What You Should Know When You Buy A Used Car
by Fraser Wheelock
http://www.fwcar.com
Buying a used car is always a gamble, but knowing your
rights and the seller's responsibilities can help you find
a good deal. The so-called Lemon Laws enacted in various
states hold dealers who sell used cars to certain standards
and guidelines of business behavior. If you're looking for
a used car, it's to your benefit to know what rights the
law in your state gives you.
Until 1975, consumers had little recourse if they purchased
a 'lemon'. There were no laws governing what warranties and
disclosures a dealer had to make when selling a car. With
the passing of the Magnuson-Moss Warranty Act, consumers
gained a powerful tool to help them be certain that the car
they were buying would actually run once they drove it off
the lot.
Disclosures
Any used car dealer that sells more than six vehicles per
year is bound by law to make particular disclosures. These
include all major mechanical systems; any problems that may
be specific to the make and model of the vehicle; any
recalls by the manufacturer; whether the car is being sold
with a warranty or as is.
To protect yourself, make a point of knowing the particular
laws that apply in your state. For instance, many states do
not allow 'as is' used car sales. In states that due, a
dealer may still be bound by an 'implied' warranty, though
the things covered under that warranty may vary from state
to state. In essence, the law assumes that a product, in
this case, a used car, will serve the purpose for which it
was bought.
You have a right to a clear statement of the price of the
car. If you are financing all or part of the vehicle's
price, you should receive a statement that breaks down the
cost into purchase price and finance charges to help you
make your decision.
3. Read the Buyers' Guide for the car you are buying.
Used car dealers ARE required by law to post a Buyer's
Guide in each vehicle that they offer for sale. The Buyer's
guide must make certain disclosures and make some specific
statements. Among those statements and disclosures are:
Most dealers arrange financing through a bank or finance
company. Since the vehicle serves as collateral, a car loan
acquired that way is often easier to get than one through a
conventional bank. If your credit is impeccable, though,
arranging your own financing as above could save you money
in the long run.
You have a right to have the Buyer's Guide to used cars
on display at a dealership available to you. By law, a car
dealer must place the Buyer's Guide for each vehicle in the
vehicle. It must include:
4. Understand the laws of your state regarding warranties.
If a used car is offered for sale 'As Is', the appropriate
box must be checked on the Buyers Guide. 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 of used cars. At least three other states
require other specific disclosures. To find out what
warranties and disclosures apply to used car sales in your
state, contact your state Attorney General.
5. Have the car inspected by an independent mechanic.
Before you finalize any sale, you have a right to have it
inspected by the mechanic of your choice, at your expense.
While there's no 'standard' pre-inspection procedure, your
mechanic should check all the major systems of the car and
provide you with a written evaluation, including any
repairs needed and their estimated cost. If you still want
to buy the car after seeing the inspection report, you can
use the information you learn to negotiate with the dealer
regarding the price of the car.
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