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Used car rule updated by FTC

Those who buy used cars in California and other states must be able to see what is referred to as a buyers guide on the vehicle. The guide provides information about the vehicle's warranty and other facts that could prove useful in making a buying decision. This rule has been in place since 1985, and the Federal Trade Commission has recently made some changes to it.

Now, the guide must tell buyers whether or not the vehicle is eligible for a third-party warranty or if it can be covered by a service contract. If the car has air bags, buyers must be told that they could be defective. Furthermore, it must say that a buyer can check for open recalls and that it can be a good idea to get a used car history report prior to making a purchase.

Anyone who is looking to buy a car should ideally obtain a used vehicle history report. This provides information such as how many previous owners it had or if it has any frame or water damage. If a dealer fails to disclose information related to previous accidents or previous damage, it may be engaging in fraud. An individual may be entitled to compensation for the price of the vehicle and money spent trying to fix it.

An attorney may be helpful in establishing that fraud took place. He or she may use information on the buyers guide or the lack of a guide as evidence that a dealer misrepresented a vehicle to a consumer. Statements made by the dealer about the vehicle's condition that are contradicted by a history report or other sources may also help to show that fraud occurred. Cases may be settled out of court or resolved through a trial.

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