Regulatory Review of the Used Motor Vehicle Trade Regulation Rule - Used Car Rule #536945-00010

Submission Number:
James Schutjer
Minnesota Automobile Dealers Association
Initiative Name:
Regulatory Review of the Used Motor Vehicle Trade Regulation Rule - Used Car Rule
The Minnesota Automobile Dealers Association (MADA) is the trade association of 430 franchised new vehicle dealers in Minnesota. Two comments: 1. MADA is concerned about space on the Buyers Guide form. Minnesota Statute Section 325F.662 requires new and used vehicle dealers to warrant many of the used vehicles that they offer for sale. The statute permits a waiver of coverage for certain defects and repair problems if the dealer makes a disclosure on the face of the Buyers Guide and the purchaser circles and signs the disclosure on the Buyers Guide ( Section 325F.662, subd. 4). Attached is correspondence between MADA and the Federal Trade Commission authorizing Minnesota dealers to use a revised Buyers Guide which sets out the systems covered by our law as well as the waiver statement. Appendices A and B to the Notice would probably not accommodate these disclosures. 2. Customers are sometimes confused by the language on the Buyers Guide which describes the Magnuson Moss 90-day look back provision prohibiting disclaimer of implied warranties if a customer purchases a service contract: "If you buy a service contract within ninety days of sale, state law "implied warranties" may give you additional rights." Sometimes a customer elects not to purchase a service contract when they purchase the vehicle but then come back 30 or 60 days later demanding to buy one based on the disclosure on the Buyers Guide. The dealer is not in a position to sell a service contract after the sale is complete and even though the disclosure doesn’t directly provide that the customer has the right, the dealer has a difficult time explaining away the Buyers Guide disclosure.