DMV Dealer Continuing Education
Federal Buyers Guide
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The FTC’s (Federal Trade Commission) Used Car Rule requires California Dealers to post a Buyers Guide in every used car they offer for sale.
You must post a Buyers Guide before you display a vehicle for sale or let a customer inspect it for the purpose of buying it, even if the car is not fully prepared for delivery.
You also must display a Buyers Guide on used vehicles for sale at your Dealership -or- at Public Auctions through consignment, power of attorney, or other agreement.
Motorcycles, vehicles sold for scrap or parts (with a Salvage Certificate) and Agricultural equipment are exempt from the rule.
Dealers that sell fewer than six cars in a year do not have to post a Buyers Guide
New Buyers Guide Changes (effective January 27, 2018)
1) “As-Is” now “AS IS – THE DEALER DOES NOT PROVIDE A WARRANTY FOR ANY REPAIRS AFTER SALE”
2) An indication of “DEALER WARRANTY”
- The Vehicle is coverage by a Dealer’s FULL WARRANTY or
- LIMITED WARRANTY where Dealers can disclose what Systems are covered and the Duration of coverage
3) An indication “NON-DEALER WARRANTIES FOR THIS VEHICLE”
- Manufacturer’s Warranty
- Manufacturer’s Used Vehicle Warranty
- Other Used Vehicle Warranty
4) If a SERVICE CONTRACT is available
5) Airbags and catalytic converters added to the list of Major Defects
6) Added Statements:
- Directing Consumers to obtain a vehicle history report and check for open recalls
- Encouraging consumers to visit ftc.gov/usedcars for information on how to obtain a vehicle history report
- Encouraging Consumers to visit safercar.gov to check for open safety recalls
- In Spanish, advising Consumers to ask for the Buyers Guide in Spanish if the Dealer is conducting the sale in Spanish
- In Spanish, explaining what information Dealers may use to obtain a Consumer’s acknowledgment of receipt of the Buyers Guide
Requirements for display
The Guide must be in plain view (with both sides visible) and may be either:
- Hung from the rear-view mirror or outside side-view mirror
- Placed under a windshield wiper.
- Attached to a side window
A Guide in a glove compartment, trunk or under the seat is not conspicuous because it is not in plain sight.
Optional Signature Line
You may include a signature line on the Guide and ask the buyer to sign to acknowledge they have received the Guide.
If you opt for a signature line, you must include a disclosure near it that says:
“I hereby acknowledge receipt of the Buyers Guide at the closing of this sale”