Glad you asked. The Federal Trade Commission (FTC) Buyers Guide is a form that car dealers are required to display in every used car they have for sale. The FTC Used Car Rule states the form must be given to the buyer at the time of purchase. All states besides Wisconsin and Maine, which have state regulations that require dealers to post a similar disclosure, are required to comply with the Used Car Rule. The latest version of the FTC Buyers Guide was introduced in January 2018 and is displayed below.
The purpose of the buyer's guide is to inform consumers if a used car they are looking at buying is being sold “as is”, or if it has a warranty or partial warranty. Some states, such as Connecticut, Kansas, Maine, Maryland, Massachusetts, Minnesota, Mississippi, New Jersey, New York, Rhode Island, Vermont, West Virginia, and the District of Columbia do not allow “as is” sales. The FTC Buyers Guide for these states will have “Implied Warranties Only” in place of “As Is - No Dealer Warranty”. Implied warranties protect consumers by holding dealers responsible if a car was sold with major defects or doesn’t meet reasonable quality standards. It’s important to remember that in most states dealers can legally circumvent implied warranties by including a written notice to buyers that the car is being sold “as is”. Car dealers can state on the Buyers Guide if they are including a warranty on the car, what is covered and what percentage of repair costs they will pay.
Besides stating if a car has a warranty or not, the FTC Buyers Guide also states:
- Ask the dealer to put all promises in writing.
- Ask the dealer if your mechanic can inspect the vehicle.
- If a service contract is available for purchase.
- Lists major defects that can occur in used motor vehicles.
- How to get a vehicle history report and how to check for open safety recalls.
When shopping for a used car at a dealership it is important that an FTC Buyers Guide is displayed in the car you are looking at. Dealers are required by federal law to display the FTC Buyers Guide and can be fined for not being in compliance. If a dealer isn’t displaying the FTC Buyers Guide, it could be they don’t want customers to know that the car doesn’t have any sort of warranty. Or perhaps, they are ignorant to state and federal laws by which they must abide. Either way, it’s a red flag, and you should ask the dealer why there isn’t an FTC Buyers Guide.
Do you still have questions? We have answers. Contact us today and let’s make your next car purchase a great one.
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