What the FTC Buyers Guide on a Used Car Tells You (and What "As Is" Means)

The short answer

Every used car on a dealer's lot is supposed to have a Buyers Guide posted on it. It's the FTC-required window form that tells you, in writing, whether the car comes with a warranty or is sold "As Is - No Dealer Warranty." Read it before you negotiate, get any promises written onto it, and keep your copy after the sale. If the Buyers Guide and your contract disagree, the FTC says the Buyers Guide wins.

What the Buyers Guide is

The FTC's Dealer's Guide to the Used Car Rule explains that dealers who sell or offer for sale more than five used vehicles in a 12-month period must follow the Used Car Rule. The rule applies in every state except Maine and Wisconsin, which have their own similar requirements, so it applies in Texas.

The dealer has to post the Buyers Guide before displaying the car for sale or letting a customer inspect it, and it has to be in plain view with both sides visible, like hanging from the mirror or attached to a side window. A guide tucked in the glove box doesn't count. The dealer can take it down for a test drive but has to put it back after.

What it tells you

According to the FTC's consumer page on buying a used car from a dealer, the Buyers Guide tells you:

• Whether the car is sold "as is" or with a warranty
• What percentage of repair costs the dealer will pay under a warranty
• The major mechanical and electrical systems on the car, and some major problems to watch for
• To get all promises in writing, since spoken promises are hard to enforce
• To ask for an independent inspection before you buy
• To get a vehicle history report and check for safety recalls
• That you can ask for a Spanish Buyers Guide if the sale is conducted in Spanish
• The dealer's contact information, including who to contact with complaints

What "As Is" really means

The FTC says "As Is - No Dealer Warranty" means the dealer won't pay for any problems or needed repairs after the sale. You're taking on the risk of whatever goes wrong.

That doesn't automatically mean the car is bad. It means you should do your homework before you sign:

• Get an independent inspection. The FTC recommends a mechanic's inspection even if the car is "certified" or comes with a warranty or service contract. Ask for a written report with repair estimates.
• Write promises on the guide. If the salesperson says they'll fix the brakes or replace a tire, the FTC says to make sure it's written on the Buyers Guide. Otherwise you may have a hard time getting it done.
• Know there's no automatic 3-day return. The FTC says federal law doesn't require dealers to give you three days to cancel. Ask about the dealer's return policy and get it in writing.

The other options you might see

The FTC's dealer guide describes the other boxes a dealer can check:

• Implied Warranties Only is used in states that limit or prohibit eliminating implied warranties when there's no written warranty.
• Warranty means the dealer is offering an express warranty. The guide must list which systems are covered, for how long, and the percentage of parts and labor the dealer pays. The FTC doesn't allow vague shorthand like "drive train" or "power train" for the systems list.
• The dealer may also check a box saying the manufacturer's warranty still applies to some components.
• A service contract is different from a warranty. If one is offered, the guide has a box for it.

Negotiated a better deal? The guide has to change

If you negotiate different warranty terms, the FTC says the dealer must update the Buyers Guide to match. For example, if a car was listed "as is" and the dealer agrees to a warranty, the "as is" disclosure gets crossed out and the warranty section filled in. At the sale, the dealer must give you the original or a copy of the final guide.

Buying online or getting the car delivered

The FTC says you're entitled to a Buyers Guide if you buy a used car online, too. If a car is delivered to you, ask for the Buyers Guide before you sign, and read it the same way you would on a lot. It pairs well with checking the title history. See my post on running a TxDMV title check before you buy.

A quick Buyers Guide checklist

1. Find the guide on the car and read both sides.

2. Note which box is checked: As Is, Implied Warranties Only, or Warranty.

3. If there's a warranty, check the systems covered, the duration, and the percentage paid.

4. Write any promises onto the guide before you sign.

5. Get an independent inspection with a written estimate.

6. Keep the final Buyers Guide with your paperwork.

How I can help

I'm Steven Wilson, Sales and Social Media & Marketing Manager at Kramer Autoplex. I help Houston and East Texas buyers with good, bad, thin, or no credit by shopping each application across a wide lender network.

• The first step is just your name plus a phone number or email (about 20 seconds), and there's no credit check yet. The full application, which does involve a credit check, comes later.
• A same-day answer on where you stand is typical, but it's not a guarantee of approval.
• Free delivery anywhere in Texas, so you don't have to come to Houston.

Whatever car you pick, read the Buyers Guide first. It's the dealer's written word on what happens after the sale.

When you're ready to see what you qualify for, start here: https://stevensellscars.com/start