All USA-based used car dealers are required to follow the guidelines contained in the 'Used Car Rule' publication, issued by the Fair Trade Commission. The only relaxation being, that if they sell less than 5 cars in a calendar year, they are not treated as used cars dealerships, and don't have to abide by these laws.
The basic responsibility of used car dealerships is to position a buyer's sign that would be adjacent to the vehicle offered for sale that states 'Used car for sale'. It must have a prominent position on or inside the vehicle so the buyer could take a look and immediately notice and use it for the purpose of buying.
Relevant information about the car for sale is displayed on a sign placed on the car, or inside on the windshield. It contains the following data: year of manufacturing, price, model name and its identification number. Plus, any relevant info can be added there, that will help in better communication between both parties. Including dealership's contact details is obligatory.
Used car dealerships must also indicate important information in the buyer's guide in accordance with the national automobile dealers association used car guide such as the following: information that would tell if the vehicle goes with a warranty or not; the different services that the car dealer could offer (insurance, accessories, etc.); other promises that must be put into writing; the various mechanical and electrical systems; which parts of the used car should the buyer watch out for; a reminder for the buyer to look for an independent mechanic to handle inspection of the used car for sale, before he comes up with the final decision.
The question: which vehicles are considered to be 'used'? The answer: all that have been titled. It's up to the individual dealership to provide proof of the ownership to the prospective buyer, and help him/her to confirm that the vehicle identification number is listed in the documents correctly.
Nowadays, used car dealers tend to group in chains of dealerships. This is often dictated by the commonality of the make they sell, or for the economical interests. Indeed, used car dealers can better serve customers by exchanging relevant information about the stocks of used vehicles they have. Online presence makes it even easier. Members of a dealership group have their used cars available for sale, listed on one website. There the prospective customer can browse and select his/her favorite unit.
The requirements imposed on used car dealers by the state and federal authorities are designed to protect the customer and streamline the functioning of the second hand car industry in the US. Used cars dealerships are then able to maintain a uniform standard of service, and customers feel fully protected, having legal redress whenever their rights are violated.
Opinions are divided, whether the used car business is servicing its customers the best it can. Dealers complain that customers are more interested in haggling and tire kicking, than in selecting one of many reliable used vehicles that they keep in stock. Buyers begrudge the fact that they don't really know the full history of the vehicle they are offered for sale. Another gripe is the profit margin that the dealerships are able to achieve. Eventually, it all comes to the equilibrium, as dictated by the market forces. One final word: do your research before you sign the title transfer papers!
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