Washington State Used Car Sales Laws

In March, 2010, Washington added extra protection for used car buyers. The buyer who knows the laws for used vehicle sales has the edge in getting a good deal.

The State's Lemon Law

The Federal Lemon Law was designed to cover vehicles bought new. But under Washington law, it can cover your vehicle if it less than two-and-one-half years old and still has an uncorrectable safety or mechanical problem. The law requires the manufacturer to repurchase or replace the vehicle.

Expressed and Implied Warranties

Read your contract carefully.

State law RCW 62A.2-314 favors warranties in writing but verbal warranties made by the dealer can also be included if provable. Even an as is sale has an implied warranty of merchantability. Washington State's attorney general explains that "the dealer promises the used car will be fit for ordinary driving purposes, reasonably safe, without major defects and of the average quality of similar cars available for sale in the same price range."

Mileage Act

Three million odometers are rolled back every year.

In 1986 the federal Truth in Mileage Act took effect. But still about three million used vehicles each year have altered odometers, with an average 30,000 miles rolled back. If you suspect odometer fraud, contact the Washington Department of Motor Vehicles.

Service Contracts

If you've made no claim on your service contract, you can cancel within the first 10 days and receive a full refund. During the first 30 days, you can cancel and receive a refund less $25 cancellation fee. After 30 days, the refund is prorated minus the above fee.

Right to Cancellation

"No exit" after you drive away.

When you purchase a vehicle at the dealer, you do not have a cooling off period to change your mind. When you sign and drive the vehicle away, you resign your rights to change your mind.

Financing

If financing by the dealer is involved, the contract must be finalized within four working days. If the dealer cannot find financing according to the terms of the contract, he must inform the buyer the deal has fallen through. He must refund the deposit to the buyer, plus title and keys on the trade-in, if any. If the trade-in was already sold, the buyer receives the full cash value of the sale price or the price listed on the contract, whichever is higher.

Payments

Sometimes a dealer will attempt to add on other products to the sale of the vehicle, such as service contracts, security devices, upholstery and paint treatments. All of these must be spelled out clearly and how much they add to your payments. But illegal packing occurs when the dealer adds on an additional $30 to $50 or more, to the monthly payment before you agree to the add-ons. Then, the selling agent writes these add-ons in the contract, saying they are free, included or discounted and there is no additional increase in your monthly payment.

Advertising

"As advertised"... hopefully.

The dealership can be liable if it uses the follow tactics.

Bait-and-switch--You go to a dealership to check out an advertised vehicle but the dealer attempts to upgrade you to a more expensive car.

Sale Price or Special Price proves to be not applicable to a particular vehicle as advertised.

Invoice Price is not the cost of the vehicle to the dealer after deduction of all holdbacks or incentives from the manufacturer are subtracted.