Buying a used car will be a daunting task for those uninitiated in the process.  The uninformed are almost always victimized in these transactions, as used car dealers often do not have to the same standards are car dealerships.  You are however, entitled to certain rights as a buyer under consumer protection laws.  Be aware of the terms related to selling used cars and the obligations of the seller, including implied warranties.  All promises made during used car transactions must be recorded in writing to be legally valid.  In getting promises and other critical information, you will gain the protection of federal and state laws and ensure that your used car transaction is safe and minimizes the risk of fraud.

Truth in Mileage Act of 1986 – federal law that bans the tampering of a car’s odometer in order to make the car appear to have less mileage than it has actually traveled.  This is one of several laws that require honest and accurate reporting on the condition of a used car.

The Magnusson-Moss Warranty Act of 1975 (Public Law 93-675) is legislation that regulates consumer warranties when offered on products.  This legislation does not force suppliers to give warranties to consumers, but merely ensures that the warranties are fair and easy to understand.  

The Magnuson-Moss Warranty Act also sets up standards for companies to respond and be accountable for their warranties and creates an alternative dispute resolution infrastructure to resolve low-level disputes without the need to burden the judicial system.  This covers written guarantees, so oral proclamations and promises are non-enforceable and that at the discretion of the consumer.  The Magnuson-Moss Warranty Act applies to consumers only and is not meant to regulate relations between suppliers that resale products.

Uniform Commercial Code of 1952 defines implied warranties, which shall include the product’s:

• Fitness for a particular purpose – the product must perform for the function as advertised.

• Merchantability – the product must have all defects noted by the merchant at the time of sale and will fulfill the purpose for which it was sold.

• Workmanlike quality- any item made or constructed for the consumer must be made to acceptable standards.

• Warranty of title – the seller has not stolen the goods and has a legal right to sell to the consumer.

The implied warranty will offer you protection against “lemon” cars, which are non-functional and hurtful to consumers that expect a certain level of quality when they buy a vehicle.  In short, the vehicle has to work for the dealer to sell it.  A breakdown is not an automatic violation of an implied warranty by repeated breakdowns and excessive repairs will make a compelling case for the violation of an implied warranty.

As is – this term means that you are buying the car without a warranty an all defects and problems with the car are disclosed to you.  The dealer or seller is not obligated to cover the cost of repairs or liable for problems with the car.  It is important to analyze agreements between you and the dealer to check if this clause is included in the agreement.  In spite of this tag, the seller is required to disclose any information about defects and issues related to the car and failure to do this will be a violation of state lemon laws. 

 

Inspection – you are entitled to have a mechanic independent of the dealer to check the car for faults, defects and potential problems before buying it.  You will need to request that the dealer allow you to inspect the vehicle at the dealership or at the mechanic’s.  Feel free to walk away from the deal if the dealer refuses inspection.

Warranty – this is a written guarantee from either the manufacturer or deal of the used car to cover some or all of the defects and part failures during the specified term of the warranty.  The warranty must be specific on the obligations of the manufacturer or dealer and specify the percentage of the costs of parts and labor will be covered under the warranty.

Service contract – this is similar to a warranty as it provides some benefits and defines the relationship between the buyer and dealer.  For service contracts, the buyer typically purchases this from the dealer and the contract will define coverage, deductibles, prices and exclusions.  Carefully analyze the terms of a service contract before agreeing to purchase one from a dealer.

Test drive – if you have the opportunity to test-drive a vehicle, do so.  Not only will this confirm your desire to buy the used car, you will be able to identify glaring issues with the car that will affect your buying decision.

Cooling off period – some dealers may allow up to three days for the buyer to change their mind.  This is not required by law and can be changed or modified by the deal at any time.  It is good practice to buy the car with the complete intention of keeping it, rather than relying on a cooling off period promise.

The Buyer’s Guide is a federal requirement that requires the deal to disclose:

– The conditions of sale (as-is vs. warranty)

– Repair costs paid by the dealer, terms of the warranty

– No guarantee of enforcement on spoken promises

– That promises made in writing should be kept safe

– All mechanical systems on the car and possible faults

– Your right to have the car inspected by an independent mechanic

The seller has no legal obligation to allow you to return the car once you have driven it off the lot.  There will be limited exceptions in California and Ontario.  Even then, in the case of California, you must pay to exercise the return option.  Returns can only be achieved if a return clause is added to the contact between you and the seller.  

Otherwise, the car is your responsibility.  The federal government has no say in this matter.

– Brake system

– Cooling system

– Differential

– Electrical system

– Engine

– Exhaust system

– Frame & Body

– Fuel system

– Inoperable accessories (AC, Heater, gauges)

– Steering system

– Suspension system

– Tires

– Transmission

– Wheels

Although all of these systems will have unique problems, common problems affecting most systems in used cars are fluid leakage, cracks/visible damage, poor alignment and worn parts.  A pre-purchase inspection from an independent mechanic can spot these potential issues and advise you on your buying decision.  Some or all damage to these systems will be covered by an implied warranty if the system is critical to the car’s safe operation.

It may seem that the dealer will work to gain an unfair advantage on your or find ways to rip you off.  This might feel even more the case if you discover a defect in the car after you have bought it.  Still, there is no need to get a lawyer just yet.  The Federal Trade Commission, as well as standard practice recommends speaking with the dealer and entering an alternative dispute resolution, if necessary.  Some warranties may require ADR before seeking legal action.  Through ADR, you may reach a resolution that will have the dealer cover the cost of repairs.  Check your service contract and any warranties that came with the car in the event of a problem.

Communicating with the seller is vital, especially if you are working with a dealership that is a branch of a larger company.  The owners, operators and managers of these enterprises may in some cases, modify the warranty to cover certain issues and satisfy the customer.  If you find that the seller is willing to work with you, in good faith, then you should cooperate with them to resolve the issue.

Filing a complaint with the local Better Business Bureau will help alert other potential buyers about fraudulent or unscrupulous dealers.  Persistent complaints will almost certainly lead to increased scrutiny into the practices of that use car dealer.  Class action against the dealership by several injured parties may be possible as a result of this investigation.  Filing a complaint with the Federal Trade Commission is also a possibility for larger dealers.

Small claims court is the ultimate destination for litigation related to buying a used car.  You may have to consider an attorney when going to small claims court, especially if the other party intends to have legal representation.  Here is where it is critical to have all promises in writing.  The clerk of the small claims court will advise you on the strength and possible limitations on your claim against the seller.

Private sellers are not bound by the same rules as dealers.  For one, they do not have to abide by regulations, such a providing a buyer’s guide and all sales are considered “as is” unless otherwise noted by the seller.  You need to be aware of limitations on the car’s warranty, such as if the warranty or service contract is non-transferable.  This may put you on the hook for repairs if the car is indeed going to be non-functional or require maintenance at some point.  Most states do no set a minimum requirement for the car to function or for inspection before the car is sold.

Any individual that is going through bankruptcy or any other financial distress may have a lien placed on their vehicle.  This will usually be because the car is used as collateral against an unsecured debt or the individual has not made the required payments.  A seller must disclose any liens against the car and from there you will have to determine how that lien will affect you.  The car may be seized to pay the debt and you cannot take possession.  In other cases, the seller may keep the “title” to the car while repaying the debt and provide the buyer with another lien against the car.  This helps the buyer as if the car must be seized, the buyer will be compensated.  In usual cases however, the ownership of the car cannot be transferred until the liens are resolved.  When buying a used car from a private seller, you should research if there are liens against the car and if this may prevent your continued ownership of the automobile.

To have proper ownership of the car you buy from a private seller, you must register the vehicle with state authorities.  Federal law creates a national directory of titles and registration to hamper those that may steal cars and also for law enforcement purposes.  You will need to check with your state’s Department of Motor vehicles or the equivalent licensing and registration division to have the vehicle inspected.  Failure to meet federal or state requirements for emissions may prevent the registration and legal operation of the car.  The seller has no obligation to have the car meet inspection standards before selling it.

Every state has unique lemon laws that protect consumers that buy used cars.  Generally, these laws will specify a number of days or repair attempts that will classify a car as non-functioning or as its commonly known, a “lemon.”  Some states may even require the party that sold the car to pay for the attorney fees of the buyer if the case goes to trial and the plaintiff wins.  This is aimed at prevented continued violations of the lemon law and unscrupulous business practices.  It is important to note that lemon laws generally cover instances when the vehicle is not under warranty and information about the state and condition of the car has been concealed from the consumer.  Note that if a car simply “breaks down” it is not a lemon.  Repeated failures will be what will constitute a possible lemon car.

Buy used cars/buying a used car/buy a used car/what to look for when buying a used car 

Most people, before buying their first car will research car buying tips in order to maximize their trip to a dealer or used car salesman.  Common sense is your best car buying tip.  As long as you remain firm about what type of car you want and the protection you want on it, you will prevent the possibility of being sold a car you don’t want or protection you don’t need.  Reading all documents, including the fine print is absolutely necessary to ensure that you can hold the seller accountable for faults and other issues that might arise from the purchase of this car.

Do you really want a car?  It may seem like a silly question, but if you decide a week after you have bought it that the car will be too expensive or you do not need it, you are out of luck.  Unless the dealer allows you to have a cooling off period, you are most likely stuck with the car and cannot return it.  There is no legal option to force the dealer to take the car back and if you are unsatisfied with your buying decision.  There are limited exceptions in some states which gives consumers time to consider their financing options or have a paid return option.  Do not rely on these laws; it is better to be sure the car is what you want before committing to buy it.

The warranty protects your car against damages and defects by guaranteeing the repair of parts and cost of labor to fix the car.  Full warranties will cover all of these costs, while limited warranties will cover a capped amount or percentage.  Understanding the limits of the warranty you are getting on the car is important to determining what you may pay in the short and long term to keep the car operational.  Not all cars come with warranties and some may have the typical rights of a warranty, implied or otherwise, waived by selling the car “as is.”  Although you have the protection of lemon laws, understand that if the car breaks down a week after you’ve bought it, it is not a lemon.  Only substantial damages, excessive repair bills and frequent repairs can classify a car as a lemon and help you get your money back.

You will be faced with the decision to buy a service contract.  In fact, many car buyers do purchase a service contract.  A good service contract offers piece of mind and allows the car owner to perform necessary maintenance or repairs for a lower cost.  This is similar to a warranty but usually only offers a discount on the cost of parts and labor.  Usually your warranty will be sufficient to avoid buying a service contract right away.  If it is not, you may want to take the service contract option, so that you may supplement the warranty.  When buying the car, ask if you will be offered the service contract after the warranty expires.  In addition, study the terms of the contract and ensure it covers essential services and repairs the car may need.  Also, determine who will enforce the service contract, especially if the entity you are buying the contract from ceases to exist.

If you want peace of mind when figuring out how to buy a car, you should research the seller, either through independent reviews or by consumer protection agencies, such as the Better Business Bureau and state authorities.  These entities will keep records of complaints against business and many patterns of unsatisfied customers should flag a prospective buyer of the potential for a less than favorable transaction.  The less reputable the dealer, the less credence you should give to promises that the cars are “certified-pre-owned” or that the warranty is particularly suited to your needs.

Make sure you can identify the following things in the financing agreement:

– exact cost of the car

– annual percentage rate

– the number of payments to be made

– fees for financing for the amount that you will be financing

– how much the car will cost you, when factoring for financing options and interest.

Worse than sticker shock is paying for what seemed like a low-priced car, only to be paying exorbitantly for that car for years with a rising interest rate and never ending payments.  Therefore, when a dealer offers “no money down payments” and other inducements to buy, understand that you will pay more in the long term due to interest.  Financing may be right for you, but understanding how much financing will cost is important in buying a car.

All cars in the United States must be registered with the local Department of Motor Vehicles (or equivalent in your state).  With the internet, you may check the history of any vehicle, especially any used car for sale.  In researching the history, you will find a record of accidents and other issues with the car that are not readily apparent through a cursory inspection of the car.  Let the vehicle history affect your decision to buy the car.

Generally, you will be given the right to have an independent mechanic check the vehicle.  If this is available to you, having the vehicle inspected before buying is an important step in ensuring you are not facing hidden costs at a later date.  Test drives are also a common way to inspect the vehicle.  Test drive the vehicle when you can to determine how well the car works and if you are comfortable committing to buy that vehicle.  Neither inspecting nor testing the vehicle will lead to an increased chance of making a poor decision.

Before you buy a car, you must understand how leasing works in order to determine how the value of your car will depreciate and if you are getting the best deal when financing your car purchase.  Leasing is the typical alternative to buying a car outright and in times of economic contraction, where low-interest financing is not available, leasing has grown tremendously as an option for car buyers.  Before leasing a car, it is important to understand in full the terms and conditions of the lease, its cost to you and the value of the car you are leasing.  

Incomplete information in any aspect of the leasing a car process will put the potential buyer at a disadvantage and ensure the deal will not be in the buyer’s interest.

MSRP – Manufacturers Suggested Retail Price is the base cost of the car, before fees, taxes and other costs of the sale.  Additional features to the car are reflected in the MSRP.  

Negotiated price – you are not always paying the MSRP when buying or leasing a car.  You may come to an agreement with the dealer that involves certain additions, terms or agreements that lower this price.  You will need this figure when determining if you should lease the car.  You may be able to negotiate some dealer fees, but you will not be able to negotiate state and local fees.  Taxes, rebates, fees and other credits are not reflected in the negotiated price.

Tag, title, registration, documentation fees – some fees reflect taxes levied by local authorities and cannot be avoided, although some fees, such as documentation fees, may be capped by local law.  Other fees, such as the destination charge are mandatory as this reflects the cost to move the vehicle from the factory to the dealer.  Be aware of which fees are mandatory and which are avoidable before agreeing to lease a car.  An important distinction in leasing is that fees are paid up front and are not financed.

Lease acquisition fee – you will typically be assessed a fee by the dealer to acquire a lease on a car.

Down payment – by making a down payment, you reduce the principle owed on the car, decreasing the long term cost of the car that would accrue due to interest.

Trade in – the cost of leasing a car can be modified if you trade in your current car to the dealer.  Determine if the dealer offer on the trade in value of your car is worthy before agreeing to include a trade-in as part of the leasing agreement.

Rebate – dealers may offer a rebate for certain options or as a promotion to induce you into buying or leasing a car.

Tax break – you will need to be familiar with the tax laws in your state.  Some states do not tax motor vehicles at all.  Other states will assess tax on monthly payments only rather than the sale price of the vehicle.

The money factor is the interest on the lease and it is not always disclosed by the dealer during a leasing arrangement.  The money factor can be multiplied by 2,400 and this will give you a ballpark estimate of the interest rate collected by the dealer for leasing the car.  For instance, a money factor of .000750 is equal to an annual percentage rate of 1.8%.  The lower the money factor (also expressed as lease factor, lease rate or factor) the better the lease deal will be.  One’s credit rating will have a large impact on the money factor available with the best rates available to those with a spotless credit rating.

Those considering leasing a car will find the use of an online lease vs. buy calculator a useful tool in determining if they should lease a car.  These are widely available and can be found through a reliable search engine.  The typical lease calculator will factor terms MSRP, deduction, interest, and can sometimes provide you with a comparison of the cost to you in terms of leasing or buying.

This is the value of the car after the lease has expired and will help you determine if you intend to buy the car, trade in the vehicle or sell the lease before it is up.  You should research how much the car will depreciate and what the residual value of the car will be at the end of the lease before agreeing to lease a car.  Mileage will have an effect on the value of the car after the lease is up.  If you know you will be using the car heavily, negotiating a higher limit on the annual mileage allotment will prevent you from being penalized later, as per the terms of the agreement.  The higher the residual value of the car at the end of the lease arrangement, the lower the monthly payments you will have to pay on the car.  The smaller the gap between initial cost and lease end value, the lower payments will have to be made on the lease.

Unlike a loan, a longer lease is not necessarily as disadvantageous as a typical loan.  It is advisable to pick a lease term as long as the warranty for the vehicle, which will protect you during the leasing period against faults and accidents.  Therefore, you may have a long lease on a vehicle with a long warranty.  Foreign models also tend to depreciate less, which means at the end of the lease, the car will be worth more than its domestic counterpart after a similar term.  Lease terms are typically expressed in months, generally in increments of a year (36, 48, 60 months) but odd terms may be used to have you come in at another, less busy point of the year at the end of the lease.  Short term leases are generally more expensive than longer term leases, owing to the fact that cars will depreciate rapidly during the first 24 months after they are sold.  A car usually retains only 34%  of its initial value after five years.

In order to obtain a Washington permit or licensing, you will need to work with the Washington State Department of Licensing.  Minors as young as 15 may receive permits if they are enrolled in a driver’s education class.  They do not need to pass the practice permit test for Washington.  Minors that are not in driver’s education and are 15 and a half can obtain an instruction permit by passing the practice permit test.

You will need to provide proof of identity but will not need to show residency in Washington, unless you do not have a Social Security Number.  Parental consent will also be mandatory for those under the age of 18.  The fees associated with licensing and testing can be paid by cash, check or credit card, although some DMV locations will not accept credit cards for payment.

The fee for the knowledge test is $20 and this fee is charged every time the test is taken.  Another test can be taken 4 hours after you fail the first time.  To avoid multiple failures, you must study the Washington Driver Guide, which will contain all the information you need to pass the practice permit test for Washington.  The practice permit test in Washington is conducted on computers and has 25 questions.  You will need to get 80% correct in order to pass and receive the instruction permit.

permit practice test Washington/practice permit test Washington

To receive a learner’s permit in West Virginia, you will need to go to the DMV, which is an agency of the West Virginia Department of Transportation.  When applying for the permit, you must show your birth certificate, social security card and two proofs of West Virginia residency.  You will find additional information on the identification requirements at the DMB website.

You will be able to find a practice permit test for West Virginia at the DMV website.  There were be 20 questions and an answer key is provided.  These questions will be similar but not the same as the questions on the actual knowledge test.

The Driver’s Licensing Handbook is also a useful tool to help you pass the practice permit test for West Virginia.  You may find this online at the DMV website in addition to a Spanish and Japanese translation version.  This document will contain all provisions necessary to understand typical licensing requirements as well as the requirements of the Graduated Driver’s License.  All of the information that will be tested on the practice permit test for West Virginia can be found in this manual.

You must be at least 15 years old to receive a permit and demonstrate that you have at least 20/40 vision with or without corrective lenses.  Parental consent is also required for minors to obtain their permit.

permit practice test West Virginia/practice permit test West Virginia

To receive a learner’s permit in Wisconsin, you will need to go to the DMV, which is an agency of the Wisconsin Department of Transportation.  When applying for the permit, you must show your birth certificate, social security card and two proofs of Wisconsin residency.  You may also have to show proof of legal US residence.  You will find additional information on the identification requirements at the DMV website.  Any person 16 and older may have a driver’s license in Wisconsin but parental consent will be required at all stages of the licensing process.

You will be able to find a practice permit test for Wisconsin at the DMV website.  There were be 20 questions and an answer key is provided.  These questions will be similar but not the same as the questions on the actual knowledge test.  the actual test will measure your knowledge of traffic rules, sign and driver safety.

The Wisconsin Motorists’ Handbook is also a useful tool to help you pass the practice permit test for Wisconsin.  You may find this online at the DMV website in addition to a Spanish and Hmong translation version.  This document will contain all provisions necessary to understand typical licensing requirements as well as the requirements of the Graduated Driver’s License.  All of the information that will be tested on the practice permit test for Wisconsin can be found in this manual.

permit practice test Wisconsin/practice permit test Wisconsin

Among the unique features of the Nevada DMV is a live updated customer wait times chart that is updated frequently.  This allows anyone that intends to take the practice permit test in Nevada to plan their trip to the DMV accordingly.

The minimum age to become a licensed driver in Nevada is 16 as long as parental permission is secured at the time off application.  The teenager will need to pass the permit practice test in order to qualify for the road test to earn their license.  Those applying for the first time will need evidence of a social security number, as well as evidence of full legal name and date of birth.  All documents presented in this process but be original and certified.

Like other states, the testing will consist of vision tests, practice permit tests for Nevada and skills testing, commonly referred to as the road test.  Testing can be conducted in either English or Spanish, depending on the needs of the applicant.  The test may also be conducted by paper or electronically, depending on the location you choose to take the practice permit test for Nevada.  The cost of the instruction permit will be $22 after you successfully complete the test.

The Nevada driver’s handbook can be downloaded directly from the Nevada DMV’s website and will be available in both English and Spanish.

If you need legal advice and assistance, contact Nevada lawyers.

The Minnesota Driver & Vehicle Services will be your resource for passing the practice permit test for Minnesota.  A class D instruction permit for Minnesota will be valid for two years and will cost $12 plus a $1.75 technology fee.  

In order to pass your permit practice test for Minnesota, you should consult the Minnesota Driver’s Manual.  Here you will learn all the information you need to apply for an instruction permit and also all information that will be on the written practice permit test for Minnesota.  

You will need to be at least 15 years old to apply for an instruction permit.  If this is the case, the 15 year old applicant will need to have a certificate of school enrollment and must be enrolled in a driver’s education program.  Those that are 16 years old will need certification of completing a driver’s education course in order to qualify for a road test to become a licensed driver.  All minors will also require parental approval in order to take the permit practice test for Minnesota.  The test is free the first two tries but the third and fourth tries will cost $10 as a penalty for failing the first two attempts.

You will only be allowed to take the knowledge test once a day and you must receive a score of at least 80% in order to pass.  The test may be given on a computer at which point you may select another language or use audio assistance to have the questions read to you.

permit practice test Minnesota/practice permit test Minnesota