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Buying A Used Car: A Consumer Guide From The Federal Trade Commission

This document provides guidance on buying a used car, including tips for doing research beforehand to save money. It recommends learning about car models, options, prices, and repair costs by reading ads and publications. The document also outlines factors to consider when financing a used car purchase, such as loan terms, payment schedules, annual percentage rates, and understanding exactly what you are agreeing to in the loan documents. Taking time for homework on cars and financing options can help buyers get the best deal.

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0% found this document useful (0 votes)
101 views20 pages

Buying A Used Car: A Consumer Guide From The Federal Trade Commission

This document provides guidance on buying a used car, including tips for doing research beforehand to save money. It recommends learning about car models, options, prices, and repair costs by reading ads and publications. The document also outlines factors to consider when financing a used car purchase, such as loan terms, payment schedules, annual percentage rates, and understanding exactly what you are agreeing to in the loan documents. Taking time for homework on cars and financing options can help buyers get the best deal.

Uploaded by

aaalim
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 20

Buying a

Used Car
LE
SA

A Consumer Guide from the


Federal Trade Commission
Buying a
Used Car

FEDERAL TRADE COMMISSION ftc.gov

1-877-FTC-HELP FOR THE CONSUMER


B efore you start shopping for a car, you’ll need to do some
homework. Spending time now may save you serious money
later. Think about your driving habits, your needs, and your bud-
get. You can learn about car models, options, and prices by read-
ing newspaper ads, both display and classified. There is a wealth
of information about used cars on the Internet: enter “used car” Looking for a
as the key words and you’ll find additional information on how
to buy a used car, detailed instructions for conducting a pre-pur-
used car? Start
chase inspection, and ads for cars available for sale, among other
information. Libraries and book stores also have publications
by doing some
that compare car models, options, and costs, and offer informa- homework.
tion about frequency-of-repair records, safety tests, and mileage.
Many of these publications have details on the do’s and don’ts of What you learn
buying a used car.
now may save
Once you’ve narrowed your car choices, research the frequen-
cy of repair and maintenance costs on the models in auto-related you serious
consumer magazines. The U.S. Department of Transportation’s
Vehicle Safety Hotline (1-888-327-4236) and website money later.
www-odi.nhtsa.dot.gov gives information on recalls.

PAYMENT OPTIONS
You have two choices: pay in full or finance over time. If you
finance, the total cost of the car increases. That’s because you’re
also paying for the cost of credit, which includes interest and
other loan costs. You’ll also have to consider how much you can
put down, your monthly payment, the length of the loan, and the
annual percentage rate (APR). Keep in mind that annual percent-
age rates usually are higher and loan periods generally are shorter
on used cars than on new ones.

Dealers and lenders offer a variety of loan terms and payment


schedules. Shop around, compare offers, and negotiate the best
deal you can. Be cautious about advertisements offering financing
to first-time buyers or people with bad credit. These offers often
require a big down payment and a high APR. If you agree to fi-
nancing that carries a high APR, you may be taking a big risk. If
you decide to sell the car before the loan expires, the amount you
receive from the sale may be far less than the amount you need to
pay off the loan. If the car is repossessed or declared a total loss
because of an accident, you may be obligated to pay a consider-
able amount to repay the loan even after the proceeds from the
sale of the car or the insurance payment have been deducted. If
your budget is tight, you may want to consider paying cash for a
less expensive car than you first had in mind.

1
If you decide to finance, make sure you understand the fol-
lowing aspects of the loan agreement before you sign any docu-
ments:
 the exact price you’re paying for the vehicle;

S GUID
E g. Keep
this form.
 the amount you’re financing;
BUYER
in writin
promises
to put all
the dealer
ce. Ask
lt to enfor _____
are difficu ______
______
en promises ______
______
T: Spok ______
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VIN NUMB
ER
IMPORTAN ______
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 the finance charge (the dollar amount the credit will cost you);
______ YEAR
______
______ L
______ MODE
______
______
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______ MAKE
LE
VEHIC _____
______
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NTY
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repairs
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AS IS
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ERED: ________ __
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 the number and amount of payments; and


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SER
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“implied , deductib TRACT.
warrantie le, price A serv ______ ______ _________ _________ ____
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PRE
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additionns. If you

DEALER SALES
MECHAN CHASE lable ______ ___
IC EITH INSPEC al righ buy a servat an extr ______ ____
ER ON TION: ts. ice cont a charge ____
SEE OR OFF ASK THE ract with on this
THE vehi
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Used cars are sold through a variety of outlets: franchise and in-
dependent dealers, rental car companies, leasing companies, and
used car superstores. You can even buy a used car on the Inter-
net. Ask friends, relatives, and co-workers for recommendations.
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
The ­Federal particular dealer.

Trade Some dealers are attracting customers with “no-haggle pric-


es,” “factory certified” used cars, and better warranties. Con-
­Commission’s sider the dealer’s reputation when you evaluate these ads.

Used Car 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
Rule requires for a refund exists only if the dealer grants this privilege to buy-
ers. Dealers may describe the right to cancel as a “cooling-off”
­dealers to post period, a money-back guarantee, or a “no questions asked” return
a Buyers Guide policy. Before you purchase from a dealer, ask about the dealer’s
return policy, get it in writing, and read it carefully.
in every used
The Federal Trade Commission’s (FTC) Used Car Rule re-
car they offer quires dealers to post a Buyers Guide in every used car they offer
for sale. This includes light-duty vans, light-duty trucks, dem-
for sale. onstrators, 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.

2
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:


 whether the vehicle is being sold “as is” or with a warranty;
“As Is —
 what percentage of the repair costs a dealer will pay No Warranty”
under the warranty;
means that
 that spoken promises are difficult to enforce;
the dealer
 to get all promises in writing;
 to keep the Buyers Guide for reference after the sale;
assumes no
 the major mechanical and electrical systems on the car, in- ­responsibility
cluding some of the major problems you should look out for;
and
to fix a
­ nything
 to ask to have the car inspected by an independent mechanic that goes
before you buy.
wrong after the
When you buy a used car from a dealer, get the original Buy- sale.
ers 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.

As Is — No Warranty
When the dealer offers a vehicle “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 STATE
the promise is written on the Buyers Guide. Otherwise, you may
have a hard time getting the dealer to make good on his word.
Some states, including Connecticut, Kansas, Maine, Maryland,
ABC 123
Massachusetts, Minnesota, Mississippi, New Jersey, New York,
Rhode Island, Vermont, West Virginia, and the District of Co-
lumbia, don’t allow “as is” sales for many used vehicles.

Three states — Louisiana, New Hampshire, and Washington


— require different disclosures than those on the Buyers Guide.
If the dealer fails to provide proper state disclosures, the sale is
not “as is.” To find out what disclosures are required for “as is”
sales in your state, contact your state Attorney General.
3
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. There is no specified time period for 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
If you have a defect that existed at the time of sale or not. As a result, a deal-
er’s liability is judged case by case.
written
Warranty of Fitness for a Particular Purpose
warranty that A warranty of fitness for a particular purpose applies when you
buy a vehicle based on the dealer’s advice that it is suitable for
doesn’t cover a particular use. For example, a dealer who suggests you buy a
specific vehicle for hauling a trailer in effect is promising that the
your problems, vehicle will be suitable for that purpose.
you still may If you have a written warranty that doesn’t cover your prob-
have coverage lems, you still may have coverage through implied warranties.
That’s because when a dealer sells a vehicle with a written war-
through ranty or service contract, implied warranties are included auto-
matically. The dealer can’t delete this protection. Any limit on an
implied implied warranty’s time must be included on the written war-
ranty.
warranties.
In states that don’t allow “as is” sales, an “Implied Warran-
ties 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 war-
ranty.

4
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 Warran-
ties Only” disclosure is on page 13.

Dealers who offer a written warranty must complete the war-


ranty section of the Buyers Guide. Because terms and conditions
You have the
vary, it may be useful to compare and negotiate coverage. right to see
Dealers may offer a full or limited warranty on all or some a copy of
of a vehicle’s systems or components. Most used car warranties
are limited and their coverage varies. A full warranty includes the the ­dealer’s
following terms and conditions:
 Anyone who owns the vehicle during the warranty period is ­warranty ­before
entitled to warranty service.
you buy.
 Warranty service will be provided free of charge, including
such costs as removing and reinstalling a covered system.
 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.
 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.
 Implied warranties have no time limits.

If any of these statements don’t apply, the warranty is limited.

A full or limited warranty doesn’t have to cover the entire Warranty


vehicle. The dealer may specify that only certain systems are cov-
ered. 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:
 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 . . .”;
 the specific parts and systems — such as the frame, body, or
brake system — that are covered by the warranty. The back

5
of the Buyers Guide lists the major systems where problems
may occur;
 the warranty term for each covered system. For example, “30
days or 1,000 miles, whichever comes first”; and
 whether there’s a deductible and, if so, how much.

You have the right to see a copy of the dealer’s warranty


before you buy. Review it carefully to determine what is cov-
ered. 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 informa-
tion. Then check out the third-party company with your local Bet-
ter 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
Warranties the dealer for the car’s warranty documents. Verify the informa-
tion (what’s covered, expiration date/miles, and necessary paper-
are included work) by calling the manufacturer’s zone office. Make sure you
in the price have the Vehicle Identification Number (VIN) when you call.

of a p ­ roduct. Service Contracts


­Service Like a warranty, a service contract provides repair and/or main-
tenance for a specific period. But warranties are included in the
­contracts cost price of a product, while service contracts cost extra and are sold
separately. To decide if you need a service contract, consider
extra and whether:

are sold  the service contract duplicates warranty coverage or offers


protection that begins after the warranty runs out. Does the
separately. service contract extend beyond the time you expect to own the
car? If so, is the service contract transferable or is a shorter
contract available?
 the vehicle is likely to need repairs and their potential costs.
You can determine the value of a service contract by figuring
whether the cost of repairs is likely to exceed the price of the
contract.
6
 the service contract covers all parts and systems. Check out
all claims carefully. For example, “bumper to bumper” cov-
erage may not mean what you think.
 a deductible is required and, if so, the amount and terms.
 the contract covers incidental expenses, such as towing and
rental car charges while your car is being serviced.
 repairs and routine maintenance, such as oil changes, have to A mechanical
be done at the dealer.
inspection is
 there’s a cancellation and refund policy for the service con-
tract, and whether there are cancellation fees. different
 the dealer or company offering the service contract is repu- from a safety
table. Read the contract carefully to determine who is legally
responsible for fulfilling the terms of the contract. Some deal- ­inspection.
ers sell third-party service contracts.

The dealer must check the appropriate box on the Buyers


Guide if a service contract is offered, except in states where
service contracts are regulated by insurance laws. If the Guide
doesn’t include a service contract reference and you’re interested
in buying one, ask the salesperson for more information.

If you buy a service contract from the dealer within 90 days


of buying a used vehicle, federal law prohibits the dealer from
eliminating implied warranties on the systems covered in the
contract. For example, if you buy a car “as is,” the car normally
is not covered by implied warranties. But if you buy a service
contract covering the engine, you automatically get implied war-
ranties on the engine. These may give you protection beyond the
scope of the service contract. Make sure you get written confir-
mation that your service contract is in effect.

Spoken Promises
The Buyers Guide cautions you not to rely on spoken promises.
They are difficult to enforce because there may not be any way
for a court to determine with any confidence what was said. Get
all promises written into the Guide.

Pre-Purchase Independent Inspection


It’s best to have any used car inspected by an independent me-
chanic before you buy it. For about $100 or less, you’ll get a
general indication of the mechanical condition of the vehicle.

7
An inspection is a good idea even if the car has been “certified”
and inspected by the dealer and is being sold with a warranty
or service contract. A mechanical inspection is different from a
safety inspection. Safety inspections usually focus on conditions
that make a car unsafe to drive. They are not designed to deter-
mine the overall reliability or mechanical condition of a vehicle.

To find a pre-purchase inspection facility, check your Yellow


Pages under “Automotive Diagnostic Service” or ask friends,
relatives, and co-workers for referrals. Look for facilities that
display certifications like an Automotive Service Excellence
(ASE) seal. Certification indicates that some or all of the tech-
nicians meet basic standards of knowledge and competence in
specific technical areas. Make sure the certifications are current,
but remember that certification alone is no guarantee of good or
honest work. Also ask to see current licenses if state or local law
requires such facilities to be licensed or registered. Check with
your state Attorney General’s office or local consumer protection
agency to find out whether there’s a record of complaints about
particular facilities.

There are no standard operating procedures for pre-purchase


inspections. Ask what the inspection includes, how long it takes,
and how much it costs. Get this information in writing.
The Buyers
If the dealer won’t let you take the car off the lot, perhaps
Guide lists an because of insurance restrictions, you may be able to find a mo-
bile inspection service that will go to the dealer. If that’s not an
auto’s 14 major option, ask the dealer to have the car inspected at a facility you
designate. You will have to pay the inspection fee.
systems and
Once the vehicle has been inspected, ask the mechanic for a
some serious written report with a cost estimate for all necessary repairs. Be
sure the report includes the vehicle’s make, model, and VIN.
problems that Make sure you understand every item. If you decide to make a
may occur in purchase offer to the dealer after considering the inspection’s re-
sults, you can use the estimated repair costs to negotiate the price
each. of the vehicle.

Vehicle Systems
The Buyers Guide lists an auto’s 14 major systems and some seri-
ous problems that may occur in each. This list may help you and
your mechanic evaluate the mechanical condition of the vehicle.
The list also may help you compare warranties offered on differ-
ent cars or by different dealers.

8
Dealer Identification & Consumer Complaint Information
The back of the Buyers Guide lists the name and address of the
dealership. It also gives the name and telephone number of the
person you should contact at the dealership if you have problems
or complaints after the sale.

Optional Signature Line


The dealer may include a buyer’s signature line at the bottom of
the Buyers Guide. If the line is included, the following statement
must be written or printed close to it: “I hereby acknowledge
receipt of the Buyers Guide at the closing of this sale.” Your
signature means you received the Buyers Guide at closing. It does
not mean that the dealer complied with the Rule’s other require-
ments, such as posting a Buyers Guide in all the vehicles offered
for sale. Private sellers
generally are
Spanish Language Sales
If you buy a used car and the sales discussion is conducted in
not covered by
Spanish, you are entitled to see and keep a Spanish-language ver-
sion of the Buyers Guide.
the Used Car
Rule.
PRIVATE SALES
An alternative to buying from a dealer is buying from an indi-
vidual. You may see ads in newspapers, on bulletin boards, or on
a car. Buying a car from a private party is very different from
buying a car from a dealer.
 Private sellers generally are not covered by the Used Car Rule
and don’t have to use the Buyers Guide. However, you can
use the Guide’s list of an auto’s major systems as a shopping
tool. You also can ask the seller if you can have the vehicle
inspected by your mechanic.
 Private sales usually are not covered by the “implied war-
ranties” of state law. That means a private sale probably will
be on an “as is” basis, unless your purchase agreement with
the seller specifically states otherwise. If you have a written
contract, the seller must live up to the promises stated in the
contract. The car also may be covered by a manufacturer’s
warranty or a separately purchased service contract. Howev-
er, warranties and service contracts may not be transferable,
and other limits or costs may apply. Before you buy the car,
ask to review its warranty or service contract.

9
 Many states do not require individuals to ensure that their
vehicles will pass state inspection or carry a minimum war-
ranty before they offer them for sale. Ask your state Attorney
General’s office or local consumer protection agency about
the requirements in your state.

BEFORE YOU BUY A USED CAR


Whether you buy a used car from a dealer, a co-worker, or a
neighbor, follow these tips to learn as much as you can about the
car:
 Examine the car yourself using an inspection checklist. You
can find a checklist in many of the magazine articles, books,
and Internet sites that deal with buying a used car.
 Test drive the car under varied road conditions — on hills,
highways, and in stop-and-go traffic.
 Ask for the car’s maintenance record. If the owner doesn’t
have copies, contact the dealership or repair shop where most
of the work was done. They may share their files with you.
 Talk to the previous owner, especially if the present owner is
unfamiliar with the car’s history.
If you have
 Have the car inspected by a mechanic you hire.
problems, first
try to work IF YOU HAVE PROBLEMS
them out with If you have a problem that you think is covered by a warranty or
service contract, follow the instructions to get service. If a dis-
the dealer. pute arises, there are several steps you can take:
 Try to work it out with the dealer. Talk with the salesperson
or, if necessary, the owner of the dealership. Many problems
can be resolved at this level. However, if you believe you’re
entitled to service, but the dealer disagrees, you can take
other steps.
 If your warranty is backed by a car manufacturer, contact the
local representative of the manufacturer. The local or zone
representative is authorized to adjust and decide about war-
ranty service and repairs to satisfy customers. Some manufac-
turers also are willing to repair certain problems in specific
models for free, even if the manufacturer’s warranty does not
cover the problem. Ask the manufacturer’s zone representa-
tive or the service department of a franchised dealership that
sells your car model whether there is such a policy.

10
 Contact your local Better Business Bureau, state Attorney
General, or state Department of Motor Vehicles. You also
might consider using a dispute resolution organization to
arbitrate your disagreement if you and the dealer are willing. Check
Under the terms of many warranties, this may be a required
first step before you can sue the dealer or manufacturer. out these
Check your warranty to see if this is the case. If you bought
your car from a franchised dealer, you may be able to seek
­publications
mediation through the Automotive Consumer Action Program from the FTC:
(AUTOCAP), a dispute resolution program coordinated na-
tionally by the National Automobile Dealers Association and  Auto Service
sponsored through state and local dealer associations in many ­Contracts
cities. Check with the dealer association in your area to see if
they operate a mediation program.
 Buying a New
Car
 If none of these steps is successful, small claims court is
an option. Here, you can resolve disputes involving small  Car Ads:
amounts of money, often without an attorney. The clerk of ­Reading
your local small claims court can tell you how to file a suit ­Between the
and what the dollar limit is in your state. Lines
 The Magnuson-Moss Warranty Act also may be helpful. Un-  Taking the Scare
der this federal law, you can sue based on breach of express Out of Auto
warranties, implied warranties, or a service contract. If suc- ­Repair
cessful, consumers can recover reasonable attorneys’ fees and
other court costs. A lawyer can advise you if this law applies.

The FTC works for the consumer to prevent fraudulent,


deceptive, and unfair business practices in the marketplace and
to provide information to help consumers spot, stop, and avoid
them. To file a complaint or to get free information on con-
sumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP
(1‑877‑382‑4357); TTY: 1-866-653-4261. The FTC enters Inter-
net, telemarketing, identity theft, and other fraud-related com-
plaints into Consumer Sentinel, a secure online database available
to hundreds of civil and criminal law enforcement agencies in the
U.S. and abroad.

ftc.gov
1-877-FTC-HELP

11
Front Side of Buyers Guide

Be wary
if a BUYERS GUIDE
IMPORTANT: Spoken promises are difficult to enforce. Ask the dealer to put all promises in writing. Keep this form.
­dealer
won’t put
___________________________________________________________________________________________________________

promises
VEHICLE MAKE MODEL YEAR VIN NUMBER

in _____________________________________________________
DEALER STOCK NUMBER (Optional)
writing.
WARRANTIES FOR THIS VEHICLE:

AS IS - NO WARRANTY
YOU WILL PAY ALL COSTS FOR ANY REPAIRS. The dealer assumes no responsibility for any repairs regardless of
any oral statements about the vehicle.

WARRANTY
FULL LIMITED WARRANTY. The dealer will pay __­­__% of the labor and _­___% of the parts for the covered
systems that fail during the warranty period. Ask the dealer for a copy of the warranty document for
a full explanation of warranty coverage, exclusions, and the dealer’s repair obligations. Under state
law, “implied warranties” may give you even more rights.

SYSTEMS COVERED: DURATION:


______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
_ ____________________________________

SERVICE CONTRACT. A service contract is available at an extra charge on this vehicle. Ask for details as to
coverage, deductible, price, and exclusions. If you buy a service contract within 90 days of the time of sale, state law
“implied warranties” may give you additional rights.

PRE PURCHASE INSPECTION: ASK THE DEALER IF YOU MAY HAVE THIS VEHICLE INSPECTED BY YOUR
MECHANIC EITHER ON OR OFF THE LOT.

SEE THE BACK OF THIS FORM for important additional information, including a list of some major defects that may
occur in used motor vehicles.

An independent inspection before you


buy can tell you if problems exist.
12
This Buyers Guide, with the paragraph about
“Implied Warranties Only,” should be used in states
that do not allow “as is” sales. (see p.3)

BUYERS GUIDE
IMPORTANT: Spoken promises are difficult to enforce. Ask the dealer to put all promises in writing. Keep this form.


___________________________________________________________________________________________________________
VEHICLE MAKE MODEL YEAR VIN NUMBER

_____________________________________________________
DEALER STOCK NUMBER (Optional)

WARRANTIES FOR THIS VEHICLE:

IMPLIED WARRANTIES ONLY


This means that the dealer does not make any specific promises to fix things that need repair when you buy the
vehicle or after the time of sale. But, state law “implied warranties” may give you some rights to have the dealer take
care of serious problems that were not apparent when you bought the vehicle.

WARRANTY
FULL LIMITED WARRANTY. The dealer will pay __­­__% of the labor and _­___% of the parts for the covered
systems that fail during the warranty period. Ask the dealer for a copy of the warranty document for
a full explanation of warranty coverage, exclusions, and the dealer’s repair obligations. Under state
law, “implied warranties” may give you even more rights.

SYSTEMS COVERED: DURATION:


______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
______________________________________ _ __________________________________
_ ____________________________________

SERVICE CONTRACT. A service contract is available at an extra charge on this vehicle. Ask for details as to
coverage, deductible, price, and exclusions. If you buy a service contract within 90 days of the time of sale, state law
“implied warranties” may give you additional rights.

PRE PURCHASE INSPECTION: ASK THE DEALER IF YOU MAY HAVE THIS VEHICLE INSPECTED BY YOUR
MECHANIC EITHER ON OR OFF THE LOT.

SEE THE BACK OF THIS FORM for important additional information, including a list of some major defects that may
occur in used motor vehicles.

13
The back of the Buyers Guide alerts you to
the problems that may occur in used vehicles.

Below is a list of some major defects that may occur in used motor vehicles.

Frame & Body Brake System


Frame-cracks, corrective welds, or rusted through Failure warning light broken
Dog tracks—bent or twisted frame Pedal not firm under pressure (DOT spec.)
Not enough pedal reserve (DOT spec.)
Engine Does not stop vehicle in straight line (DOT spec.)
Oil leakage, excluding normal seepage Hoses damaged
Cracked block or head Drum or rotor too thin (Mfgr. Specs)
Belts missing or inoperable Lining or pad thickness less than 1/32 inch
Knocks or misses related to camshaft lifters and Power unit not operating or leaking
push rods Structural or mechanical parts damaged
Abnormal exhaust discharge
Steering System
Transmission & Drive Shaft Too much free play at steering wheel (DOT specs.)
Improper fluid level or leakage, excluding normal Free play in linkage more than 1/4 inch
seepage Steering gear binds or jams
Cracked or damaged case which is visible Front wheels aligned improperly (DOT specs.)
Abnormal noise or vibration caused by faulty Power unit belts cracked or slipping
transmission or drive shaft Power unit fluid level improper
Improper shifting or functioning in any gear
Manual clutch slips or chatters Suspension System
Ball joint seals damaged
Differential Structural parts bent or damaged
Improper fluid level or leakage excluding normal Stabilizer bar disconnected
seepage Spring broken
Cracked of damaged housing which is visible Shock absorber mounting loose
Abnormal noise or vibration caused by faulty Rubber bushings damaged or missing
differential Radius rod damaged or missing
Shock absorber leaking or functioning improperly
Cooling System
Leakage including radiator Tires
Improperly functioning water pump Tread depth less than 2/32 inch
Sizes mismatched
Electrical System Visible damage
Battery leakage
Improperly functioning alternator, generator, Wheels
battery, or starter Visible cracks, damage or repairs
Mounting bolts loose or missing
Fuel System
Visible leakage Exhaust System
Leakage
Inoperable Accessories
Gauges or warning devices
Air conditioner
Heater & Defroster

__________________________________________________________________________________________________
DEALER

__________________________________________________________________________________________________
ADDRESS

__________________________________________________________________________________________________

__________________________________________________________________________________________________
SEE FOR COMPLAINTS

IMPORTANT: The information on this form is part of any contract to buy this vehicle. Removal of this label
before consumer purchase (except for purpose of test-driving) is a violation of federal law (16 C.F.R. 455).

14
Federal Trade Commission
Bureau of Consumer Protection
Division of Consumer and Business Education
June 2008
SOLD

FEDERAL TRADE COMMISSION ftc.gov

1-877-FTC-HELP FOR THE CONSUMER

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