Used cars and the law


There are a number of laws that govern the used car market, both in terms of buying and selling. As a seller, you have a legal obligation to tell the buyer about any faults with the car. Failing to do so could result in the buyer suing you, and the courts could order you to take the car back.

Magnuson-Moss Warranty Act:

This act protects consumers by requiring that used car dealerships provide a warranty on the vehicles they sell. This warranty must be clearly stated in writing and must cover key components of the vehicle.

Lemon Law:

The Lemon Law is designed to protect consumers who purchase a vehicle that turns out to be defective. If a vehicle has serious defects that cannot be fixed, the consumer is entitled to a refund or replacement vehicle.

Used Car Rule:

TheĀ used cars fresno Rule requires dealerships to provide a written disclosure to consumers when they sell a used car. This disclosure must include information on the vehicle’s mileage, as well as any major defects that it has.

Car dealers need a license:

The most important law when it comes to buying a used car is that car dealers need a license. If you buy your car from an unlicensed dealer, you have absolutely no guarantee that the car is what it says on the paper. The license is issued by the government and it can be checked on the internet. You can do this by visiting the website of the Consumer Agency or by calling them on phone.

You have a cooling-off period:

Another law that protects you when buying a used car is the cooling-off period. It means that if you buy a car without seeing it first (for example, you have bought it online or by phone), you have the right to cancel the purchase within 14 days. The cooling-off period only applies if you buy the car through mail order or the internet. If you buy the car at the dealership, you do not have a cooling-off period.


These are just a few of the laws that govern the used car market. By understanding these laws, consumers can be better protected when buying or selling a used car.

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Ankit Nigam
By Ankit Nigam

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