Sunday, March 13, 2016

Laws for Private Auto Sales

When buying a car from a car dealer, you are covered by state laws. These are applicable for used cars bought from dealers as well. When purchasing from a person, or private seller, the same laws do not apply unless specified in a contract. However, most states do have laws in place to offer some protection to the buyer.

Manufacturer's Warranty

    If the car purchased from a private sale is still covered by the manufacturer warranty, then the warranty is still effective after the sale. Ask the seller if there are any warranties left on the vehicle and ask to see paperwork regarding a warranty if there is one. Make sure that the warranty states that it can be transferred.

State Inspection

    In most states, the seller must ensure that the vehicle will pass a state inspection, including the emissions test. If the auto does not pass, the sale would not be valid. Make sure that you have paperwork that states the car has passed.

Used Vehicle Warranty Law

    States vary in the protection offered, but some states have laws to protect those who buy from private sellers. For instance, in Massachussetts a seller must inform the buyer about any known defects that the car may have. If a defect is discovered by the buyer at a later time, and they can prove that the seller did indeed know about it, the buyer can request a refund within 30 days of the purchase.

Odometer Fraud

    It is fraud to turn back the odometer or to reset the mileage in any way. If the buyer proves that the odometer has been reset, not only shall a full refund plus penalties as allowed by law be requird, but in many states it is an offense that is punishable by law.

Written Contract

    If in doubt about the coverage you will have when buying from a private seller, you can write up a contract that both will sign that states the terms of the sale. The contract, as long as signed by both parties, is more binding than an oral agreement would be and will be in effect even if state law does not cover the options written in the contract.

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