FTC Used Car Rule – Part 2

IF YOU CONDUCT A USED CAR TRANSACTION IN SPANISH, you must post a Spanish language Buyers Guide on the vehicle before you display it for sale.

The Buyers Guide has two versions: One says “As Is – No Warranty;” the other says “Implied Warranties Only.”

As Is – No Warranty. If state law allows it, and you choose not to offer a warranty – written or implied – you must use the “Implied Warranties Only” version.

Warranty. If you offer the vehicle with an express warranty, you must check the box next to the heading “Warranty” and complete that section of the Guide. Warranties required by state law must be disclosed in this section. Contact your state Attorney General about state warranty requirements. In some states, use of the As Is – No Warranty Buyers Guide may be legally sufficient to eliminate implied warranties. To determine exactly which version of the Buyers Guide you should use, contact the FTC or your state Attorney General.

You MUST list the percentage of repair costs are covered by the warranty and if a deductible will be charged. You must list the systems that are covered and the length of the warranty for each system. The Rule prohibits the use of shorthand phrases such as “drive train” or “power train” because these phrases are not specifically clear which components are actually included.

If the manufacturers warranty has not expired, check the “Warranty ” box and in the “systems covered/duration” section write: “MANUFACTURERS WARRANTY STILL APPLIES. The disclosure must be stated in this exact language. Using phrases such as “balance of factory warranty” is not sufficient.

You must give the buyer the original copy of the vehicle’s Buyers Guide at the close of the sale. The guide must reflect all final changes. The buyer must sign that they have received a copy of the Buyers Guide with all changes reflected.

Two publications are available to help you comply with these and other federal regulations: A Businessperson’s Guide to Federal Warranty Law and A Legal Supplement to Federal Warranty Law. Both are available from the FTC. Call toll-free 877-FTC-HELP, or write: Consumer Response Center, Federal Trade Commission, Washington, DC 20580.

Buying Used Auto Parts

Buying used auto parts is usually an inexpensive alternative to buying new auto parts from your local car parts retailer or an on-line store. It may take some time and creativity to find the exact part, so be patient as there are many different ways to accomplish this goal. But, they fall into three basic approaches: junk yards, classified ads and on-line stores. Let’s look at each one.

Junk Yards

There is usually one part of the city where most of the salvage yards are located. These yards often sell used auto parts for low prices if you are able to remove the needed part yourself from one of their wrecked cars or trucks. And, you will need your own tools. Each junk yard is different so be flexible and be prepared to negotiate as you may be able to purchase whole assemblies as well as a series of parts. Call in advance about pricing and car/part availability. Lastly, you should verify the terms and conditions of the sale and any return policy. Not everything goes as planned.

Classified Ads

Traditionally, used auto parts could be found in the classified ads section of your local newspaper or grocery store pamphlet/publication. Today, you can add eBay, Craigslist and a few more such websites to this category. Depending on the part, the buyer will need to verify that the current condition will not affect its ability to operate properly as most of these sellers (with the exception of eBay) are anonymous to the buyer. Which means, no track record of their relationship with past buyers. If you are using eBay, be sure to check out the seller’s feedback ratings before buying any used auto part. The feedback ratings of buyers can provide you with insight into a seller’s reputation, reliability and selling history. And return policy.

On-line Stores

This newest method can be a very fast and convenient way to locate and purchase a specific auto part. Prices, descriptions, pictures and expanded details are usually available via a searchable database. Be sure to be creative when entering your search keywords so the search engine will give you the results you are seeking. The more exact the keyword match, the better will be the results.

In today’s marketplace, there are lots of options for used auto parts buyers. Old school and new. With a little effort, the exact part for your car will be available.

How to Sell Your Car Part 2: How to Find Buyers

Today, the preparations are over and you are ready to locate some buyers.

Notice that I said you are ready to “locate buyers” instead of “advertise your car.” This is an important and intentional distinction. There is a big difference between putting a for sale sign in the window and being proactive about selling your vehicle.

“For Sale” signs won’t sell your car. You have to sell your car. To do that, you have to locate a buyer.

The first step in locating buyers is to make yourself easy to find.

Put your car everywhere. eBay, Craigslist, Cars.com, AutoTrader, Twitter, Facebook, your blog, your church bulletin board, your bulletin board at work, the bulletin board at the gym, and on and on.

Many of the listing sights, such as Cars.com, will allow you to print up a really attractive flyer for your listing. It should be in color, have pictures, and have all necessary information including the price you decided on in my previous article on preparing sell your car.

Make sure all of your listings are consistent and put as many pictures up as the site will permit. Make sure you take lots of clear pictures and be prepared to e-mail more as necessary.

The next step in locating buyers is talking to people.

I was shocked that after only a couple of months with a Facebook account, I had over 200 “friends.” Do I really know 200 people? I guess so. You probably do to. Make it your goal that every one of those people will know that you have a car for sale. Every. One.

Even though you put flyers everywhere, remember that flyers aren’t responsible for selling your car either. Putting up flyers isn’t the end goal, selling the car is. So be proactive.

Send out an e-mail blast to your friends with a few moderately sized photos. Talk to everyone at work. Talk to everyone at the gym. Talk to everyone at the church. Don’t be shy.

Ask them, “Did you see my flyer on the bulletin board? I’m selling my 2002 Wrangler, if you know anyone.” That’s it! How much time did that take? Two seconds? No pressure. No sales tactics. And it will be worth while when you hear, “You know, my cousin is looking for one of those. I’ll take him a flyer.”

The final step in locating buyers is following up.

If someone e-mails you, e-mail them back. If someone calls you, call them back. If someone is taking a flyer to their cousin, ask how that went and see if you can get their e-mail to send some more photos.

You don’t have to be obnoxious or annoying, but you also don’t have to wait for someone to beg you for your car before you actually try to sell it.

If you follow these three steps, you shouldn’t have any trouble locating buyers for your well priced, clean, and inspected vehicle.

Next step, what to do once you have a buyer.

Lemon Laws Are Applicable For Cars Available For Resale

Even if your car has become old, you can protect from any damage by getting it insured under Lemon Laws. Generally, used cars are nominated under the Lemon Law. But recently, the government has issued new laws, which covers only new cars under this Law. However, there are certain exceptions to this law.A used car can be covered under Lemon Law only if the owner of a car has documented express warranty, which has details pertaining to the number of years left for the warranty to lapse, and other details specifying whether the warranty of the car has been extended during the purchase, duly certified by the dealer. Having such documented proves will make sure that you are not violating any law and at the same time, your car will be protected under the Lemon Law.Protection for owners having used cars under Lemon LawsOwing to a lot of controversies arising during the purchase of used cars, the governments of many countries have passed legislative laws to protect the consumers against any fraud and to curb consumers problems related to the purchase of used cars.The lemon laws were devised in the public interest. Under this law, a car can be certified based on its condition and mileage. According to the clauses of this law, if a defect is found in the car within the warranty period then the dealer must take the sole responsibility to fix the problem. Even if the problem persists for three times or more, the consumer can either demand his money back or change the car.Other states have also devised laws for the sale of used cars which specify some requirements, including proper inspection and warranty from all the sellers. Until these prerequisites are met by the used car, the owner cannot sell such a car.Protection Consumer Laws to stop fraudulent acts of sale of used carsState protection laws have been enacted by many state legislatures, according to which, a dealer must answer all the queries the customer has before the purchase of the car. If the answers are found to be incorrect after the purchase of the car, the customer has the power to make a claim against the dealership. Some state legislatures also make it mandatory for the dealer to disclose all facts related to the car, even if it is not asked by customers. These facts include whether the car was ever used for rental or demonstration purpose.Thus, if you are on a lookout to buy a used car then follow these guidelines well to avoid being cheated by smart salespersons that trick you to buy a worthless car.