The Used Car
Because new cars are expensive, most
people find themselves in the
market for a used vehicle when they need
wheels. And buying a used car
isn't easy; you want to get the best
car you can for the best deal
you can. Read on to find out how you
can handle your used car purchase.
USED CAR DEALER
If you go to a dealer for a used car, look for a "Buyers Guide" sticker on the
window of each car. The Buyers Guide, required by the Federal Trade Commission's
Used Car Rule, gives you important information and suggestions to consider. The
Buyers Guide tells you:
- Whether the vehicle comes with a warranty
and, if so, what specific protection the dealer will provide;
- Whether the vehicle comes with no
warranty ("as is") or with implied warranties only;
- That you should ask to have the car
inspected by an independent mechanic before you buy;
- That you should get all promises in
writing; and
- What some of the major problems are
that may occur in any car.
The Used Car Rule requires dealers to
post the Buyers Guide on all used vehicles, including automobiles, light-duty
vans, and light-duty trucks. "Demonstrator" cars also must have Buyers Guides.
But Buyers Guides do not have to be posted on motorcycles and most recreational
vehicles. Individuals selling fewer than six cars a year are not required to
post Buyers Guides.
Whenever you purchase a used car from a dealer, you should receive the original
or an identical copy of the Buyers Guide that appeared in the window of the
vehicle you bought. The Buyers Guide must reflect any changes in warranty coverage
that you may have negotiated with the dealer. It also becomes a part of your
sales contract and overrides any contrary provisions that may be in that contract.
PRIVATE PARTY
Many cars are available privately, such as through classified ads in a newspaper.
If you are shopping for a car from an individual, you should understand several
differences between sales made by individuals and by dealers.
- Private sellers generally are not
covered by the Used Car Rule and therefore, do not have to use the Buyers
Guide. However, you still can follow the Guide's suggestions. For example,
you can refer to the list of potential problems displayed on the back of the
Buyers Guide shown in this brochure. In addition, ask the seller whether you
may have the vehicle inspected by your own mechanic and whether you may take
it on a test drive.
- Private sales usually are not covered
by the "implied warranties" of state law. So, a private sale probably will
be on an "as is" basis, unless your contract with the seller specifically
provides otherwise. If you have a written contract, the seller must live up
to the promises stated in the contract. Depending on its age, the car also
may be covered by a manufacturer's warranty or a separately purchased service
contract. However, warranties and service contracts may not be transferable,
or there may be limitations or costs for a transfer. Before you purchase the
car, ask the seller to let you examine any warranty or service contract on
the vehicle.
- Many states require that dealers,
but not individuals, ensure that their vehicles will pass state inspection
or carry a minimum warranty before they offer them for sale. Ask your state's
attorney general's office or a local consumer protection office about the
requirements on individuals and on dealers in your state.
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