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FAQ #24710

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If I buy a used car from a private party rather than a car dealer, does the Federal Trade Commission's "Used Car Rule" apply?

Related resource areas: Personal Finance


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No. The Used Car Rule requires used car dealers to post a Buyers Guide, a document that gives consumers important purchasing and warranty information. The Buyers Guide tells consumers:
* Whether the vehicle is being sold "as is" or with a warranty;
* What percentage of the repair costs a dealer will pay under warranty;
* That oral promises are difficult to enforce;
* To get all promises in writing;
* To keep the Buyers Guide for reference after the sale;
* What major mechanical and electrical systems on the car as well as some of the major problems consumers should look out for; and
* To ask to have the car inspected by an independent mechanic before they buy.

If the car dealership conducts used car transactions in Spanish, a Spanish language Buyers Guide must also be posted. It (they) should be posted prominently and conspicuously on or in a vehicle when a car is available for sale. This means it must be in plain view and both sides must be visible.

Generally, sales from private parties are not covered under the same laws as sales by car dealers. Therefore, be especially careful when buying a vehicle from a private party. Have it carefully checked out by a mechanic of your choice, and consider requesting a vehicle history report such as CarFax.

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