When you’re trying to find your next used vehicle, it’s always a good idea to look for four things. They include the:
– Buyer’s Guide
– Implied Warranty
– As Is – No Warranty
What Do They Each Mean?
Buyer’s Guide – When you’re shopping for your next used vehicle, be sure to see if the Buyer’s Guide sticker is on the car window. The Federal Trade Commission requires that this sticker be on vehicles that are sold by dealers. The Buyer’s Guide will inform you if a service contract is available. It’ll also tell you if the vehicle has a warranty, as is or implied warranty.
Warranty – If the vehicle still has a manufacturer’s warranty on it, you may need to pay a fee to get the coverage so that it becomes a service contract. If the dealer absorbs this fee, the coverage is thought of as a warranty.
Implied Warranty – There are two kinds of implied warranties. Both implied warranties are not written, only verbal and based on the idea that the seller stands behind their product.
When the vehicle is under the “warranty of merchantability”, the seller is promising that the vehicle will do what it’s supposed to. When the car fails to run, the implied warranties law stipulates that the dealer must repair it (unless the vehicle was sold as is) so the purchaser has a working vehicle. If the vehicle falls under the “warranty of fitness for a particular purpose”, it means the purchaser is buying the vehicle on the seller’s advice that it will be fine for certain reasons like trailer hauling.
Under state law, used vehicles are typically covered by implies warranties.
As Is/No Warranty – If you purchase a vehicle that’s as is, it means you are responsible for all the repairs even if the vehicle breaks down after you just buy it. However, if you purchase a dealer service contract within 90 days of the car purchase, your state’s law on implied warranties gives you some additional rights.
There are some states that forbid the sale of “as is” used vehicles. Some states demand the use of certain words to deny implied warranties. Some states have lemon laws for used cars, which means a consumer can get a refund or a replacement if the vehicle they purchased is seriously defective.
Be sure to learn your rights regarding used vehicles by checking with both your local and state consumer protection office or getting in touch with the Attorney General.