Dealers have to display a Buyers Guide in every used car they have for sale, and give it to buyers after the sale, according to the Federal Trade Commission’s updated Used Car Rule. The FTC recently checked out how dealers are following that rule in 20 cities, visiting 94 dealerships, and inspecting more than 2,325 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 are agencies checking out used cars now? Dealers were required to start using the new version of the guide on Jan. 28, said Colleen Tressler, Consumer Education Specialist for the FTC.
Of the more than 2,325 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, use these tips:
- Get a vehicle history report before you buy. It can give you good information about a used car: ownership history, whether the car was in any accidents, its repair records, and whether it 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 it, you might want to shop elsewhere. And, be sure to report it to the FTC.
The FTC’s partners in the enforcement action included the:
- Motor vehicles departments for California, Ohio, and Texas
- District attorney’s offices for Los Angeles, Santa Clara, Contra Costa, and San Mateo counties
- Florida Bureau of Dealer Services
- Consumer affairs department for New York City and Cuyahoga County, Ohio
- Chicago Department of Business Affairs and Consumer Protection
- Washington State Office of the Attorney General.
For more information, visit ftc.gov/usedcars.
