCO USA warranty coverage. Refer to the vehicle s appropriate Limited Warranty Policy for additional details. For all KYMCO vehicles, the following situations are excluded from warranty coverage: WARRANTY POLICY MANUAL SECTION 6 / 2

SECTION 5 WARRANTY REPAIR GUIDELINES 1. Failures that are not defects in materials or factory workmanship 2. Failures occurring after the expiration of the limited warranty coverage period 3. Damage to the vehicle from: a. Accidents b. Misuse c. Negligence d. Improper operation of the vehicle e. Alterations to the vehicle f. Competition use g. Abusive operation 4. Damage to the vehicle from: a. Insufficient maintenance or repairs b. Improper storage techniques c. Use of improper fuels or lubricants d. Use of non-genuine KYMCO parts or accessories 5. Normal wear or environmental deterioration of items such as: a. Tires b. Brake pads and linings c. Drive chains (or primary or drive belts) d. Sprockets (or belt pulleys) e. Spokes f. Clutch plates g. Filters (air, fuel or oil) h. Incandescent bulbs i. Spark plugs j. Body panels k. Fuses l. Valve lash shims m. Other rubber parts (except oil seals) 6. Piston and cylinder seizures that are not related to defects in materials or factory workmanship 7. Vehicles that are used for commercial, rental, or law enforcement purposes (unless the agency receives a written exemption permitting Limed Warranty Policy coverage from KYMCO USA). 8. Routine periodic service of the vehicle 9. Incidental or consequential damage such as: a. Loss of use of the KYMCO vehicle b. The expense of returning the vehicle to an authorized KYMCO USA dealer for repairs c. Inconvenience WARRANTY POLICY MANUAL SECTION 6 / 3

SECTION 5 WARRANTY REPAIR GUIDELINES d. Damage to personal property or the property of third parties (Some States do not allow the exclusion or limitation of incidental or consequential damages.) WARRANTY POLICY MANUAL SECTION 6 / 4

VEHICLE OWNER RESPONSIBILITIES SECTION 6 A KYMCO vehicle s retail owner has specific warranty responsibilities in a similar way that your KYMCO USA dealership has warranty-related responsibilities. These responsibilities include, but are not limited to, using the vehicle in a proper fashion and keeping it in good mechanical condition. 06.01 Vehicle Owner Responsibilities 1. The vehicle owner must operate and maintain their KYMCO product in a normal and reasonable manner, as described in the vehicle s Owner s Manual. 2. The vehicle owner must obtain and pay for periodic maintenance. 3. The vehicle owner must be able to show that the KYMCO product has received the required maintenance, in the instance that a problem may have been caused by the lack of proper periodic maintenance. 4. The vehicle owner must bring the KYMCO product to an authorized KYMCO USA dealer (for that vehicle type) before any warranty consideration can be made. 5. If the failure is not a manufacturing defect, or if the vehicle s Limited Warranty Policy has expired, the vehicle owner is solely responsible for the cost of the repair. 06.02 Proper Vehicle Operation Operating a KYMCO vehicle as described in the vehicle s Owner s Manual will reward the vehicle owner with a safe and satisfying ownership experience. Using the vehicle in ways proscribed by the limitations set forth the Owner s Manual, can reduce the service life of the vehicle, and affect its safety and performance. Note: These limitations include, but are not limited to riding any KYMCO vehicle in KYMCO an organized competition, or in a manner substantially similar to racing or any other form of competition. Parts installed on vehicles used in this manner are also excluded from any KYMCO USA warranty coverage. The rigors and demands of certain types of competition can subject a vehicle to conditions outside of which it was originally designed. As a KYMCO USA dealer, you must make sure your customers are aware that competition use will affect their vehicle s warranty coverage. 06.03 Customer Periodic Maintenance Obligation KYMCO vehicle owners are responsible to perform, or cause to be performed, periodic maintenance service as described in their vehicle s Owner s Manual. It is the vehicle owner s responsibility to pay for this periodic service, including parts, labor and fees. Note: KYMCO vehicle owners should be advised that although their KYMCO USA dealer is best equipped to provide quality service to their vehicle, certain federal and state laws require that any competent technician be considered eligible to perform these periodic maintenance services. However, vehicle owners should be advised that any damage to their vehicle arising out of a failure to follow the periodic maintenance schedule as set forth in their KYMCO Owner s Manual, or arising out of improper servicing techniques employed by a non-kymco USA dealer WARRANTY POLICY MANUAL SECTION 6 / 1

VEHICLE OWNER RESPONSIBILITIES SECTION 6 technician, will not be covered under the vehicle s Limited Warranty Policy and will be customer s sole financial responsibility. 06.04 Customer Vehicle Service Records KYMCO vehicle owners should keep accurate records of all services made to their vehicle, using the Maintenance record fields supplied in their Owner s Manual. Documentation and receipts for accessories should also be maintained. Note: Since improper periodic service can affect the function and reliability of a KYMCO vehicle, your customer may need provide proof of service or repairs if the vehicle encounters a problem which repair would be a covered item under a KYMCO USA Limited Warranty Policy. Presentation of service records will also aid your service staff in their diagnostic efforts to resolve the customer s complaint. 06.05 Warranty Service Requests A customer may have their KYMCO inspected for warranty repair consideration from any authorized KYMCO USA dealer for that product type, regardless of which dealer sold the vehicle. For a customer to receive warranty consideration from your dealership, you must first verify the vehicle s eligibility by using the Warranty Administration functions within the KYMCO USA dealer-support website. The customer can also provide your dealership other documentation to verify the legitimate date of purchase and warranty coverage. 06.06 Out-of-Warranty Repair Requests If a KYMCO vehicle owner asks you to cover the repair costs of a failure that is not a defect, or has occurred on a vehicle with an expired Limited Warranty Policy, you must polity decline the request and explain the reason(s) why the customer is responsible for the repair costs. However, some customers may not fully understand their responsibility or may be in a financial situation where the expense of the repair would be a burden. In these situations, your dealership should strive to find a solution that would be beneficial to both parties. If the vehicle owner feels that KYMCO USA should pay for part or all of the out-of-warranty repairs, contact your KYMCO USA Technical Reprehensive to discuss the situation. Note: Do not advise a KYMCO vehicle owner to contact KYMCO USA directly about an out-of warranty repair request, or any other topic. Contact your KYMCO USA Technical Representative on your customer s behalf if he or she wants KYMCO USA to assist in an out-ofwarranty situation. 06.07 Customer Education during New Vehicle Delivery It is your responsibility as a KYMCO USA dealer, to educate your customer about the requirements and responsibilities of KYMCO vehicle ownership. Providing a thorough education about the vehicle s service needs and its warranty coverage will encourage the customer to perform the proper periodic servicing, and will help to eliminate confusion if a warranty-related situation arises. WARRANTY POLICY MANUAL SECTION 6 / 2

VEHICLE OWNER RESPONSIBILITIES SECTION 6 Note: Use the Assembly & Pre-Delivery Checklist Form as a guide during new vehicle customer education. In addition to KYMCO-related topics, be sure to inform your customer about rules and regulations that will enhance his or her relationship with your dealership. WARRANTY POLICY MANUAL SECTION 6 / 3

WARRANTY SERVICE PROCEDURES SECTION 7 Whenever a KYMCO product is brought to your dealership for warranty service or repairs, a number of procedures must be followed. Following these procedures will encourage customer satisfaction and loyalty, assure proper documentation, and prompt Warranty Claim payment. 07.01 Dealer Responsibility Your dealership s responsibility to quickly and professionally perform Warranty repairs is extremely important. A quick and accurate response to your customer s warranty needs will assure both your customer s satisfaction with the KYMCO product and foster his or her loyalty to your dealership. It is your responsibility to maintain a service department staffed with trained personnel, and stocked with adequate tools, equipment and reference materials to properly set up, service and repair the KYMCO products that your dealership is authorized to sell. All warranty repairs must be performed in accordance with KYMCO USA policies and procedures as set forth in this manual and other KYMCO USA publications. You, and all of your dealership personnel, are responsible for being aware of all such policies and procedures. Prior to any warranty repair attempt, should the need for technical or business support arise, contact your KYMCO USA Technical Representative immediately. Warranty Claims submitted to the KYMCO USA Warranty Department that do not comply with published policies and procedures, or repeat claims for repairs due to improper diagnosis and/or incompetent repair practices, will be declined. KYMCO USA is not responsible for the expense of attempted repairs that do not correct the original defect. KYMCO USA will only reimburse your dealership for the successful correction of the defect. 07.02 Repair Order for Each Warranty Job Each time a KYMCO vehicle is brought to your KYMCO USA dealership for repair under a Limited Warranty Policy or an Emissions Control Limited Warranty Policy, a Repair Order must be used. A Repair Order must also be written for warranty repairs performed on KYMCO vehicles prior to retail sale. Each Repair Order must contain the following information: 1. Customer name, signature and telephone number (if the unit has been sold); 2. Mileage at time of failure, mileage at time of successful repair; 3. Date of the Repair Order, date at time of failure, date at time of successful repair, and date the repaired vehicle was pick up from your dealership by the customer; 4. The name of the servicing technician; 5. Your dealership s name and KYMCO USA Dealer Number; 6. The Warranty Claim number(s) submitted for the repairs listed on the Repair Order (the Warranty Claim number is created by the KYMCO Online Warranty System. Your dealership s Warranty Administrator must note and refer to the assigned claim number when utilizing the online system or corresponding with a KRA); and 7. Your dealership s Shop Labor Rate (per hour) All Repair Orders must contain the vehicle owner s signature. If the KYMCO vehicle is in your unsold inventory, the signature of a designated dealership employee (usually the Service or WARRANTY POLICY MANUAL SECTION 7 / 1

SECTION 7 WARRANTY SERVICE PROCEDURES Sales Manager) must appear on the Repair Order. All complaints and repair information on the eventual Warranty Claim must match the information on the Repair Order. The Repair Order must be numbered, and that number will need to be supplied when submitting a claim though KYMCO USA s Online Warranty Claim System. The customer must be given a copy of the Repair Order for his or her records, and a master hard copy retained in your dealership s service history files. Do not send KYMCO USA a copy of a warranty-related Repair Order unless instructed to do so. 07.03 KYMCO Repair Authorization (KRA) Most warranty determinations can be made by mean of the information provided to you through a vehicle s warranty policies and through the guidelines provided in this manual. Some specific types of warranty repairs, however, require prior approval from a KYMCO USA Technical Representative prior to the commencement of repairs. This preauthorization the KYMCO Repair Authorization (KRA) enables KYMCO USA to assist your dealership in managing warranty-related repairs. The KRA also serves to alert KYMCO USA s technical staff to certain types of failures as they occur, allowing them to notify KYMCO s engineering and manufacturing groups, in order to improve future products. 07.04 KRA Affected Repairs: The following types of repairs and situations require authorization prior to affecting the repair and submitting a claim: 1. When total repair costs will exceed $500.00 2. When a claim must be submitted for performing the same repair twice 3. For labor costs exceeding the flat-rate amount for the repair 4. For any sublet costs 5. For replacement of an entire assembly when component parts are available 6. Battery replacement (see KYMCO USA Service Bulletin GEN-007 for repair and warranty repair eligibility guidelines information). 7. Fuel system cleaning (see KYMCO USA Service Bulletin GEN-006 for repair and warranty repair eligibility guidelines information). 8. A failed Genuine KYMCO Part or Accessory situation 9. For out-of-warranty repairs (the vehicle s warranty has expired or the failure is not a covered defect) 10. For fire or accident-related damage Important: If a customer states that his or her unit has been damaged by fire or by an accident which arose as a result of the failure or defect of any vehicle component you must immediately contact your KYMCO USA Technical Representative to discuss the situation before any disassembly or repairs are commenced. Warranty Claims received without KRA authorization information will be returned to your dealership (such notification will be made through the Warranty Claim system, or via the email address you supplied when you established your KYMCO USA dealership). All Warranty Claims WARRANTY POLICY MANUAL SECTION 7 / 2

SECTION 7 WARRANTY SERVICE PROCEDURES that require KRA authorization information must be fully and accurately completed. Incomplete Warranty Claims cannot be processed by KYMCO USA. 07.05 KRA Authorization Procedure Every time you encounter a repair situation that requires KRA authorization you must contact the KYMCO USA Technical Representative for your region of the country. In most cases, you will be able to speak to your representative during regular business hours. Occasionally, however, you may need to leave a message for the representative. When leaving a message, be sure to include your name, your dealership s name, your KYMCO USA Dealer Number, your telephone number (including the area code), the model of the vehicle you are repairing, a description of the problem, and that you are requesting KRA for a vehicle under warranty. Important: Be sure to state clearly in your message that you are awaiting prior authorization before proceeding with a repair. This will alert the KYMCO USA Technical Representative that you require assistance, and he or she will return your call as soon as possible. Reminder: Other KYMCO USA support departments are not equipped to assist your dealership with technical support or warranty repair authorizations. Only in an emergency situation should you attempt to contact someone other than your regional Technical Representative. 07.06 Information your KYMCO USA Technical Representative Will Need Your KYMCO USA Technical Representative will always need the following technical information when evaluating your request for technical assistance, before returning your technical support or KRA call, or before a decision to authorize your KRA can be made: 1. Complete Model Designation 2. VIN or frame number 3. Date of purchase, and date of warranty expiration 4. Date of failure 5. Customer name 6. Mileage, or an estimate of the Hours that the product has been used 7. An accurate and specific description of the vehicle s problem, symptom, or condition. 8. Service and warranty history (if known) of the product Depending on the specific circumstances, your KYMCO USA Technical Representative may also need additional information, such as: A. Vehicle condition, and whether modifications have been made and/or accessories added B. Fuel and oil types and brands used WARRANTY POLICY MANUAL SECTION 7 / 3

SECTION 7 WARRANTY SERVICE PROCEDURES C. Basic rider information (age, weight, experience, etc.) D. Tire condition and/or tread depth E. Selling Dealer Number (if different from your dealership) 07.07 Authorization Number/KRA Number When a KYMCO USA Technical Representative authorizes a repair, you will be given a unique alpha-numeric Authorization Number, known as a KRA number. Each Warranty Repair Authorization will be assigned a unique KRA number specific to that Warranty Claim and cannot be reused on another repair. The inclusion of a KRA number on your Warranty Claim Form is mandatory. Your claim must accurately reflect the KRA number issued by your Technical Representative in the space provided in your Warranty Claim Form, and will be verified against KYCO USA records before the claim can be processed. 07.08 Non-USA Vehicle Warranty Coverage The KYMCO USA a Limited Warranty Policy provides coverage only for vehicles imported and distributed by KYMCO USA. Units which are not imported and distributed by KYMCO USA are not eligible for warranty coverage. Note: If you are contacted by a customer with a non-usa specification KYMCO vehicle seeking repairs, contact your KYMCO USA Technical Representative to determine if it would be appropriate for you to offer the customer technical assistance. As many of the vehicles distributed by KYMCO in other markets are of different specifications, you may not have the special tools and reference materials available to offer proper service to the customer. Notify the customer that even if you are able to provide technical assistance, it will be the customer s sole responsibility to discuss warranty coverage with the selling dealer or distributor from where the vehicle was originally obtained. 07.09 Late Submission of Warranty Claims KYMCO USA Warranty Policy requires that all Warranty Claims must be received within thirty (30) days of the date of repair of the vehicle. As such, your punctual submission of all claim information not only assists KYMCO USA, but ultimately affects your dealership, as well. Prompt submission of claims by your dealership not only assists KYMCO USA in providing timely reimbursement of eligible claims to you, but it allows KYMCO USA to rapidly respond to any quality control issues, which will ultimately affect customer satisfaction. If Warranty Claims are received by KYMCO USA outside of the 30-day submission period, they will not be processed. Should there be extenuating circumstances for the delay, contact your KYMCO USA Technical Representative who can consider processing a delinquent Warranty Claim on a case-by-case basis. WARRANTY POLICY MANUAL SECTION 7 / 4