Compliance Tips for the Used Car Rule and Buyers Guides
The Buyers Guide Rule is designed to ensure that consumers receive important and accurate information about the condition of used vehicles before they buy. The rule requires that dealers complete a Buyers Guide form (or similar document) for any used vehicle they sell or offer for sale. The forms must be completed by the dealer before the sale is consummated and must be displayed on or near the vehicle for at least 10 days before and after you sell it. Learn more information about vehicle compliance in NZ (or any other country) to lessen the chance of running in compliance issues later on.
I. What is the Used Car Rule?
The used car rule is a part of the Consumer Finance Protection Act (CFPA), which was signed into law in 2010. It requires that dealers provide buyers with a used car guide before they sell them any used vehicle that’s been titled, registered, or sold to someone else within the last 36 months.
The purpose of this law is to help consumers make informed purchasing decisions by requiring dealers to disclose certain information about each vehicle they’re buying.
II. When should Buyers Guides be displayed and how long must they be displayed?
For the Buyers Guide to be effective, it needs to be displayed at the time of sale. The Buyer’s Guide must also be available for inspection by the customer for at least 10 days after the sale.
The best way for you to comply with used car rules is by posting your Buyers Guides online! This gives you an easy way to display them and meet all requirements.
III. How must Buyers Guides be displayed?
The Buyer’s Guide must be displayed clearly and conspicuously. The Buyer’s Guide must be placed on the windshield or in the space where the windshield is normally located. It can also be placed in a location that is visible to consumers when they are seated in the vehicle.
IV. Which vehicles are covered by the Used Car Rule?
All vehicles with a gross vehicle weight rating of 8,500 pounds or less are covered by the Used Car Rule. Vehicles with a gross vehicle weight rating greater than 8,500 pounds are exempt from the Used Car Rule.
The following table summarizes these requirements:
V. What information must dealers include in the Buyers Guide?
To meet the Buyers Guide requirements, dealers should provide the following information:
- The vehicle’s mileage, condition, and warranty;
- Whether or not it has been in an accident;
- If it has been flooding-damaged;
- A carfax.com Vehicle History Report (VHR) for all used vehicles over 15,000 miles. This report includes accident and damage history from the last 10 years of your vehicle’s life and is free with every purchase at a participating AutoNation dealership. Learn more about AutoNation’s VHR here.;
- Recall information on applicable safety recalls;
- Title history that shows no liens or other ownership claims have been filed against your vehicle;
If you are interested in learning more about how to avoid being scammed when buying a used car, check out this blog post titled How To Avoid Being Scammed When Buying A Used Car.
Auto Electrical Repair
In addition to the mechanical and physical requirements, your vehicle should have an operational electrical system. According to the service provider of auto electrical repairs in Brisbane, the vehicle should have a battery that holds a charge and can start the engine. It should also have a working ignition system, starter, and charging system. The fuel system must be in working order as well.
Ram Mount Motor
If you’re looking for a mounting solution that can go anywhere, look no further. The RAM Mount Motor attaches to any vehicle and holds your smartphone while you travel. It’s easy to install, compatible with most smartphones, and can be used in the car or on the go.
VI. Does the Used Car Rule apply to used car sales on the internet?
The answer is yes! The Used Car Rule applies to used car sales on the internet, just as it does to other types of used car sales.
Dealers must have a Buyers Guide available for consumers to view before they purchase a vehicle. If you are buying a vehicle from a dealership, make sure you ask for one and read it carefully before you buy. In addition, dealers must provide each consumer who purchases an eligible vehicle with:
- A copy of their state’s Buyers Guide; or
- A document containing all of the information in the state’s Buyers Guide; or
- A paper copy of this guidebook.
VII. How do dealers complete a Buyers Guide when selling a vehicle “as is”?
If a dealer sells a vehicle “as is,” the dealer must still complete a Buyers Guide. This means that the Buyers Guide must include disclosures about any known defects and defects that are not readily observable, such as an odometer reading indicating more miles than driven. In addition, dealers must disclose whether any accident or damage to the vehicle occurred before or after its purchase at retail. For example, if your car was damaged in an accident before you bought it and then repaired by someone other than yourself (or another licensed mechanic), then this information must be disclosed in your Buyers Guide. You should also be aware that some states require dealers who sell used cars “as is” to provide buyers with documentation of what they’ve been working on during their ownership of the car—so ask for these records if they’re available!
If your state requires it: The Consumer Financial Protection Bureau has set out guidelines for how dealers can advertise vehicles without disclosing whether they were salvaged from floodwaters or have been previously declared by insurance companies as total losses due to accidents (also called being “salvage titles”). In short: If you’re trying to sell an older car with visible signs of water damage inside—such as moldy seats or damp carpeting—then mention these facts clearly in all advertisements online so potential buyers know what they’re getting themselves into!
VIII. How do you complete a Buyers Guide when selling a vehicle with a warranty?
When selling a vehicle that has a warranty, it is important to complete the Buyers Guide. The Buyers Guide is an important document that helps consumers evaluate their purchase and notify them of any issues with the vehicle.
You can check if your car has a warranty by looking at the Carfax Vehicle History Report. If there are no records of a warranty on your car, you do not need to complete anything on the Buyers Guide form other than entering all of your information as usual (see Section VI).
This is a big rule and one that dealers need to follow carefully. In addition to the requirements of the Used Car Rule, dealers should also be aware of other consumer protection laws that apply in New York State.