Know the laws of buying a car

  • Published
  • By Malmstrom Legal Office
MALMSTROM AIR FORCE BASE, Mont. --  Some car dealers have reputations that are less than stellar. Sometimes they are seen as untruthful or trying to take advantage of buyers. Knowing the laws pertaining to buying and selling vehicles can help purchasers make informed decisions, including lemon laws, buyer's guides and buying used vehicles from private sellers.

State lemon laws modify manufacturers' warranties when it comes to new vehicles and may require the seller to "buy back" a vehicle from the consumer if the consumer reports a defect soon enough. Keep in mind that lemon laws vary by state and this article only covers common provisions. First, lemon laws typically only apply to new cars. Usually the statute will designate a time frame in which the consumer must report the defect.  While this period varies from state to state, typical measuring devices include the manufacturer's warranty, the number of months the consumer has owned the car and the number of miles on the car. Second, the defect must be substantial and the dealer must have been unable to fix the defect after a reasonable number of attempts. In many states three to four attempts are considered reasonable.  In the event the vehicle cannot be fixed, the seller must take the vehicle back and refund the consumer's money. This is only the very basic framework of lemon laws; state lemon laws will be more complex.

If purchasing a vehicle from a used car dealer, the dealer must post a buyer's guide in the vehicle. Buyer's guides are not required, however, to be posted on motorcycles and (most) recreational vehicles. The guide must disclose certain things. First, it must state whether the vehicle is being sold with any warranties or "as is." If buying a vehicle "as is," purchasers forfeit any warranties, either express or implied. This means if something goes wrong with the car, buyers will have little to no recourse. Thus, if buying a car "as is," make sure to have an independent mechanic inspect the vehicle thoroughly before purchasing it. The guide must remind the buyer to do so.  Buyer's guides must also state what percentage of repairs covered by a warranty the seller is responsible for paying. Further, these guides must remind buyers to obtain all promises in writing because it is difficult to hold somebody to a spoken promise.  Lastly, the guide must state which major electrical and mechanical systems the car has. 

Buying a vehicle from a private seller (typically defined as an individual who sells less than five vehicles a year) will leave individuals with few, if any protections. Private dealers are not required to post buyer's guides in their vehicles and most states limit the applicability of implied warranties to used cars. This means that used cars sold by private sellers are typically considered sold "as is." Once again, be sure to have a mechanic thoroughly inspect a used vehicle before buying from a private seller because there may be little to no legal recourse if something goes wrong. 

For questions about purchasing a vehicle, individuals can set up an appointment with the legal office by calling 406-731-2878. Appointments are available from 9 - 11 a.m. on Wednesday and walk-in hours from 1-3 p.m. on Thursday.