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.