FTC Used Car Rule - Part 2

by: AFI

IF YOU CONDUCT A USED CAR TRANSACTION IN SPANISH, you must post a Spanish language Buyers Guide on the vehicle before you display it for sale.

* For samples of the legal forms go to: www.ftc.gov/bcp/conline/pubs/buspubs/usedcarc.htm


The Buyers Guide has two versions: One says "As Is - No Warranty;" the other says "Implied Warranties Only."

As Is - No Warranty. If state law allows it, and you choose not to offer a warranty - written or implied - you must ust the "Implied Warranties Only" version.

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. Contact your state Attorney General about state warranty requirements. In some states, use of the As Is - No Warranty Buyers Guide may be legally sufficient to eliminate implied warranties. To determine exactly which version of the Buyers Guide you should use, contact the FTC or your state Attorney General.

You MUST list the percentage of repair costs are covered by the warranty and if a deductable will be charged. You must list the systems that are covered and the length of the warranty for each system. The Rule prohibits the use of shorthand phrases such as "drive train" or "power train" because these phrases are not specifically clear which components are actually included.

If the manufacturers warranty has not expired, check the "Warranty " box and in the "systems covered/duration" section write: "MANUFACTURERS WARRANTY STILL APPLIES. The disclosure must be stated in this exact language. Using phrases such as "balance of factory warranty" is not sufficient.

You must give the buyer the original copy of the vehicle's Buyers Guide at the close of the sale. The guide must reflect all final changes. The buyer must sign that they have received a copy of the Buyers Guide with all changes reflected.

Two publications are available to help you comply with these and other federal regulations: A Businessperson's Guide to Federal Warranty Law and A Legal Supplement to Federal Warranty Law. Both are available from the FTC. Call toll-free 877-FTC-HELP, or write: Consumer Response Center, Federal Trade Commission, Washington, DC 20580. The full text of each of these can be found at www.ftc.gov.