FTC Buyer Guides Rule Change (Update)
The revised Buyers Guide contains a number of changes, many of which were sought by NADA to help dealers. It contains a method for disclosing “certified” and other warranties that does not exist on the current Buyers Guide. It also allows dealers to disclose (if they choose) that the manufacturer’s warranty has not expired on certain components of a vehicle.
Revisions to the Used Car Buyers Guide include the following:
- Changing the description of an “As Is” sale;
- Placing boxes on the front 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;
- Providing a box that dealers can check to indicate that an unexpired manufacturer’s warranty applies;
- Adding air bags and catalytic converters to the Buyers Guide’s list of major defects that may occur in used vehicles;
- Adding 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 safercar.gov to check for open safety recalls. An additional statement in Spanish, to the English-language Buyers Guide, advises Spanish speaking consumers to ask for the Buyers Guide in Spanish if the dealer is conducting the sale in Spanish.
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