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FTC issues FAQ on revised Used-Car Rule

October 6, 2017
The Federal Trade Commission on Sept. 26 issued a document answering frequently asked questions about the revised Used Car Rule and the revised Buyers Guide that dealers must use. 
The new version of the guide, which the CATA has for members, recommends that consumers get a vehicle history report before buying a used car and that they visit safercar.gov to check for safety recalls.
The final FTC rule, issued in January, permits dealers to use their existing stock of Buyer’s Guides for up to one year (until Jan. 27, 2018). However, if a manufacturer’s warranty is still in effect for a used vehicle and that is disclosed, the following language must follow the "Full/Limited Warranty" disclosure:
 
"(a) ‘’Manufacturer’s Warranty still applies. The manufacturer’s original warranty has not expired on the vehicle;’’ (b) "Manufacturer’s Used Vehicle Warranty Applies;’’ or (c) "Other Used Vehicle Warranty Applies,’’ as applicable, followed by the statement, "Ask the dealer for a copy of the warranty document and an explanation of warranty coverage, exclusions, and repair obligations.’’
The Guide can be hung from the rear-view mirror inside the car or on a side-view mirror outside the car. It also can be placed under a windshield wiper and attached to a side window. 
 
A Guide in a glove compartment, trunk or under the seat is not conspicuous because it is not in plain sight.
 
Dealers who violate the Used Car Rule may be subject to penalties of up to $40,654 per violation in FTC enforcement actions.
 
 

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