The Federal Trade Commission has updated its Used Car Rule by implementing seven revisions that cover a variety of necessary disclosures.
According to the FTC, they sought public comments on a series of proposed changed to the Rule which now requires car dealers to display a window sticker or “Buyers Guide” on used cars offered for sale. The guide disclosed whether the dealer is offering to sell a used car “as is” or with a warranty. If the sale is with a warranty, the Guide disclosed the terms and conditions, including duration of coverage, percentage of total repair costs the dealer will pay, and the vehicle systems the warranty covers. These revisions will likely make it clearer to consumers shopping for used vehicles.
The seven revisions will go into effect on Jan. 27, 2017, but dealers can use their existing supply of sticker forms for an additional year. Those revisions are as follows:
- Changing the description of an “As Is” sale.
- Placing 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.
- Providing a box that dealers can check to indicate 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/used cars for information on obtaining a vehicle history report; and safercar.gov to check for open safety recalls.
- Adding 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.
- Providing a Spanish translation of the statement that dealers may use to obtain a consumer’s acknowledgment of receipt of the Buyers Guide.
The amended Rule permits dealers to use their remaining stock of Buyers Guides for one year after the effective date of the amended Rule.
For more information about the Used Car Rule visit FTC.gov and read Buying a Used Car.
(source: BBB news release)