Laws On Buying Used Cars High Quality
First you must choose between buying a new car and buying a used car. A new car may cost more but will come with a longer warranty and no history of abuse or neglect. However, new cars depreciate (lose value) almost immediately when they leave the new car lot, which means that if you can find a well-cared-for used car, it might be a good bargain.
laws on buying used cars
Don't just assume you will finance through the dealer. Sometimes, you can get better financing from your bank or credit union. You should also check your credit score before you go shopping as this can affect the terms such as the interest rate you are offered. By shopping around, you may be able to negotiate a better deal. Note that Texas law sets maximum interest rates for financing used cars. The rates vary according to the age of the car and the amount owed on it.
You must post a Buyers Guide before you display a vehicle for sale or let a customer inspect it for the purpose of buying it, even if the car is not fully prepared for delivery. You also must display a Buyers Guide on used vehicles for sale on your lot through consignment, power of attorney, or other agreement. At public auctions, dealers and the auction company must comply. The Rule does not apply at auctions that are closed to consumers.
Previously titled or not, any vehicle driven for purposes other than moving or test driving is considered a used vehicle, including light-duty vans, light-duty trucks, demonstrators, and program cars that meet the following specifications:
Buying a used car can leave you void of the protections enjoyed by individuals that purchase new cars. However, in an effort to respond to ramped up consumer protection efforts, more and more states are now offering some sort of legal protection for used car buyers that end up with a clunker.
Consumers that purchase used cars enjoy federal law protection. Federal law is applicable to any car dealer or seller who sells more than six used cars a year. Used cars are those that have been driven more than the limited mileage from moving the car from one site to the next, or that is added on during consumer test drives. Wisconsin and Maine are the only states exempt from federal law, because they offer their residents comprehensive used car purchaser protections. Dealers that don't comply with federal laws are subject to civil suit. The following are legal requirements for any used car sold within the U.S.
One way states provide consumer protections is by legislating which types of warranties are available to used car purchasers. If a state allows a dealer to sell a used car without any warranty, then purchasers of any used cars will virtually have no protection if the vehicle they purchase stops working. Some states require used car dealers to provide consumers with a specific warranty that places a time/mileage limit on the warranties coverage. There are four main categories of warranties including:
This type of warranty is only found in states with no used car consumer protection laws (lemon laws). In effect, this is equal to having no warranty at all. After the paperwork is signed, your car could stop working, and you would have little to no recourse. There are a number of states that have outlawed "As Is" car sales altogether, due to the potential for consumer abuse. For the states that do allow "As Is" car sales, the seller must provide you with disclosure documents that state the lack of warranty provided with the vehicle.
Lemon laws are usually only applicable to new cars; however, certain states have enacted lemon laws specifically for used cars. Lemon laws require the dealer to provide a specific type of warranty (i.e. 2 years, 20,000 miles), but also set limits on the number of times a dealer can work on a car under a warranty before a consumer has the right to turn in the car and select another one, or require both parties to go through mediation to determine the best solution to the faulty car issue. In short, these laws offer mandatory dispute resolution, the right to return the car, and often provide coverage for all major systems in the car. States with lemon laws include:
A seller trying to sell a salvage vehicle by concealing prior damage is in effect, title washing. This is done by moving the vehicle through number of states, for the purposes of washing title. Falling victim to this scam can be avoided by making sure to buy used cars from dealers only, or if you are dealing with a private seller, make sure to get a title guarantee in writing.
One final consideration when purchasing a used car is the interest rate you are charged. Each state will have its own usury limits. Usury limits are the maximum amount of interest that a finance company can charge on a loan. To make sure you have the most reliable information, check out your state's usury laws, the various applicable exceptions to the law, and penalties for violations. If you feel that you are paying interest at a rate higher than normal, you should contact the Attorney General's office in your state.
The Used Car Lemon law provides a legal remedy for consumers who are buyers or lessees of used cars that turn out to be lemons. The law requires dealers to give consumers a written warranty. Under this warranty, dealers must repair, free of charge, any defect in covered parts. If the dealer is unable to repair the car after a reasonable number of attempts, the consumer is entitled to a full refund.
Although buying a used car offers many incentives, such as lower auto insurance rates, a more affordable price tag, and extended warranties, the decision to buy a used vehicle as opposed to a new one comes with many caveats. For one, you may need to spend extra funds to make repairs since used cars are often less reliable than their newer counterparts. Also, due to their unreliable nature, used cars tend to have higher interest rates than new vehicles.
Additionally, if you purchase a used vehicle from a private party as opposed to a dealership, then you may not receive an extended warranty or service plan. Ultimately, the decision of whether to buy a new or used vehicle is up to you, but knowing the laws that apply to used cars sales and doing some research on the subject can help you make the right choice.
Both federal and state laws apply to the sale of used cars. Used car laws were created to not only protect consumers, but also to outline the rights and responsibilities of dealerships in selling used cars.
California used car laws are rather specific, which can make the task of interpreting their provisions quite difficult without consulting legal expertise. Therefore, if you have any questions or concerns regarding California used car laws, then you should contact a California attorney for further guidance.
An experienced California attorney will be familiar with the used car laws in your state, can explain what their provisions mean, and can tell you how they affect your issue. Additionally, your attorney can help you file a case, determine what defenses or remedies may be available to you depending on your matter, and can provide representation in court if necessary.
Under the Massachusetts Lemon Laws, you may be eligible for compensation for your used vehicle if it has at least one qualifying defect that impairs its use or safety. The car must have been purchased from a Massachusetts dealer and be used for personal or family purposes (i.e. not used primarily for business). In Massachusetts, a dealer is defined as someone who sells more than 3 cars in a 12-month period, even if they do not have a valid used car dealer license.
In addition, it is important to remember that you always have the right to shop and compare when making any purchase, especially when buying an item as costly as a new or used vehicle. You will find the process much easier if you understand that you can shop and compare not only for your local auto dealers, but also your financing and warranty services as well.
In turn, several lemon laws have been instituted to protect customers from deceptive warranty practices and defective cars. When a widespread manufacturing fault emerges, car companies will recall the model in case of a safety hazard or offer partial compensation to avoid lawsuits or bad press. Dealerships are obligated to fully maintain a vehicle during its warranty period and even replace or refund it if the problem is severe enough.
Maine has enacted a number of laws that deal with consumer protection when it comes to purchasing a used motor vehicle. For example, a used car must always meet the state inspection standards. Further, the inspection sticker must have been put on the vehicle within 60 days of the date of purchase. This law applies even if you are sold a car "as is." If the car violates this inspection warranty, the dealer must repair it, free of charge, so it can pass state inspection. In addition, any used car must come with a completed Used Car Information Act Window Sticker. Failure to do so can be grounds for returning the car and receiving back the purchase price.
Used cars are sold through a variety of outlets: franchise and independent dealers, rental car companies, leasing companies, and used car superstores. You can even buy a used car on the Internet. Ask friends, relatives, and co-workers for recommendations. You may want to call your local consumer protection agency, state Attorney General (AG), and the Better Business Bureau (BBB) to find out if any unresolved complaints are on file about a particular dealer.
Every year, thousands of people buy "previously owned" cars. The majority of used car buyers are satisfied with their purchases. However, used car buyers can run into problems that do not exist in the new car market. Some problems may be similar to those of new car buyers, such as misleading advertising and oral promises. Used car buyers should take special care to "shop smart." This section covers some of the rights and protections you have as a used car consumer in New Hampshire. 041b061a72