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How to Complete the New Buyers Guide


S. Allen Monello, D.P.A.

Managing Member

Automotive Industry Center for Excellence, LLC


You must begin using the new Buyers Guide no later than January 28, 2018. After that date it will be illegal to use the old version of the Buyers Guide.

Following are some guidelines on how to complete the new Buyers Guide:

1. As with the old Guide, if you are offering the unit AS IS, check the AS IS box.

2. If you are offering a dealer warranty, check the DEALER WARRANTY box, then check LIMITED WARRANTY and enter what percentage of labor and parts you will cover. Under SYSTEMS COVERED describe the system(s) you will cover. NOTE:­ It is unlawful to use the terms “Power Train” or Drive Train.” Under DURATION enter the number of days and the number of miles you will cover the listed systems. Be sure to make the distinction “WHICHEVER OCCURS FIRST (e.g., 90 days or 3,000 miles, WHICHEVER OCCURS FIRST). If you want to disclaim all warranties on other systems that aren’t covered, you may enter the following language below the systems you are covering:

Dealer Disclaims All Warranties, Express or Implied, on Other Systems or Parts of this Vehicle.

REMEMBER – you are required to have a separate warranty document. Another federal rule requires that you display a written warranty in close proximity to the vehicle or make it available to consumers, upon request, before they buy. You must also post prominent signs to let customers know that warranties can be examined upon request.­The Warranty must be printed no smaller than 10-point type.

3. If the manufacturer’s warranty hasn’t expired, you may disclose this by checking the box MANUFACTURER’S WARRANTY STILL APPLIES. If you choose to disclose that a manufacturer’s warranty still applies, you need only check this box. No other language – as required under the previous rule – must be stated. You are not required to describe details about the warranty. You also are permitted to check the AS IS – NO DEALER WARRANTY box when checking the MANUFACTURER’S WARRANTY STILL APPLIES box. And you are permitted to write the following disclaimer in the SYSTEMS COVERED/DURATION section:

The dealership itself assumes no responsibility for any repairs, regardless of any oral statements about the vehicle. All warranty coverage comes from the unexpired manufacturer’s warranty (or from the manufacturer’s used car warranty, if applicable).

4. If there is a manufacturer’s used car warranty that applies, you may check the box MANUFACTURER’S USED VEHICLE WARRANTY APPLIES. An example of this coverage could be certified pre-owned types of coverage. You are not required to describe details about the warranty (see attached example).

5. If there is a third-party warranty that applies (for example, you provide a third-party warranty with the sale of the unit) check the box OTHER USED VEHICLE WARRANTY APPLIES. You are not required to describe details about the warranty. For this and the Manufacturer’s used vehicle warranty you may also check the AS-IS NO DEALER WARRANTY box and enter the disclosure shown in Item 3.

6. Since you sell service contracts, check the box SERVICE CONTRACT.

7. On the back of the form, you are required to enter your dealership name, address, telephone number and email address. You are also required to enter the name and telephone number of the person to contact for complaints. It is recommended that you also include the person’s job title (e.g., Customer Service Manager) so the customer will know who to contact for complaints in case the named individual leaves your dealership.

8. If you conduct the sale in Spanish, you must post a Spanish language Buyers Guide on the vehicle before you display or offer it for sale.

9. If you wish to add an optional signature line for the customer, include a disclosure near it that says: “I hereby acknowledge receipt of the Buyers Guide at the closing of this sale.” The signature line and disclosure must appear in the space provided for the name of the individual to be contacted in the event of complaints after the sale (see attached example).

To learn more about the requirements of the new Buyers Guide, go to https://www.ftc.gov/tips-advice/business-center/guidance/answering-dealers-questions-about-revised-used-car-rule.

Do you have employees who need compliance training on titles and registrations, IRS 8300 cash reporting, Safeguards and Red Flags Rules, OFAC, sales tax or other Florida state and federal regulatory topics? We will bring live training to your dealership! ­ ­For more information contact Allen at Allen@TheAICE.com­ or (727) 623-9075









Industry News

FTC goes used car shopping, “test drives” 2300 vehicles

By: Lesley Fair | Jul 12, 2018 11:03AM

So we went used car shopping recently – the FTC and 12 other law enforcement agencies. We visited 94 dealerships in 20 cities across the country. Yes, we saw some low-mileage cream puffs, but that’s not what we were in the market for. We wanted to see ­if dealerships were displaying the revised Buyers Guide­­ required as of January 28, 2018. The results proved interesting.

According to the FTC’s­­Used Car Rule, dealers must display the Buyers Guide in the window of used cars. Consumers look to the Guide for important information to consider when used car shopping. After getting feedback from the public, the FTC announced­­amendments to the Used Car Rule in November 2016­­­­­ and set January 28, 2018, as the effective date by which dealers had to display the revised Buyers Guide on all used vehicles they offer for sale. Among other things, the revised Buyers Guide:

  • Adds a box that dealers can check to indicate if a vehicle is covered by a third-party warranty and if a service contract may be available;
  • Adds a box to indicate that an unexpired manufacturer’s warranty applies;
  • Adds air bags and catalytic converters to the list of major defects that may occur in used vehicles;
  • Tells consumers about getting a vehicle history report and checking for open recalls; and
  • Adds a statement in Spanish to the English-language Buyers Guide, advising Spanish-speaking consumers to ask for the Buyers Guide in Spanish if the dealer is conducting the sale in Spanish.

The compliance sweep was conducted between April and June 2018 at dealerships in California, Florida, Illinois, New York, Ohio, Texas, and Washington. Inspectors found Buyers Guides on 70% of the more than 2,300 vehicles inspected. In almost half of those instances, it was the proper ­revised­ Buyers Guide. In other cases, it was the old version. Of the 94 dealerships inspectors visited, 33 had the revised Buyers Guide on more than half of their vehicles. And kudos to the 14 dealerships that had the revised Guide on all of their used cars.

FTC staff sent letters to each dealership detailing the results of the inspection and offering resources to help them comply with the amended Rule. What’s the next step? In the coming weeks, inspectors will be returning to the dealerships that weren’t displaying the revised Buyers Guide. Given the potential civil penalty of $41,484 per violation, we hope to see the new Buyers Guide in the windows of all used cars.


The Automotive Industry Center for Excellence, LLC (AICE) is DMV-approved to provide pre-licensing education to Florida motor vehicle, RV and mobile home dealers. AICE provides a user-friendly course packed with valuable information that dealers must have to remain in compliance with Florida and federal laws. With an AICE pre-licensing certificate, you will have taken the first step to being on your way to the auction!

To sign up for an online pre-licensing course, click here. You will be glad you did!


Allen can be reached at (727) 623-9075 or by email at Allen@TheAICE.com.



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