You are here

FTC looks for revised Used Car Buyers Guides

Share this page

The FTC’s Used Car Rule says that dealers have to display a Buyers Guide in every used car they have for sale, and give it to buyers after the sale. The FTC recently checked out how dealers are following that rule in 20 cities, visiting 94 dealerships, and inspecting more than 2325 vehicles.

The Guide, which was updated in 2016, tells you about the major mechanical and electrical systems on the car, including some of the big problems you should look out for. It says whether the vehicle is being sold "as is" or with a warranty, and what percentage of the repair costs a dealer will pay under the warranty. And it tells you to get all promises in writing.

Why check things out now? Well, dealers were required to start using the new version of the Guide on January 28, 2018. And here’s what we found. Of the more than 2325 vehicles inspected, almost half had the revised Buyers Guide. Dealers not displaying the revised Guide received letters warning them to bring their dealerships into compliance.

If you’re buying a used car, it pays to be prepared.

  • Get a vehicle history report before you buy. It can tell you a lot about a used car: ownership history, whether the car was in any accidents, its repair records, and whether it ever was declared as salvage.
  • Consider getting an independent inspection by a mechanic you hire — even if the car has been inspected by the dealer.
  • Figure out how much to pay for a used car. There are commercial services with information about the value and pricing of used vehicles.
  • Look for the Buyers Guide. If the dealer doesn’t display the new Buyers Guide, you might want to shop elsewhere. And please report it to the FTC.

For more information, visit ftc.gov/usedcars.

 

Tagged with: buying, car, warranty
Blog Topics: 
Money & Credit

Comments

Is this Guide available in Spanish? If no, why not?

Please look in this blog post and follow the link to the Buyers Guide.  There is a sentence at the bottom of the English Buyers Guide, written in Spanish. It says: Si el concesionario gestiona la venta en español, pídale una copia de la Guía del Comprador en español. That means " If the dealer manages the sale in Spanish, ask for a copy of the Buyer's Guide in Spanish."

Buying a used car is still a gamble

excellent advice

Used car sales demands are going to go UP as soon as the new tariffs go into effect; that means they will become about 25% or more expensive to buy! And new cars, their price updates will be even worse if I'm reading it all correctly. ANYTHING to do with a car, parts, probably illegally service charges, and a LOT more!

So BEWARE: This is a whole new pie for the scam & sham artists out there selling cars or after-purchase agreements! Same with car insurance: I've seen nothing yet saying that Insurance companies et al are going to pay these new costs if there is any way to get you to believe you're "coverage is fine".
So "buyer beware"needs to be a little higher in vigilance for the foreseeable future.

When I bought the used car in dealership , they told me to buy gap insurance for 800$ and I agreed . After 3 months I had accident and my car was totaled loss , and I wanted to use gap insurance but I saw that in dealership they sold me 2 years warranty for 1360 $ . I understood that when I have signed the papers they just give me warranty to sign not the gap, and they know that you want to sign fast and take the car and because you will not read what you sign. So who can protect me in this situation , they just lie you , they talk about gap insurance but they sold you warranty?

You can report a problem you have with a business to the FTC at FTC.gov/Complaint. The information you give will go into a secure database that the FTC and other law enforcement agencies use for investigations. You could also talk to someone in your state Attorney General's office. Find the Attorney General for your state on this list.

Leave a Comment