FTC approves final changes to the Used Car Rule

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The FTC’s Used Car Rule has been the law of the land since 1985. It requires used car dealers to post a Buyers Guide on cars they offer for sale. The Guide gives customers important warranty and other information to help them make informed buying decisions. After asking for public comments, the FTC has made some changes to the Buyers Guide that every used car dealer needs to know about.

The changes include adding a statement to the Guide that tells consumers to get a vehicle history report and to check for open recalls. The Guide also now tells consumers to visit ftc.gov/usedcars for information on how to get a vehicle history report and to visit safercar.gov to check for open safety recalls.

Air bags and catalytic converters have been added to the Buyers Guide’s list of major defects that may occur in used vehicles. And let’s not forget warranties, an important selling point for you and cost-saving item for buyers. The updated Buyers Guide lets you check boxes to indicate whether a vehicle is covered by a third-party warranty and whether a service contract may be available. There’s also a box that tells shoppers whether an unexpired manufacturer’s warranty applies.

You can download the updated Buyers Guides from the FTC’s Automobiles page, designed with dealers in mind. The amended Rule also lets dealers use their remaining stock of Buyers Guides until January 27, 2018 – one year after its effective date.

Compliance is key to good business practices and your reputation. To learn more about your responsibilities, please see the updated Dealer’s Guide to the Used Car Rule. It defines the Rule’s requirements, explains how to prepare and display the Buyers Guide, and offers a compliance checklist.

Comments

This new rules applied to the 50 estate and territories (Puerto Rico) ?

the systems covered section is very small and it is been the case in the past that "engine, transmission and drive train" was not sufficient verbiage, and that the details need to be spelled out like "pistons, seals, crank shaft, etc" there is simply not enough space for this data to fit in, has the requirement for details been reduced?

Consumer signature no longer required?

Regarding the Buyer Guide, if a vehicle dealership has cars on his lot that are considered "wholesale", (vehicles traded or sold to other dealers) but are accessible to the general public, and would be sold to a consumer if a deal was agreed upon, is the dealer required to post the buyer guide in those vehicles?

When buying a used car, who is responsible for repairs when a recall was issued but never done? GMC says it is not their problem and the dealer says it is not his problem. I have had this car for under a year.

You can get information about recalls on the National Highway Traffic Safety Administration (NHTSA) website at NHTSA.gov/Recalls. The NHTSA says:

"A recall is issued when a manufacturer or NHTSA determines that a vehicle, equipment, car seat, or tire creates an unreasonable safety risk or fails to meet minimum safety standards. Most decisions to conduct a recall and remedy a safety defect are made voluntarily by manufacturers prior to any involvement by NHTSA. Manufacturers are required to fix the problem by repairing it, replacing it, offering a refund, or in rare cases repurchasing the vehicle. Using our VIN lookup tool, you can access recall information provided by the manufacturer conducting the recall which may be not posted yet on NHTSA’s site."

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