Laws for Selling a Car
Consumers and businesses who sell cars in the U.S. must abide by laws that regulate car sales. The laws, passed at varying levels of government, regulate all aspects of the car sales process, beginning with information provided about a car before the sale and continuing to reporting about the sale after it is complete.
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Significance
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Reuters reports that the auto sector accounts for four to five percent of the U.S. gross domestic product (GDP). Activity in the auto industry can therefore have a measurable, direct impact on the U.S. economy, and laws such as those regulating car sales can have a significant financial impact.
Function
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Laws governing car sales serve different functions. Some laws, such as so-called "lemon laws," provide a measure of protection to consumers, as do laws that govern the accuracy of information auto manufacturers provide to consumers about a car's performance and safety. Different laws, such as those related to taxes and to automobile title transfers and other records, mandate different types of payments and reporting to appropriate governmental bodies.
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Types
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Different types of laws that regulate car sales apply at different levels of governmental oversight. The federal government, state governments and even local governments such as cities and municipalities pass laws that regulate car sales in their respective jurisdictions.
Applicability
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The applicability of laws relating to car sales varies in part depending on the nature of the transaction. Laws may apply only to new car sales, only to used car sales or to both. Similarly, laws may regulate selling activities by car dealers, by private parties, or both.
Considerations
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Because laws that apply to car sales vary geographically, restrictions and requirements that apply in one locality may not apply in another. When buying or selling cars in new location, it can be useful to review local laws for unexpected changes.
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