Buyers Guide FAQ

What is the Federal Trade Commission Buyers Guide Rule?
Who must comply by the Buyers Guide Rule?
What vehicles are required to have the Buyers Guide displayed?
What vehicles are NOT required to have a Buyers Guide displayed?
When should I display the Buyers Guide?
What information must be displayed on a Buyers Guide?
Where do I display the Buyers Guide?
Where can I obtain a Buyers Guide?
What is an Implied Warranty?
What is an Express Warranty?
When should warranty information be disclosed?
Does the customer need to sign the Buyers Guide at the time of the sale?
Who enforces the Buyers Guide Law?
If I forget to post the Buyers Guide on a vehicle I am selling, what will happen?
I am not a dealer but I sold 6 cars in the last 12 months, do I need a Buyers Guide?
My State does not allow AS-IS Sales, what Buyers Guide should I use?
What States require an FTC Buyers Guide to be displayed on vehicles for sale?
Do consignment sales need a Buyers Guide?
Can I use a Buyers Guide as a Written Warranty?
What is a Spanish Language Buyers Guide?
Should I display an English Language Buyers Guide AND a Spanish Language Buyers Guide?
What about selling vehicles at Dealer Only Auctions?
I have two cars at the back of my lot I purchased at an auction that are not yet for sale, do they need Buyers Guides displayed?
I still have more questions, what should I do?

What is the Federal Trade Commission Buyers Guide Rule?

The Federal Trade Commission Buyers Guide Rule is part of a Federal Disclosure law that requires all used car dealers to disclose warranty information in writing before the sale of any vehicle. The rule was placed into effect to inform consumers that the written warranty overrides and supersedes any spoken promises made by a motor vehicle dealer at the time of the sale.

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Who must comply by the Buyers Guide Rule?

Any car dealer or person that sells 6 or more motor vehicles in a 12 month period is required by Federal Law to follow the FTC Buyers Guide Rule, which includes posting a Buyers Guide on every vehicle held for resale. If you need more Buyers Guide Compliance information order the Automobile Dealer Training Association Dealer Training Manual

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What vehicles are required to have the Buyers Guide displayed?

Any car, truck, light duty truck, van, trailer,  boat trailer, ATV, jet ski, jet ski trailer, RV, semi truck, etc. or any vehicle with a loaded gross vehicle weight rating of less than 8,500 pounds, a curb weight of less than 6,000 pounds, and frontal area of less than 46 square feet are required to have an FTC Buyers Guide Displayed. Complete step by step instructions are contained in the Auto Dealer License Training Manual

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What vehicles are NOT required to have a Buyers Guide displayed?

The only exemptions to the FTC Buyers Guide rule are motorcycles, some agricultural equipment, and any State Certified Salvage dealer selling a car for junk, salvage, or parts.

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When should I display the Buyers Guide?

Buyers Guides must always be displayed on a vehicle BEFORE offering it for sale. The safest way to comply by the Buyers Guide Rule is to place a Buyers Guide Sticker in a vehicle as soon as you take possession of that vehicle. For example, if you are buying a vehicle at an auction, you should place a Buyers Guide in the vehicle as you pull off the auction lot, or before you drive the vehicle onto your display lot.

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What information must be displayed on a Buyers Guide?

The Buyers Guide must state whether the Dealer is selling the vehicle AS-IS or with a Warranty. For States that do not allow AS-IS vehicle sales, the Dealer must disclose whether the vehicle is being sold with an Implied Warranty, or Warranty. The Buyers Guide must inform the customer that written information overrides any spoken promises. The Buyers Guide must also state what percentage of repair costs the dealer will pay and the parts of the motor vehicle that are covered. It must inform the customer of any parts of the motor vehicle that are not covered and how long the warranty covers any specific parts, The person name to contact regarding warranty or repairs should also be included on the Buyers Guide.  The Buyers Guide must suggest the customer get all spoken promises in writing and advise the customer to keep the Buyers Guide after the sale. The Buyers Guide should also suggest the customer have the motor vehicle inspected by a mechanic before purchasing the motor vehicle. More info is in the Automobile Dealer Training and Compliance Manual.

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Where do I display the Buyers Guide?

The Buyers Guide should be displayed on the vehicle so customers can see the front and back of the Buyers Guide. It can be displayed in a window, hung from the rear view mirror, placed under a windshield wiper, or even hung from an outside mirror. You are not allowed to place the Buyers Guide in the glove compartment, or anywhere the customer is not able to see it.  The Buyers Guide can be taken down during a test drive temporarily but must remain in the vehicle during the test drive. When the test drive is completed the Buyers Guide must be re-displayed prominently. If you are offering trailers for sale, or would like to post the Buyers Guide on the outside of a vehicle, you can place the Buyers Guide in a waterproof laminate document sleeve for display purposes.

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Where can I obtain a Buyers Guide?

You can download your Buyers Guide or Spanish Language Buyers Guide buy clicking here.

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What is an Implied Warranty?

An Implied Warranty is a guarantee by State law that covers every motor vehicle sale. If a Dealer sells a vehicle AS-IS with no warranty, the customer still has certain rights and some amount of protection. For example, if a customer purchases a vehicle AS-IS and the engine fails a short time after the sale, the customer would still have some type of legal rights to recoup a portion, or all of the repair costs for the engine replacement.

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What is an Express Warranty?

An Express Warranty is a warranty that is "Expressly" written in a sales document buy the Dealer.

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When should warranty information be disclosed?

All warranty information must be disclosed and posted prominently on any vehicle BEFORE offering that vehicle for sale.

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Does the customer need to sign the Buyers Guide at the time of the sale?

Yes. The customer must sign the original Buyers Guide at the time of the sale and the Dealer must provide the signed original, or a copy, of the Buyers Guide at the time of the sale. Having the customer sign the Buyers Guide shows proof that the Dealer has disclosed all warranty information before the sale.

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Who enforces the Buyers Guide Law?

The Buyers Guide Law is enforced by Special Agents of the Federal Trade Commission. These Special Agents conduct what are called "Buyers Guide Audits". The Special Agents will descend on a particular city anywhere in the United States without notice and inspect every dealer in a geographic area. These agents operate all over the country to make sure all dealers are complying buy the Federal Trade Commission's Buyers Guide Rule. Also, some States have there own laws that require Dealers to comply by the FTC Buyers Guide Rule. States may also levy fines against Dealers that fail to post Buyers Guides on all vehicles.

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If I forget to post the Buyers Guide on a vehicle, what will happen?

The first violation for not having a Buyers Guide posted prominently is $1,000 per violation. Each vehicle without the Buyers Guide is one violation. The second violation of the Buyers Guide rule is $10,000 to $11,000 per violation. Your second violation can be the following day after your initial violation, the next year after your first violation, or 20 years after your first violation. If you have 10 cars without Buyers Guides posted prominently on your second violation your dealership will face over $100,000 in fines. These are Federal Fines placed on your dealership by the Federal Trade Commission and are usually not negotiable. You must comply by the FTC Buyers Guide rule at all times. Some States will give a Dealer a separate fine in addition to Federal fines for Buyers Guide violations.

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I am not a dealer but I sold 6 cars in the last 12 months, do I need a Buyers Guide?

Yes. Any person or business that sells 6 or more vehicles in a 12 month period is required to post a Buyers Guide on every vehicle held for resale. If you would like to learn more about obtaining a Dealer License order your ADTA Dealer Training Manual

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My State does not allow AS-IS Sales, what Buyers Guide should I use?

For dealers that operate in States that do not allow AS-IS vehicle sales, you should use the Buyers Guide with an Implied Warranty. Be sure to check with your State's motor vehicle bureau to see what type of Buyers Guide you will be allowed to use.

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What States require an FTC Buyers Guide to be displayed on vehicles for sale?

All States, the District of Columbia, Guam, American Samoa, Puerto Rico, and the US Virgin Islands require dealers to abide by the FTC Buyers Guide rule. Maine and Wisconsin have there own state laws and warranty disclosure documents that protect buyers during a vehicle transaction.

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Do consignment sales need a Buyers Guide?

Yes. Any vehicle held for resale on a consignment basis is required to have a Buyers Guide displayed. Dealers can learn more about consignment sale in the Dealer Training and Compliance Manual

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Can I use a Buyers Guide as a Written Warranty?

No. The information provided on a Buyers Guide is not considered a written warranty. If you offer a warranty you will need to disclose the specifics of the written warranty on a separate document provided to the customer at the time of the sale.

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What is a Spanish Language Buyers Guide?

A Spanish Language Buyers Guide is the same FTC Buyers Guide that has been translated into Spanish. A Spanish Language Buyers Guide must be provided if the vehicle transaction occurs in Spanish.

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Should I display an English Language Buyers Guide AND a Spanish Language Buyers Guide?

Yes. If you conduct a substantial number of vehicle sales in both English and Spanish languages, you must display an English and Spanish Buyers Guide on the vehicle. If you are conducting a vehicle transaction in Spanish, you must display a Spanish Language Buyers Guide on the vehicle before the sale occurs. Therefore if you have Spanish speaking customers at your dealership on a regular basis, you should display English and Spanish Language Buyers Guides on every vehicle.

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What about selling vehicles at Dealer Only Auctions?

Dealers selling vehicles at a Dealer only auction are exempt from the Buyers Guide rule. You do not have to display a Buyers Guide on any vehicle you are selling at a dealer only auction that is closed to the public. If you are selling a vehicle at an auction that is open to the public, then you must abide by the Buyers Guide rule and display all warranty information before the transaction occurs.

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I have two cars at the back of my lot I purchased at an auction that are not yet for sale, do they need Buyers Guides displayed?

Yes you must display a Buyers Guide on every vehicle in your possession, even if it is not yet ready for sale. A Dealer in Missouri received 2 violations of the Buyers Guide law because he had just purchased 2 cars from a Dealer only auction, placed the vehicles at the back of his lot while getting them ready to sell. The FTC did a buyers guide audit on his dealership and gave him 2 violations for the 2 cars that were not yet "Retail Ready". They stated the cars were in the Dealer's possession, located on the Dealers lot, without Buyers Guides posted prominently, then the FTC fined the dealer $1,000 for each violation. If that dealer receives any second violation, whether it is tomorrow, next month, or 10 years from now, he will receive at least $10,000 per violation.

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I still have more questions, what should I do?

Contact the Federal Trade Commission at 1-877-382-4357 or visit www.ftc.gov or you may download the Federal Trade Commission Buyers Guide Compliance Guidelines or you may order your Automobile Dealers Training Association Dealer Training and Compliance Manual

 

The information on FTCBuyersGuide.com is provided by the Automobile Dealer Training Association for reference purposes only. Please refer to the Federal Trade Commission Buyers Guide Compliance Guidelines or call the Federal Trade Commission at 1-877-382-4357 for further details.