Most car dealers
who sell used vehicles must comply with the Federal Trade Commission's
(FTC) Used Car Rule. In fact, car dealers who sell more than five
used vehicles in a 12-month period must comply with the Rule. Banks
and financial institutions are exempt from the Rule, as are businesses
that sell vehicles to their employees, and leasers who sell a leased
vehicle to a lessee, an employee of the lessee, or a buyer found
by the lessee.
The Used Car Rule applies in all states except Maine and Wisconsin.
These two states are exempt because they have similar regulations
that require dealers to post disclosures on used vehicles. The Rule
applies in the District of Columbia, Puerto Rico, Guam, the U.S.
Virgin Islands, and American Samoa.
This booklet defines the Rule's requirements, explains how to prepare
and display the Buyers Guide, and offers a compliance checklist.
You must post a Buyers Guide before you "offer" a used
vehicle for sale. A vehicle is offered for sale when you let a customer
inspect it for the purpose of buying it, even if the car is not
fully prepared for delivery. This requirement also applies to 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:
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A gross vehicle weight rating (GVWR) of less
than 8,500 pounds;
-
A curb weight of less than 6,000 pounds; and
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A frontal area of less than 64 square feet.
Exceptions to the Rule are:
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