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Used Car Dealer Sales
Used cars are sold through
a variety of outlets: franchise and independent
dealers, rental car companies (i.e., Enterprise car for sale),
leasing companies, and used car superstores.
You can even buy a used car on the
Internet. Some dealers are attracting
customers with "no-haggle
prices," "factory certified" used cars,
and better warranties. Consider the
dealers reputation when you evaluate
these ads. You may want to call your
local consumer protection agency, state
Attorney General (AG), and the Better
Business Bureau (BBB) to find out if
any unresolved complaints are on file
about a particular dealer.
Before you purchase
from a dealer, ask about the dealers
return policy, get it in writing and
read it carefully. Dealers are not
required by law to give used car buyers
a three-day right to cancel. The right
to return the car in a few days for
a refund exists only if the dealer
grants this privilege to buyers. Dealers
may describe the right to cancel as
a "cooling-off" period, a money-back
guarantee, or a "no questions asked" return
policy.
The Federal Trade Commission's
(FTC) Used Car Rule requires dealers to post a
Buyers Guide in every used car they offer for
sale. This includes light-duty vans, light-duty
trucks, demonstrators, and program cars.
Demonstrators are new cars that have not been
owned, leased, or used as rentals, but have been
driven by dealer staff. Program cars are
low-mileage, current-model-year vehicles
returned from short-term leases or rentals.
Buyers Guides do not have to be posted on
motorcycles and most recreational vehicles.
Anyone who sells less than six cars a year
doesn't have to post a Buyers
Guide.
The Buyers
Guide must tell you:
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- whether the
vehicle is being sold "as is" or with a
warranty;
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- what percentage of
the repair costs a dealer will pay under the
warranty;
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- that spoken
promises are difficult to enforce;
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- to get all
promises in writing;
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- to keep the Buyers
Guide for reference after the sale;
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- the major
mechanical and electrical systems on the car,
including some of the major problems you should
look out for; and
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- to ask to have the
car inspected by an independent mechanic before
you buy.
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When you buy a used car from a
dealer, get the original Buyers Guide that was
posted in the vehicle, or a copy. The Guide must
reflect any negotiated changes in warranty
coverage. It also becomes part of your sales
contract and overrides any contrary provisions.
For example, if the Buyers Guide says the car
comes with a warranty and the contract says the
car is sold "as is," the dealer must give you
the warranty described in the
Guide.
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As Is - No
Warranty
When the dealer offers a
classic car for sale
"as is," the box next to the "As Is - No
Warranty" disclosure on the Buyers Guide must be
checked. If the box is checked but the dealer
promises to repair the vehicle or cancel the
sale if you're not satisfied, make sure the
promise is written on the Buyers Guide. Some
states, including Connecticut, Kansas, Maine,
Maryland, Massachusetts, Minnesota, Mississippi,
New Jersey, New York, Rhode Island, Vermont,
West Virginia and the District of Columbia,
don't allow "as is" sales for many used
vehicles.
Louisiana, New Hampshire, and
Washington require different disclosures than
those on the Buyers Guide. The sale is not "as
is" if the dealer fails to provide proper state
disclosures. To find out what disclosures are
required for "as is" sales in your state,
contact your state Attorney
General.
Implied
Warranties
State laws hold dealers
responsible if cars they sell don't meet
reasonable quality standards. These obligations
are called implied warranties (unspoken,
unwritten promises from the seller to the
buyer). However, dealers in most states can use
the words "as is" or "with all faults" in a
written notice to buyers to eliminate implied
warranties.
Warranty
of Merchantability
The most common
type of implied warranty is the warranty of
merchantability: The seller promises that the
product offered for sale will do what it's
supposed to. That a car will run is an example
of a warranty of merchantability. This promise
applies to the basic functions of a car. It does
not cover everything that could go
wrong.
Breakdowns and other problems
after the sale don't prove the seller breached
the warranty of merchantability. A breach occurs
only if the buyer can prove that a defect
existed at the time of sale. A problem that
occurs after the sale may be the result of a
defect that existed at the time of sale or not.
Therefore , a dealer's liability is judged
case-by-case.
Warranty of Fitness for a
Particular Purpose
A warranty of
fitness for a particular purpose applies when
you make a truck sale
based on the dealer's advice that it is suitable
for a particular use. For example, a dealer who
suggests you buy a specific vehicle for hauling
a trailer in effect is promising that the
vehicle will be suitable for that
purpose.
If you have a written warranty
that doesn't cover your problems, you still may
have coverage through implied warranties. That's
because when a dealer sells a vehicle with a
written warranty or service contract, implied
warranties are included automatically. The
dealer can't delete this protection. Any limit
on an implied warranty's time must be included
on the written warranty.
In states that
don't allow "as is" sales, an "Implied
Warranties Only" disclosure is printed on the
Buyers Guide in place of the "As Is" disclosure.
The box beside this disclosure will be checked
if the dealer decides to sell the car with no
written warranty.
In states that do
allow "as is" sales, the "Implied Warranties
Only" disclosure should appear on the Buyers
Guide if the dealer decides to sell a vehicle
with implied warranties and no written warranty.
A copy of the Buyers Guide with the "Implied
Warranties Only" disclosure is on page
13.
Dealers who offer a written warranty
must complete the warranty section of the Buyers
Guide. Compare and negotiate coverage as
coverage varies.
Dealers may offer a full
or limited warranty on all or some of a
vehicle's systems or components, but most used
car warranties are limited. A full warranty
includes the following terms and
conditions: | |
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- Anyone who owns
the vehicle during the warranty period is
entitled to warranty service.
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- Warranty service
will be provided free of charge, including such
costs as removing and reinstalling a covered
system.
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- You have the
choice of a replacement or a full refund if,
after a reasonable number of tries, the dealer
cannot repair the vehicle or a covered system.
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- You only have to
tell the dealer that warranty service is needed
in order to get it, unless the dealer can prove
that it is reasonable to require you to do more.
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- Implied warranties
have no time limits.
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The
warranty is limited-if any of these terms do not
apply.
A full or limited warranty doesn't
have to cover the entire vehicle. The dealer may
specify that only certain systems are covered.
Some parts or systems may be covered by a full
warranty; others by a limited
warranty.
The dealer must check the
appropriate box on the Buyers Guide to indicate
whether the warranty is full or limited and the
dealer must include the following information in
the "Warranty"
section: | |
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- the percentage of
the repair cost that the dealer will pay. For
example, "the dealer will pay 100 percent of the
labor and 100 percent of the parts . . .";
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- the specific parts
and systems - such as the frame, body, or brake
system - that are covered by the warranty. The
back of the Buyers Guide lists the major systems
where problems may occur;
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- the warranty term
for each covered system. For example, "30 days
or 1,000 miles, whichever comes first"; and
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- whether there's a
deductible and, if so, how much.
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You
have the right to see a copy of the dealer's
warranty before you buy. Review it carefully to
determine what is covered. The warranty gives
detailed information, such as how to get repairs
for a covered system or part. It also tells who
is legally responsible for fulfilling the terms
of the warranty. If it's a third party,
investigate their reputation and whether they're
insured. Find out the name of the insurer, and
call to verify the information. Then check out
the third-party company with your local Better
Business Bureau. That's not foolproof, but it is
prudent. Make sure you receive a copy of the
dealer's warranty document if you buy a car that
is offered with a warranty.
Unexpired Manufacturer's
Warranties
If the manufacturer's
warranty still is in effect, the dealer may
include it in the "systems covered/duration"
section of the Buyers Guide. To make sure you
can take advantage of the coverage, ask the
dealer for the car's warranty documents. Verify
the information (what's covered, expiration
date/miles, necessary paperwork) by calling the
manufacturer's zone office. Make sure you have
the Vehicle Identification Number (VIN) when you
call.
Service
Contracts
Like a warranty, a
service contract provides repair and/or
maintenance for a specific period. Service
contracts cost extra and
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Get
a no obligation price quote for a new car or
truck. Click here for an upfront quote
from a local dealer.
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Get a quote for
used vehicles in your area from
both, dealers
and private parties. Get a free quote
here
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Post your car for
sale in three easy steps and let the buyers
come to you.
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