How the Law Protects Used Car Buyers

Look for protections from the Federal Trade Commission's Used Car Rule, the federal Odometer Anti-Tampering Law, and state laws on unfair and deceptive business practices.

The Used Car Rule

Anyone who sells more than six used cars in any 12-month period is a dealer and is required to post a "Buyers Guide" on the side window of cars for sale. This Buyers Guide must state:

That the buyer is entitled to get all the seller's promises in writing

Whether the car is covered by a warranty and, if so, how long it is for and the systems if covers as well as whether the buyer will be expected to bear any costs for parts or labor.

Whether the car is being sold "as is" with no written or implied warranties

That the buyer should remember to ask the seller to allow an independent mechanic to inspect the car before purchase

A list of major defects that can occur in used cars generally

The name, address, and telephone number of the dealer and the name of the company person to contact with complaints

Information provided on the Buyers Guide becomes a part of your sales agreement and takes precedence in case of contradictions between the guide and a term of the contract; dealers who fail to provide a Buyers Guide can be charged with violating federal law.The Odometer Anti-Tampering Law

This law requires anyone selling a used car, including a private party, to provide the buyer with a signed odometer statement on request. This statement must disclose...

The odometer reading at the time of the sale

Whether the reading is accurate or is inaccurate (because the odometer was replaced or because the mileage exceeds the maximum that the odometer will show), or

If the seller cannot say whether or not the mileage is accurate.Refusing to provide an odometer statement or making a false statement is a violation of federal law. You may be able to detect a false reading if the numbers are misaligned; the cable has been tampered with, or if the vehicle wear is excessive when compared to the reading. Violators are subject to fine or imprisonment, or both.

Unfair and Deceptive Practices