Consumer Rights When Buying a Second Hand Car

Laws intended to protect used-car buyers vary from state to state. More state laws pertain to new-car sales than used-car purchases, even though consumers who buy used vehicles are likely to face more problems with unfair and deceptive sales practices. That's why people who want to buy a second-hand car shouldn't do so without first having the vehicle thoroughly checked out by a mechanic they trust.

Buyer's Guide

Car dealerships are required to clearly display a Buyer's Guide on each used car they have for sale. The guide lists information about the car, including whether it comes with a warranty. Consumers have the right to review the guide and require dealers to fulfill any guarantees it offers. The guide also should list the repairs the dealer will pay for if the vehicle's engine, transmission or other parts malfunction.

Salvaged Vehicles

Used-car buyers should be told whether a car has been revamped after being salvaged by an insurance company. The Nolo law information website says cars are sometimes salvaged by insurance companies because they're considered a total loss after being damaged in a crash, flood or other incident. A buyer can choose to take on the risk involved in buying a salvaged vehicle, but the seller is obligated to disclose the vehicle's history to the buyer and not conceal its savaged status.

Lemon Laws

Every U.S. state has lemon laws that protect new-car buyers whose vehicles malfunction shortly after they're purchased. The Edmunds auto information website says Connecticut, Massachusetts, Minnesota, New Jersey, New Mexico and New York have lemon laws that protect used-car buyers as well. Other states have some form of used-car buyer rights that set minimum standards for used-car sales. However, an Edmunds article titled "My Used Car's a Lemon! Am I Stuck With It?" says only states that have official used-car lemon laws require dealerships to provide a replacement or refund for a malfunctioning used vehicle. Cars are usually considered lemons when they have a significant defect that can't be fixed after several attempts. Significant defects include faulty brakes or defective steering systems that hamper a car's use or safe operation.

Other Laws

Your state may have several laws in place to protect used-car buyers' rights. Your state Attorney General's Office or Department of Consumer Affairs should have information on applicable local laws. In California, Los Angeles County requires dealerships to offer used-car buyers the chance to purchase an option to cancel a vehicle sale agreement within two days of a sale. However, the law doesn't apply when cars are sold in "as is" condition. According to the Los Angeles Department of Consumer Affairs, the fees for buying the option to cancel range from $75 to $250, depending on the price of the vehicle. Californians who return their vehicles may have to pay return fees as well that range from $100 to $250.

References

• Nolo; Getting the Best Deal on a Used Car
• County of Los Angeles Department of Consumer Affairs: Used Car Buyers Bill of Rights
• Ohio State Bar Association; Law You Can Use; Gregory S. Reichenbach; Jan. 27, 2010
• Edmunds; My Used Car's a Lemon! Am I Stuck With It?; Joanne Helperin; Oct. 20 2009