As a result of frequent fraud on the used car market, the Federal Trade Commission began requiring used car dealers to provide clients with a document which specifies whether the vehicle comes with a warranty or not and lists all major defects that may occur for a buyer to be able to make a more informed purchase.
Basically, the document offers three options: “as is” that stands for “no warranty”, or a full or limited dealer warranty. Of course, the best option here is a full warranty that covers all possible repair costs during the warranty period. However, it’s also the most expensive one. Meanwhile, a limited warranty means that a dealer is obligated to pay some defined percentage of labor and parts expenses. Implied warranties under your state’s laws may give you additional rights. So read all the documents carefully as it may save you hundreds of dollars.
The phrase “as is” means exactly what it implies. The seller will not be held responsible for any problems or needed repairs after the sale. Typically, the “As Is – No Warranty” caption can be found on a window sticker on vehicles put for sale on used car lots. The sticker is supposed to force a buyer to assume all the risks taken by purchasing such a car. Despite some states already prohibiting the sale of no-warranty vehicles, tons of used cars are still sold that way through other states.
Every used car shopper should be aware of the risk taken by buying a used vehicle. As lots of things may turn out to be wrong sooner or later after a car has been purchased. The troubling aspect is that even if a buyer was given a blatant warning about the potential problems, they often ignore the warning attracted by a low price. Don’t be led by dealers’ tricks, and regardless of your choice of warranty coverage. Always go through the list of major defects by inspecting a car and check the VIN history with ClearVin.