If You Buy a Used Car From a Dealer

If You Buy a Used Car From a Dealer


If you go to a dealer for a used car, look for a "Buyers
Guide" sticker on the window of each car. The Buyers Guide,
required by the Federal Trade Commission's Used Car Rule, gives
you important information and suggestions to consider. The
Buyers Guide tells you:

* Whether the vehicle comes with a warranty and, if
so, what specific protection the dealer will provide;

* Whether the vehicle comes with no warranty ("as
is") or with implied warranties only;

* That you should ask to have the car inspected by
an independent mechanic before you buy;

* That you should get all promises in writing; and

* What some of the major problems are that may occur in any
car.

The Used Car Rule requires dealers to post the Buyers
Guide on all used vehicles, including automobiles, light-duty
vans, and light-duty trucks. "Demonstrator" cars also must have
Buyers Guides. But Buyers Guides do not have to be posted on
motorcycles and most recreational vehicles. Individuals selling
fewer than six cars a year are not required to post Buyers
Guides.

Whenever you purchase a used car from a dealer, you should
receive the original or an identical copy of the Buyers Guide
that appeared in the window of the vehicle you bought. The
Buyers Guide must reflect any changes in warranty coverage that
you may have negotiated with the dealer. It also becomes a part
of your sales contract and overrides any contrary provisions
that may be in that contract.

As you read this brochure, you can refer to the Buyers
Guide, shown on pages 6 through 8.


"As Is--No Warranty"


About one-half of all used cars sold by dealers come
"as is," which means there is no express or implied warranty.
If you buy a car "as is" and have problems with it, you must
pay for any repairs yourself. When the dealer offers a vehicle
for sale "as is," the box next to the "As Is--No Warranty"
disclosure on the Buyers Guide will be checked. If this box is
checked but the dealer makes oral promises to repair the
vehicle, have the dealer put those promises in writing on the
Buyers Guide.

Some states (Connecticut, Kansas, Maine, Maryland,
Massachusetts, Minnesota, Mississippi, New York, Rhode Island,
Vermont, West Virginia and the District of Columbia) do not
permit "as is" sales for most or all used motor vehicles.


"Implied Warranties Only"


Implied warranties exist under all state laws and come
with almost every purchase from a used car dealer, unless the
dealer tells you in writing that implied warranties do not
apply. Usually, dealers use the words "as is" or "with all
faults" to disclaim implied warranties. Most states require the
use of specific words.


"If the dealer makes oral promises, have the dealer put
those promises in writing."


The "warranty of merchantability" is the most common type
of implied warranty. This means that the seller promises that
the product will do what it is supposed to do. For example, a
car will run, a toaster will toast.

Another type of implied warranty is the "warranty of
fitness for a particular purpose." This applies when you buy a
vehicle on the dealer's advice that it is suitable for a
particular use. For example, a dealer who suggests that you buy
a specific vehicle for hauling a trailer warrants, in effect,
that the vehicle will be suitable for hauling a trailer.

If you buy a vehicle with a written warranty, but problems
arise that the warranty does not cover, you may still be
protected by implied warranties. Any limitation on the duration
of implied warranties must appear on the written warranty.

In those states that do not permit "as is" sales by
dealers, or if the dealer offers a vehicle with only implied
warranties, a disclosure entitled "Implied Warranties Only"
will be printed on the Buyers Guide in place of the "As Is"
disclosure. The box next to this disclosure would be checked if
the dealer chooses to sell the car with implied warranties and
no written warranty. A copy of the Buyers Guide with the
"Implied Warranties Only" disclosure is shown on page 7.