Contents
In short
- Dealers must display a Buyers Guide on every used car they offer for sale.
- It says whether the car is sold “as is” or with a dealer warranty.
- As is means you pay for any repairs after the sale, unless your state limits as-is sales.
- The Buyers Guide is part of the contract and overrides contrary terms.
- A service contract isn't a warranty: read what it excludes before paying.
What the Buyers Guide is
The Federal Trade Commission's Used Car Rule requires dealers to display a Buyers Guide on the window of every used car for sale. It tells you, in plain language, whether the car comes with a warranty, and it becomes part of your sales contract.
It also lists major defects that can occur in used cars and recommends asking for an independent inspection before you buy.
As is vs dealer warranty
- As is, no dealer warranty: once you drive away, repairs are on you. Some states limit or prohibit as-is sales, or require implied warranties.
- Dealer warranty (full or limited): the guide states what's covered, for how long and what share the dealer pays.
- Manufacturer warranty: a recent car may still be under the original warranty, which transfers to you.
Service contracts
Service contracts (often called extended warranties) are sold separately, cost extra and have their own exclusions and deductibles. Before buying one, compare its price with the known problems of the powertrain and their repair costs. See engines and transmissions to watch.
Written by
The Carvizia team
Every day we analyze used car listings: engines, common problems, maintenance and market value. Our guides bring together what to check before you buy, without jargon.
About usFrequently asked questions
Does the Buyers Guide apply to private sales?
No. It applies to dealers. Private sales are generally as is.
Can a dealer change the Buyers Guide after I sign?
No. The Buyers Guide is part of the contract, and its terms override contrary provisions in the contract.
Is a certified pre-owned car covered?
Usually, by a manufacturer-backed warranty with specific terms. Read the coverage and its length, and what it excludes.