Attorney General Schwalb Issues Consumer Alert on What to Know When Buying a Car from a Used Car Dealership in DC

Know Your Rights and What to Look for When Buying a Used Car in the District


Attorney General Brian L. Schwalb today issued the below Consumer Alert informing District residents about their rights under District and federal law and what to specifically look out for when purchasing a vehicle at a used car dealership in the District.

CONSUMER ALERT: Know Your Rights and What to Look for When Buying a Used Car in the District

Are you looking to buy a used car from a used car dealer in the District? Used car dealers must have the required licenses and be registered with the DMV to lawfully sell used cars in the District. Under District and federal law, consumers also have the right to certain information before buying a used car. This information includes whether the car has been inspected or had prior repairs, whether the car has any defects, and their rights as a buyer.

Used Car Dealers Must Be Licensed, Registered, and Make Certain Disclosures to Consumers

Used car dealers in the District must have the required licenses to sell used vehicles. This includes a business license and a DC DMV dealership registration.

Dealers must also share certain information with potential buyers under federal and District law. At a minimum, dealers must:

  • Display a sign on the windshield of each used car that says whether the car has been inspected.
     
  • Share known defects with potential buyers in writing.
     
  • Disclose prior repairs over $1,000.
     
  • Display a “Buyers’ Guide” on each used car for sale where it will be easily seen and accessed by potential buyers.
     
  • The Buyers’ Guide must:
  1. Include information about the major mechanical and electrical systems in the car and any defects buyers should know about;
  2. State whether the vehicle is being sold with a warranty. The Buyers’ Guide should not say that the car is sold “as is.” This is not allowed under District law;
  3. Explain what percentage of repair costs a dealer will pay under the warranty;
  4. Recommend getting all promises in writing;
  5. Explain that oral promises are difficult to enforce;
  6. Share that buyers have a right to ask to have a car inspected by an independent mechanic before they buy it;
  7. Disclose that buyers have the right to a vehicle history report and explain how they can get one;
  8. State that buyers have the right to a Spanish buyers’ guide if the sale is done in Spanish; and
  9. Recommend that buyers keep the buyers’ guide for reference after the sale.
     

Tips and Resources for Used Car Buyers

Make sure the dealer is licensed: Check to make sure the used car dealer has the required licenses. You can use the “Verify a Business” function found here on the DC Department of Licensing and Consumer Protection’s website. You can also review the DC DMV’s “Active Dealers Report” available here.

Know your rights when buying a used car: If you are shopping for a used car, consider reviewing the information outlined in this consumer alert before visiting a used car dealership. You also can print out this alert and take it with you.

Review the window displays and Buyers’ Guide: Review the window displays to understand a car’s condition before committing to buying a car. You also should review the Buyers’ Guide ahead of time, so you know your rights as a buyer.

Ask questions: If you need more information to make an informed decision, ask the salesperson questions. For example:

  • Do you have a vehicle history report?
  • Are there any major defects in the car?
  • Have there been repairs made to the car that cost over $1,000?
  • Is the car under warranty?
  • Can I take the car for a test drive?

Get information and promises in writing: If the dealer makes any promises to you, ask the dealer to put those promises in writing. If you have asked for important information about a used car, ask for written copies of the information. Keep copies of any forms you are given, including a copy of the Buyers’ Guide.
 

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