The used car Buyers Guide explained: what "as is" really means

Walk onto any used car lot in the US and you should see a sticker in each car's window titled "Buyers Guide." The FTC's Used Car Rule requires dealers to display one on every used car they offer for sale, including light-duty vans and trucks, demonstrators and program cars. It is one of the few documents in a car deal with a fixed federal format, and it answers a question that matters a great deal: who pays if something breaks after you drive away?

Why the Buyers Guide matters

The FTC says the Buyers Guide overrides anything in your sales contract. If the Guide says the car comes with a warranty and the contract says otherwise, the Guide's terms apply. Dealers must also put a line in the sales contract stating that the information on the window form is part of the contract. And at the sale, the dealer must give you the original or a copy of the Guide showing any final changes you negotiated.

So if a salesperson promises to fix something, ask for it to be written on the Buyers Guide. The FTC reminds buyers that spoken promises are difficult to enforce.

The front of the Guide, box by box

"As Is - No Dealer Warranty." If this box is checked, the dealer pays for no repairs after the sale, and you take on the risk. The FTC's dealer guide says this version may be used only where state law allows it. In some states, "as is" sales require special wording or a separate document.

"Implied Warranties Only." Implied warranties are unspoken, unwritten promises from a dealer to the buyer, such as the promise that the car will work as a car should. In states that limit or prohibit removing them, dealers use this version of the Guide. Depending on the state, the FTC says implied warranty coverage can last up to four years.

"Dealer Warranty." If the dealer offers a warranty, this box is checked and the section is filled in: full or limited, the percentage of parts and labor the dealer will pay, the systems covered and how long coverage lasts. The FTC's dealer guide says dealers may not use shorthand such as "drive train" or "power train"; each covered system must be listed. If there is a deductible, it must be explained.

Non-dealer warranties. A box shows whether the manufacturer's original warranty still applies, which matters on newer used cars.

Service contract. A box is checked if the dealer offers a service contract, unless your state regulates service contracts as insurance.

The Guide also tells you to get a vehicle history report and to ask to have the car inspected by an independent mechanic before you buy.

The back of the Guide

The back lists the major mechanical and electrical systems of a car and some of the serious problems that can occur in each. It also gives the dealer's name and address and the person to contact with complaints. Write that name down.

What "as is" does and does not change

An "as is" sale means the dealer does not commit to paying for repairs. It does not let a dealer misrepresent the car. And there is one important exception: the FTC says if you buy a service contract from the dealer within 90 days of the sale, the dealer cannot remove implied warranties on the systems covered by that contract.

A sample to show how the pieces fit together, for a fictional car at Northgate Motors:

Buyers Guide: As Is - No Dealer Warranty (checked). Service contract available (checked).

Sales contract: 36-month service contract, engine and transmission, purchased at signing.

In that sample, the service contract was bought at the sale, so under the FTC rule the dealer could not remove implied warranties on the engine and transmission. Rules vary by state, so check with your state AG for the details where you live.

Where the Rule applies

The Used Car Rule applies in every state except Maine and Wisconsin, which use their own versions of the Guide, plus Washington, D.C. and several US territories. If the sale is conducted in Spanish, the dealer must post a Spanish-language Guide. The FTC says buyers may also be entitled to a Buyers Guide when buying online. The Rule applies to dealers, not private sellers, and it does not cover motorcycles.

A checklist before you sign

1. Photograph the Buyers Guide on the car before you start negotiating.

2. Check which box is marked: as is, implied warranties only, or dealer warranty.

3. If there is a warranty, note the percentage of parts and labor, the systems covered, the length and any deductible.

4. Make sure any repair promises are written on the Guide.

5. Ask for an independent inspection before you buy.

6. At signing, compare the final Guide with the one in the window and with the contract.

7. Keep your copy with the contract.

Questions to ask the dealer

• Which version of the Buyers Guide applies in this state?

• If there is a warranty, what exactly is covered, and for how long?

• Can I take the car to my own mechanic before I buy?

• Is the manufacturer's warranty still in effect?

• If I buy a service contract, which systems does it cover?

Get a second pair of eyes on your used car paperwork

EasyToDecode is launching soon. You will be able to upload the Buyers Guide and the sales contract and see the warranty box, any service contract and any mismatch between them, each quoted from the documents, with questions ready to send the dealer. See how it works or join the waitlist. For the other lines on the deal, see our guide to reading a buyer's order.