Buying a Used Car: Problem Prevention

Spoken Promises
The buyer's guide cautions you not to rely on spoken promises. They are difficult to enforce because there may not be any way for a court to determine with any confidence what was said. Get all promises written into the guide.

Pre-Purchase Independent Inspection
It's best to have any used car inspected by an independent mechanic before you buy it. For about $100 or less, you'll get a general indication of the mechanical condition of the vehicle. An inspection is a good idea even if the car has been "certified" and inspected by the dealer and is being sold with a warranty or service contract. A mechanical inspection is different from a safety inspection. Safety inspections usually focus on conditions that make a car unsafe to drive. They are not designed to determine the overall reliability or mechanical condition of a vehicle.

To find a pre-purchase inspection facility, check your Yellow Pages under "Automotive Diagnostic Service" or ask for referrals. Look for facilities that display certifications like an Automotive Service Excellence (ASE) seal. Certification indicates that some or all of the technicians meet basic standards of knowledge and competence in specific technical areas. Make sure the certifications are current, but remember that certification alone is no guarantee of good or honest work. Also ask to see current licenses if state or local law requires such facilities to be licensed or registered. Check with your state Attorney General's office or local consumer protection agency to find out whether there's a record of complaints about particular facilities.

There are no standard operating procedures for pre-purchase inspections. Ask what the inspection includes, how long it takes, and how much it costs. Get this information in writing.

If the dealer won't let you take the car off the lot, perhaps because of insurance restrictions, you may be able to find a mobile inspection service that will go to the dealer. If that's not an option, ask the dealer to have the car inspected at a facility you designate. You will have to pay the inspection fee.

Once the vehicle has been inspected, ask the mechanic for a written report with a cost estimate for all necessary repairs. Be sure the report includes the vehicle's make, model and VIN. Make sure you understand every item. If you decide to make a purchase offer to the dealer after considering the inspection's results, you can use the estimated repair costs to negotiate the vehicle price.

Vehicle Systems
The buyer's guide lists an auto's 14 major systems and some serious problems that may occur in each. This list may help you and your mechanic evaluate the mechanical condition of the vehicle. The list also may help you compare warranties offered on different cars or by different dealers.

Dealer Identification & Consumer Complaint Info
The back of the buyer's guide lists the name and address of the dealership. It also gives the name and telephone number of the person you should contact at the dealership if you have problems or complaints after the sale.

Optional Signature Line
The dealer may include a buyer's signature line at the bottom of the buyer's guide. If the line is included, the following statement must be written or printed close to it: "I hereby acknowledge receipt of the buyer's guide at the closing of this sale." Your signature means you received the buyer's guide at closing. It does not mean that the dealer complied with other requirements, such as posting a buyer's guide in all the vehicles offered for sale.

Spanish Language Sales
If you buy a used car and the sales discussion is conducted in Spanish, you are entitled to see and keep a Spanish-language version of the buyer's guide.

Private Sales
An alternative to buying from a dealer is buying from an individual. You may see ads in newspapers, on bulletin boards or on a car. Buying a car from a private party is very different from buying a car from a dealer.

Private sellers generally are not covered by the Used Car Rule and don't have to use the buyer's guide. However, you can use the guide's list of an auto's major systems as a shopping tool. You also can ask the seller if you can have the vehicle inspected by your mechanic.

Private sales usually are not covered by the "implied warranties" of state law. That means a private sale probably will be on an "as is" basis, unless your purchase agreement with the seller specifically states otherwise. If you have a written contract, the seller must live up to the promises stated in the contract. The car also may be covered by a manufacturer's warranty or a separately purchased service contract. However, warranties and service contracts may not be transferable, and other limits or costs may apply. Before you buy the car, ask to review its warranty or service contract.

Many states do not require individuals to ensure that their vehicles will pass state inspection or carry a minimum warranty before they offer them for sale. Ask your state Attorney General's office or consumer protection agency about the requirements in your state.

Before You Buy a Used Car
No matter who you buy a used car from, follow these tips to learn as much as you can about the car:

• Examine the car yourself using an inspection checklist. You can find a checklist in many of the magazine articles, books and Internet sites that deal with buying a used car.
• Test drive the car under varied road conditions — on hills, highways and in stop-and-go traffic.
• Ask for the car's maintenance record. If the owner doesn't have copies, contact the dealership or repair shop where the work was done. They may share their files with you.
• Talk to the previous owner, especially if the present owner is unfamiliar with the car's history.
• Have the car inspected by a mechanic you hire.

If You Have Problems
If you have a problem that you think is covered by a warranty or service contract, follow the instructions to get service. If a dispute arises, there are several steps you can take:

• Try to work it out with the dealer. Talk with the salesperson or the owner of the dealership. Many problems can be resolved this way. However, if you believe you're entitled to service, but the dealer disagrees, you can take other steps.

• If your warranty is backed by a car manufacturer, contact the local representative of the manufacturer. The local or zone representative is authorized to adjust and decide about warranty service and repairs to satisfy customers. Some manufacturers are willing to repair certain problems in specific models for free, even if the manufacturer's warranty does not cover the problem. Ask the manufacturer's zone representative or the service department of a franchised dealership that sells your car model if there is such a policy.
  
  
• Contact your local Better Business Bureau, state Attorney General, or the Department of Motor Vehicles. You also might consider using a dispute resolution organization to arbitrate your disagreement if you and the dealer are willing. Under the terms of many warranties, this may be a required first step before you can sue the dealer or manufacturer. Check your warranty to see if this is the case. If you bought your car from a franchised dealer, you may be able to seek mediation through the Automotive Consumer Action Program (AUTOCAP), a dispute resolution program coordinated nationally by the National Automobile Dealers Association and sponsored through state and local dealer associations in many cities. Check with the dealer association in your area to see if they operate a mediation program.
  
  
• If none of these steps is successful, small claims court is an option. Here, you can resolve disputes involving small amounts of money, often without an attorney. The clerk of your local small claims court can tell you how to file a suit and what the dollar limit is in your state.
  
  
• The Magnuson-Moss Warranty Act also may be helpful. Under this federal law, you can sue based on breach of express warranties, implied warranties, or a service contract. If successful, consumers can recover reasonable attorneys' fees and court costs. A lawyer can advise you if this applies.

(Source: www.ftc.gov)