Cars Cars

Law Car Dealers Must Follow


The dealers who are selling used vehicles must comply with the Federal Trade Commission’s Used Car Rule. The car dealers who sell more than five cars in a year must comply with the Rule. Financial institutions are exempt from the Rune, like all the businesses that are selling vehicles to employees. The Used Car Rule is applied in all states except Maine and Wisconsin. These states are an exception because they have some similar regulations which require dealers to post disclosures on used vehicles. Law car dealers must follow may vary because there are many laws and regulations that apply to car dealers.


Almost each state has its own UDAP, or a statute that has the use to protect the consumers. The statues are defending consumer from fraud, deception and unfair transactions. A law car deal can be one of the things that UDAP can protect the customers from.

About Fraud

Fraud is when the consumer is lied about or it receives insufficient information from a car dealer regarding the vehicle’s condition for example and the detail that the consumer should know is kept away. The Law car deal must be respected by all dealers.

A car dealer mustn’t lie to the consumer; he also has certain duties to the customers when he is trying to sell a car. If the car dealer doesn’t fulfill the duties that he has to fulfill then the car buyer may have a very good loss after accepting the deal. In case of a fraud you must report the dealer that breaks these rules. This could be the only way to recover your loss.

There are many states that have laws that have the use to protect the consumers from certain types of fraud, and also charging usurious interest rates. These laws are good because they also protect consumers from overpriced cars, or from a car that costs much more than it deserves.

You must be very careful on what car dealer you call to so that you can avoid fraud, make sure that he doesn’t lie before making any deal with him, that he respects the law and he has all the licenses clear.

Car deal protection

A law car dealer must follow is to be fair and to tell the costumer all the information that he should know and not to avoid any problems regarding the goods he is selling.

Once the dealer sold the car he is protected from the damages the buyer caused to the car as long the buyer keeps proof of sale.

There are people that bought cars that went mechanically wrong after a few days and went to the dealer to fix their problem and got refused so you need to be sure that the product you want to buy is working properly and be sure that the warranty contract is telling about fixing the car’s damage fixing before you sign it. If your car needs repairs after a few days and the warranty don’t cover such things then there is not likely going to have much legal authority to support that the car dealer breached their post-sale verbal promise to give you a refund.

Law car deal can be sometimes a disadvantage for the customers.

By Bob Meadow, published at 03/29/2012
   Rating: 4/5 (11 votes)
Law Car Dealers Must Follow. 4 of 5 based on 11 votes.