- Find
a car that the dealer covers with a warranty by checking the "Buyers
Guide"
posted on used cars. Select
a car with at least a 30-day, 100% warranty under which the dealer
agrees to pay all repair costs for covered items. Avoid "As Is
- No Warranty" cars.
- Choose a safe car. Look for the current safety inspection sticker
required by your state. Check if the manufacturer has recalled
the car for safety defects by searching the U.S. Department of
Transportation's website
for auto recalls, or by calling its toll-free Auto Safety
Hotline (1-800-424-9393). If the car has been recalled, ask the
dealer for proof that the defect has been repaired.
- Check with
your
state motor vehicle department to research the car's
title history. Make sure the car is not a "lemon buy-back," salvaged,
or wrecked car. Get the written mileage disclosure statement required
by federal law from any seller and make sure it matches the odometer
reading on the car. Check the title to the car before you sign.
- Look carefully
at the car in full daylight. Take it for a test drive.
- Ask for the
car's maintenance records, or contact the dealership or repair
shop where most of the repair work was done.
- Talk to previous
owners, especially if the present owner is unfamiliar with the
car's history.
- Get a reputable
mechanic who does not work for the dealer to check it over, and
pay for a diagnostic test. (See the next section, Inspect
Before You Buy)
- Check out
the frequency of repair records for used cars on internet sites
or in "Consumer Reports" magazine, which you can find
at the library.
- Comparison
shop by checking prices at internet sites, in classified newspaper
advertisements, or used car guides (see Getting Your
Price, below).
Inspect
Before You Buy
It is good to
have any used car inspected by an independent mechanic before you
buy it. For about $100 or less, you will get a general indication
of the mechanical condition of the vehicle. 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 determine 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 technicians 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 the following:
- 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 is a record of complaints about
particular facilities.
In case the
dealer will not let you take the car off the lot, perhaps because
of Insurance restrictions, you may be able to find a mobile inspection
service that will go to the dealer. If that is not an option, ask
the dealer to have the car inspected at a facility you designate.
You will have to pay the inspection fee.
Once you have
decided on a mechanical inspector, find out the following:
- Ask what
the inspection includes, how long it takes, and the price. Get
this information in writing.
- Ask the mechanic
for a written report with a cost estimate for all necessary repairs.
Be sure the report includes the vehicle's make, model and VIN.
- Make sure
you understand every item. If you decide to make a purchase offer
to the dealer after considering the inspection's results, you
can use the estimated repair costs to negotiate the price of the
vehicle.
The Buyers
Guide (you will need Acrobat
Reader (available for free) to view or print this form
in .pdf format) lists a car's 14 major systems and some serious
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 different cars or
by different dealers.
Buyers
Guide to Used Cars
The Federal
Trade Commission's Used Car Rule requires dealers to post the Buyers
Guide (you will need Acrobat
Reader (available for free) to view or print this form
in .pdf format) in every used car they offer for sale. This
includes light-duty vans, light-duty trucks, demonstrators, 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.) The Buyers Guide does
not have to be posted on motorcycles and most recreational vehicles.
Also, anyone who sells less than six cars a year does not have to
post the Buyers Guide.
The Buyers Guide
must tell you:
- whether
the vehicle is being sold "as is" or with a warranty (See Warranties
for
more information).
- what percentage
of the repair costs a dealer will pay under the warranty
- that spoken
promises are difficult to enforce
- to get all
promises in writing
- to keep the
Buyers Guide for reference after the sale
- the major
mechanical and electrical systems on the car, including some of
the major problems you should look out for
- to ask to
have the car inspected by an independent mechanic before you buy.
(See the previous section, Inspect Before You Buy)
When you buy
a used car from a dealer, get the original Buyers Guide that
was posted in the vehicle.
- The Guide
must reflect any negotiated changes in warranty coverage.
- It also becomes
part of your sales contract and must override 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.
- 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 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, Massachusetts,
Minnesota, Mississippi, New Jersey, New York, Rhode Island, Vermont,
West Virginia and the District of Columbia, 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.
- 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. (See
Warranties
and
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.
- 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.
- The Buyers
Guide lists an auto's 14 major systems and some serious 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 different cars or by
different dealers.
- 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.
- 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 requirements, such
as posting a Buyers Guide in all the vehicles offered for sale.
- If you
buy a used car and the sales discussion is conducted in Spanish,
you are entitled to see and keep a Spanish-language version of
the Buyers Guide.
- Private sellers
generally are not covered by the Used Car Rule and don't have
to use the Buyers Guide.
Getting
Your Price
Comparison shop.
Check prices at internet sites such as Edmund's,
Kelley Blue Book,
and NADA. Look
at classified newspaper advertisements, or go to your local library
to look at a recent used car guide, such as the NADA Official Used
Car Guide.
Handle your
car trade-in, the used car purchase, and financing as three separate
transactions to get the best deal on each. Get a written price quote
before you talk about your trade-in or dealer financing.
Shop in advance
for the best deal in financing at your credit union, bank or finance
company. (See Financing with
a Loan).
Avoid high-profit,
low-value extras sold by dealers, such as credit Insurance, extended
service contracts, auto club memberships, rust proofing and upholstery
finishes.
Buying
from a Private Individual
An alternative
to buying from a dealer is buying from an individual. You may see
ads in newspapers, on bulletin boards, or on a car. Buying a car
from a private individual 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. (See Buyers Guide,
above) However, you can use the Buyers Guide list 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 warranties" 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 may also be covered
by a manufacturer's warranty or a separately purchased service contract.
However, 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. (See
Warranties
and
Service Contracts)
Many states
do not require individuals to ensure that their vehicles will pass
state inspection or carry a minimum warranty before they offer them
for sale. Ask your State Attorney General's office or local consumer
protection agency about the requirements in your state.
Check with your
state's motor's vehicle department
on what paperwork you will need to register a vehicle.
Make sure the
seller is not a dealer posing as an individual. That might mean
the dealer is trying to evade the law and there may be problems
with the car. Look at the title and registration. Make sure the
seller is the registered owner of the vehicle.
Buying
from a Dealer
Check the complaint
records of car dealers with your state or local consumer protection
agency or Better Business Bureau.
Read the Buyers
Guide sticker required to be displayed in the window of the car.
It gives information on warranties, if any are offered, and provides
other information. See Buyers Guide and
Warranties.
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 for a refund exists
only if the dealer grants this privilege to buyers. Dealers may
describe the right to cancel as a "cooling-off" period, a money-back
guarantee, or a "no questions asked" return policy. Before you purchase
from a dealer, ask about the dealer's return policy, get it
in writing and read it carefully.
In most states,
used cars may be sold "as is." If the "as is" box is checked off
on the Buyers Guide, you have no warranty.
If the "warranty"
box is checked off on the Buyers Guide, ask for a copy of the warranty
and review it before you agree to buy the car. See
Buyers Guide and Warranties.
Some states
have laws giving extra protection to used car buyers. Contact your
state or local consumer protection office to find out your rights.
 
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