Chicago Automobile Trade Association

New Buyer's Guide, but existing form can still be used till next year

January 27, 2017
There is a new version of the Federal Trade Commission’s Used-Car Buyer’s Guide effective Jan. 27, but are dealers required to use it beginning on Day 1? The answer is yes and no.
The final FTC rule 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.’’
Completion of the revised guide is generally similar to the current guide and the FTC has provided directions and guidance at www.ftc.gov. The most substantial change is the addition of optional checkboxes for disclosing manufacturer and other used-car warranties, such as "certified" used-car warranties. 
When completing the revised Buyers Guide:
A. Dealers should still ensure that the applicable dealer warranty box is checked. Either: 
a. "As-Is" or "Implied Warranties Only" (depending on your state law) or
b. "Dealer Warranty" (along with "Full" or "Limited" as applicable)
B. If another, non-dealer, used-car warranty applies, a dealer may (but is not required to) check the appropriate box for that as well.
The Buyers Guide must be displayed prominently and conspicuously on or in a vehicle when a car is available for sale. This means it must be in plain view and both sides must be visible. 
 
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.
 
The FTC offers further guidance on the matter on its website.
 
 

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