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Dealer Versus Private Sale
Q. Should I buy from a dealer or a private seller?
A. Go with whoever gives you the best deal and with whom you
are most comfortable.
Some experts believe you may be better off buying from a private seller.
They think a
private seller may give a more accurate description of the car's faults
based on personal
knowledge, and you may get a lower price from a private seller. Private
sellers, however,
seldom give warranties, which dealers sometimes offer. (See the "Warranties"
section) Also, some states have regulations governing used car sales that
may apply
only to dealers.
Q. Do I need a written contract if I buy from a private seller?
A. If you are paying more than $500, you should have a written
contract. Courts usually
cannot enforce an oral contract to sell a car for over $500 under the
Statute of Frauds.
Even under $500, it is always best to put the contract in writing if you
are not going to
conclude the deal immediately with a Bill of Sale (see next question).
Q. Do I need to get anything else in writing?
A. You should have a Bill of Sale. Many states require you to
present a Bill of Sale to
register your car. A Bill of Sale also may serve as a receipt. The Bill
of Sale should
contain the:
- date of the sale;
- year, make, and model of the car;
- Vehicle Identification Number (VIN);
- odometer reading;
- amount paid for the car, and in what form (cash, check, and the like);
and
- buyer's and seller's names, addresses, and phone numbers.
The seller should sign and date the Bill of Sale, and both you and the
seller should get a
copy.
Special Rules for Used Car Dealers
The Federal Trade Commission has issued a Used Car Rule for dealers.
Under the rule,
"dealers" are those who sell six or
more used cars in a twelve-month period. The rule
forbids used car dealers from misrepresenting the mechanical condition
of a used car or
any warranty terms, and prohibits them from representing that a car
comes with a warranty
when none exists. They must make available the terms of any written
warranty they
provide, and they must post a "Buyers Guide" on the side
window of the car. |
Q. What is the Buyers Guide, and what must it say?
A. Information contained on the Buyers Guide includes:
- whether or not the car comes with a warranty. If there is a warranty,
the specific
coverage must be outlined;
- whether the vehicle comes with implied warranties only, or is sold
"as is," that is, with
no warranties at all;
- a statement that you should request an inspection by an independent
mechanic before
you buy;
- that you should get all promises in writing; and
- what some of the major problems are that may happen in any car.
If you do buy a used car from a dealer, you are entitled to receive a
copy of the
actual Buyers Guide that was posted in your car. If you have negotiated
any changes in the
warranty, it should be noted on the Buyers Guide. The Buyers Guide becomes
part of your
contract, and its terms override any conflicting terms in that contract.
Q. Are there other facts that a seller must tell the buyer?
A. The seller, whether a dealer or a private individual, should
be truthful about the car. If
the buyer is disappointed because it is not as described or does not perform
as it was
supposed to, a breach of warranty action may arise against the seller
who has deceived the
buyer. If possible, the seller should provide the buyer with the car's
complete service
records.
Q. Does the seller have to tell the buyer the car's mileage?
A. Yes, federal law entitles the buyer of a used car to receive
a mileage disclosure
statement from the seller, even if the seller is not a dealer. 0n request,
the seller must give
a signed written statement to the buyer stating the odometer reading at
the time of transfer.
The statement also should certify the odometer's accuracy, to the seller's
knowledge. If the
seller knows it is incorrect, the seller must admit it. Refusal to provide
such a statement, or
illegally tampering with the odometer, exposes the seller to stiff penalties.
Q. Are there other ways to find out about a car's history?
A. Yes. Internet websites now make it easy to find services that
will provide you, on line
or by telephone, mail or fax, with detailed repair, odometer and histories
for many used
cars on the market. To some extent this is done in cooperation with participating
used car
dealers. The information is retrieved based on the car's VIN number. Search
the Internet
for "used car history" or "vehicle history" and compare
the prices and offerings of these
services. Feel free to confront the seller if the information in a vehicle
history report is
inconsistent with what you have been told about a car. And, of course,
any seller who
refuses to inform you of the VIN in question should be avoided.
Inspection Before the Sale
Not only are you allowed to take the car to your mechanic before the
sale is final but you
should. The Buyers Guide sticker, which applies to used car dealers,
urges you to do so. If
the seller, whether a dealer or a private party, will not allow your
mechanic to inspect the
car, do not buy it unless it is such a good deal that you will not
mind paying for car repairs
later. |
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Seller Withdrawing from the Deal
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