Most car dealers who sell used vehicles must comply with the Federal Trade Commission's (FTC's) Used Car Rule. 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.
a gross vehicle weight rating (GVWR) of less than 8,500 pounds;
a curb weight of less than 6,000 pounds; and
A frontal area of less than 46 square feet.
any vehicle sold for scrap or parts if the dealer submits title documents to the appropriate state authority and obtains a salvage certification; and
THE BUYERS GUIDE
the major mechanical and electrical systems on the car, as well as some of the major problems that consumers should look out for;
whether the vehicle is being sold "as is" or with a warranty;
what percentage of the repair costs a dealer will pay under warranty;
that oral promises are difficult to enforce;
to get all promises in writing;
to ask to have the car inspected by an independent mechanic before they buy;
to get a vehicle history report and to visit ftc.gov/used cars for information on how to get a vehicle history report, how to check for safety recalls, and other topics; and
To ask for a Spanish Buyers Guide if the sale is conducted in Spanish; and to keep the Buyers Guide for reference after the sale.
The Buyers Guide must be displayed prominently and conspicuously on or in a vehicle when a car is available for sale. This means it must be in plain view and both sides must be visible. You can hang the Guide from the rear-view mirror inside the car or on a side-view mirror outside the car. You also can place it under a windshield wiper. The Guide also can be attached to a side window. A Guide in a glove compartment, trunk or under the seat is not conspicuous because it is not in plain sight.
The Buyers Guide has two versions: One says "As Is-No Dealer Warranty;" the other says "Implied Warranties only."
As Is-No Dealer Warranty. If state law allows it, and you choose not to offer a warranty — written or implied — you must use the "As Is" version and check the box next to the heading "As Is-No Dealer Warranty" on the Guide.
Implied Warranties Only. In states that limit or prohibit the elimination of implied warranties, you must use the "Implied Warranties Only" version and check the box next to the "Implied Warranties Only" if you don't offer a written warranty.
Warranty. If you offer the vehicle with an express warranty, you must check the box next to the heading "Warranty" and complete that section of the Guide. Warranties required by state law must be disclosed in this section. Your state Attorney General can tell you about state warranty requirements.
Is the Warranty "Full" or "Limited"?
Warranty service must be provided to anyone who owns the vehicle during the warranty period.
Warranty service must be provided free of charge when necessary, even for services like removing and reinstalling a system covered by the warranty.
The consumer must be able to choose either a replacement or a refund if the vehicle can't be repaired after a reasonable number of tries.
The consumer is not required to take any action to receive service, except to give notice that service is needed. Service must be rendered after notice unless the warrantor can demonstrate that it is reasonable to require consumers to do more than give notice.
The length of implied warranties must not be limited.
What Percentage of Costs Does the Warranty Cover?
What Systems Are Covered? For How Long?
What if the Manufacturer’s Warranty Still Applies?
Where Should Negotiated Warranty Changes Be Included?
What Disclosures Should I Make if I Offer a 50/50 Warranty or Another Type of Split Cost Warranty?
The percentage of the total repair cost you will pay.
The percentage of the total repair cost the buyer must pay.
How the total cost of the repair will be determined. For example, your warranty might state: "The total cost of a warranty repair will be the retail price ABC motors charges for the job." As another example, your warranty might state: "The total cost of a warranty repair will be determined by adding the dealer's cost for parts to the labor cost. Labor will be billed at a rate of ________ per hour for the actual time required to complete the repair." As a final example, your warranty might state: "If the work is done by an outside repair shop, total cost of a repair will be the price ABC Motors is charged by the outside shop. If the work is done by ABC Motors, the total cost of the repair will be the same price ABC Motors charges non-warranty customers for the same job."