Starting January 27, 2018, the Federal Trade Commission will require all used automobile dealers to use a revised Buyers Guide. The revised Buyers Guide:
- Changes the description of an “As Is” sale;
- Places boxes on the face of the Buyers Guide that dealers can check to indicate whether a vehicle is covered by a third-party warranty and whether a service contract may be available;
- Provides a box that dealers can check to indicate that an unexpired manufacturer’s warranty applies;
- Adds air bags and catalytic converters to the Buyers Guide’s list of major defects that may occur in used vehicles;
- Adds a statement that directs consumers to obtain a vehicle history report and to check for open recalls. The statement also instructs consumers to:
- visit ftc.gov/usedcars for information on how to obtain a vehicle history report; and
- visit safercar.gov to check for open safety recalls;
- Adds a statement, in Spanish, to the English-language Buyers Guide, advising Spanish-speaking consumers to ask for the Buyers Guide in Spanish if the dealer is conducting the sale in Spanish; and
- Provides a Spanish translation of the statement that dealers may use to obtain a consumer’s acknowledgement of receipt of the Buyers Guide.
(November 10, 2016, FTC Press Release; FTC Approves Final Changes to Used Car Rule.)
The revised Buyers Guide comes in two versions, one which allows the dealer to check the box for an “As Is” sale and another which removes the “As Is” box and replaces it with an “Implied Warranties Only” box. This was done to comply with laws in other states where “As Is” sales are prohibited. Given that the Song-Beverly Consumer Warranty Act allows “As Is” sales in California, dealers in California are likely safe in utilizing the “As Is” version of the Revised Buyers Guide. (Cal. Civ. Code §§ 1791.3 and 1792.4.) The revised Buyers Guide can be found at:
https://www.consumer.ftc.gov/articles/pdf-0083-buyers-guide.pdf
Nothing in this article should be construed as legal advice. If you have any questions, contact a legal professional for legal advice.