Used Car Buyers Guide Form
. Introduction Most car dealers who sell used vehicles must comply with the Federal Trade Commission's (FTC's). In fact, car dealers who sell, or offer for sale, more than five used vehicles in a 12-month period must comply with the Rule. Banks and financial institutions are exempt from the Rule, as are businesses that sell vehicles to their employees, and lessors who sell a leased vehicle to a lessee, an employee of the lessee, or a buyer found by the lessee. The Used Car Rule applies in all states except Maine and Wisconsin. These two states are exempt because they have similar regulations that require dealers to post disclosures on used vehicles. The Rule applies in the District of Columbia, Puerto Rico, Guam, the U.S.
Virgin Islands, and American Samoa. This booklet defines the Rule's requirements, explains how to prepare and display the, and offers a compliance checklist. You must post a before you display a vehicle for sale or let a customer inspect it for the purpose of buying it, even if the car is not fully prepared for delivery. You also must display a Buyers Guide on used vehicles for sale on your lot through consignment, power of attorney, or other agreement.
At public auctions, dealers and the auction company must comply. The Rule does not apply at auctions that are closed to consumers. Previously titled or not, any vehicle driven for purposes other than moving or test driving is considered a used vehicle, including light-duty vans, light-duty trucks, demonstrators, and program cars that meet the following specifications:. a gross vehicle weight rating (GVWR) of less than 8,500 pounds;.
Used Car Buyers Guide Form
a curb weight of less than 6,000 pounds; and. a frontal area of less than 46 square feet. Exceptions to the Rule are:. motorcycles;.
any vehicle sold for scrap or parts if the dealer submits title documents to the appropriate state authority and obtains a salvage certification; and. agricultural equipment. The information you see on the window form for this vehicle is part of this contract.
Information on the window form overrides any contrary provisions in the contract of sale. Do you give the vehicle's Buyers Guide or a copy to the purchaser at the time of sale and make sure it states the final negotiated warranty coverage accurately?. If a sale is conducted in Spanish, do you use the Spanish language Buyers Guide?. If you offer a written warranty, do you prepare a warranty document that complies with federal law? Is the warranty document available for examination by potential buyers? What If I Don't Comply?
Dealers who violate the Used Car Rule may be subject to penalties of up to $41,484 per violation in FTC enforcement actions. Many states have laws or regulations that are similar to the Used Car Rule. Some states incorporate the Used Car Rule by reference in their state laws. As a result, state and local law enforcement officials may have the authority to ensure that dealers post Buyers Guides and to fine them or sue them if they do not comply.
Where Can I Get More Information? If you have questions about the Used Car Rule, contact the FTC and request a free copy of the Rule or; both documents explain some aspects of the Rule in more detail. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a or to get, visit or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. Note: Edited March 2018 to reflect.
So, when someone calls my office to say they bought a bad used car, they often know the answer to my first question. 'Did you buy it as is?' If they don't know, I ask them to check their Buyers Guide. Next, I often hear that, even though it was sold as-is, the car has all sorts of problems which should not be wrong with a used car. Here is where it goes tragic.
I point out to them the language on the Buyers Guide (right below the all caps 'AS IS – NO WARRANTY' where it says 'YOU WILL PAY ALL COSTS FOR ANY REPAIRS,') 'The dealer assumes no responsibility for any repairs regardless of any oral statements about the vehicle.' Still, I am often told, this is not fair. Just listen to what went wrong with the car! And then I hear a grievous list of things which have gone wrong. The frame is bent, the brakes have failed. The engine block is cracked, the transmission is faulty.
Used Car Buyers Guide Form Pdf
The complaints go on and on. Isn't it illegal to sell a car with such defects? The car is unsafe to drive! This is where I ask the caller to turn the Buyers Guide over and look at the back of the document.
Used Car Buyers Guide Form Free
There, it lists 'major defects that may occur in used motor vehicles.' Including, frame damage and brake failures. Engine block cracks and faulty transmissions.
In fact, pretty much everything that can go wrong with a car is listed on the back of the Buyers Guide. And the back of the Guide is specifically pointed out to the buyer on the front where it says, 'SEE THE BACK OF THIS FORM for a list of some major defects which may occur in used motor vehicles.' The back of the Buyers Guide Still upset about the used car you just bought with all the defects even though you were handed a form before the purchase which specifically spelled out all the things which can–and did–go wrong with your car? You have no one to blame but yourself. Directly above the advice to read the back of the form is a suggestion that you should look into having the vehicle inspected before you buy it. In my 25 years of speaking with disgruntled car buyers, I can tell you that this entire form has almost no effect on the shopping habits of car buyers.
Most people see the form as just part of the flurry of paperwork which passes in front of them during the car buying vortex. Of course not.
Almost none of the documents get read. And no one is bothering to flip that Buyers Guide over to see what evil lurks on the backside. Which is unfortunate since the backside of that form often predicts the mechanical future of the car in chilling detail. Steve Lehto is a writer and from Michigan.
He specializes in Lemon Law and frequently writes about cars and the law. His most recent books include Preston Tucker and His Battle to Build the Car of Tomorrow, and Dodge Daytona and Plymouth Superbird: Design, Development, Production and Competition. He also has a where he talks about these things.