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 seller is very different from buying a car from a dealer.
Private sellers generally are not covered by the Used Car Rule and
do not have to issue a Buyer's Guide. The Federal Trade Commission's
(FTC's) Used Car Rule says that anyone who sells more than 6 vehicles
per year, excluding RVs and motorcycles, must post the FTC's "Buyer's
Guide" on any used vehicle offered for sale. Although the FTC's
rules do not usually apply to private sellers, you can still use the Guide's
list of a vehicle's major systems as a shopping tool. To see the "Buyer's
Guide" and for more information, see the FTC's web site
at www.ftc.gov. You should always have
your own mechanic inspect the vehicle before you make any commitment. There
are mobile inspectors who can come to the vehicle's location if the
seller will not allow it to be moved.
Vehicles purchased from a private seller usually do not have warranties
or implied warranties. That means a private sale probably will be on an "as is" basis,
unless your purchase agreement with the seller specifically states otherwise. You
can enforce the terms of a written contract, but verbal promises are usually
not enforceable. A used vehicle may be covered by a manufacturer's
warranty or a separately purchased service contract, but such warranties
and service contracts may not be transferable to you, and other limits
or costs may apply. Before you buy, review any warranty or service
contract it has and be sure you understand all the terms.
Many states do not require private sellers to ensure that their vehicles
will pass state inspection or carry a minimum warranty before they offer
them for sale. Ask the consumer protection division of your
state Attorney General's office or local consumer rights group for the requirements
in your state.
