Proposed FTC Changes Will Help Used Car Buyersby Steve Cypher on Wednesday, December 5th, 2012
The Federal Trade Commission (FTC), in a recent press release, announced that it was considering making changes to the Used Car Rule that was last reviewed in 1995 – changes, by the way, that could help used car buyers with credit issues.
At least that’s the way we look at it here at Auto Credit Express, where, for the past twenty years, we’ve been helping consumers with less than perfect credit find car dealers for their best opportunity at approved auto loans.
Buying used cars
One of the keys to successfully completing high-risk car loans is choosing the right vehicle finance. In most cases, buyers with past credit problems will choose a used car because they’re more affordable.
It also follows that it’s important for these buyers to pick a used car that won’t cost them hundreds or thousands of dollars in additional repair costs. This means that buyers with bad credit need to trust that the vehicle they’re buying is exactly what it’s represented to be.
This is especially important with used cars, since these vehicles aren’t covered by those state lemon laws that cover new cars.
It also means that buyers need to clearly understand any warranty coverage a particular used car might have as well as being reminded of what they can do to ensure the vehicle they’re buying doesn’t have any unknown problems or hidden damage.
In a press release issued earlier this week, the FTC made the following announcement:
As part of the Federal Trade Commission’s systematic review of all of the agency’s rules and guides to ensure that they are up-to-date, effective, and not overly burdensome, the FTC is seeking public comment on proposed changes to the Used Car Buyers Guide required by the agency’s Used Car Rule. The Commission is also issuing a final rule that makes technical corrections and revises the Spanish translation of the Buyers Guide. The Buyers Guide gives consumers critical information about who will pay for repairs if something goes wrong with the car they buy.
The Commission is now seeking comments on potential revisions to the Rule that would empower consumers without adding burdens to businesses, including:
• adding a statement to the Buyers Guide encouraging consumers to seek vehicle history information and directing consumers to an FTC website for more information about vehicle histories
• adding a statement in Spanish to the Buyers Guide directing Spanish-speaking consumers to ask for a copy in Spanish, if they desire
• adding catalytic converters and airbags to the List of Systems on the back of the Buyers Guide
• placing boxes on the back of the Buyers Guide where dealers will have the option to indicate whether (1) the manufacturer’s warranty still applies; (2) the manufacturer’s used vehicle warranty, such as a manufacturer’s certified used car warranty, applies; or (3) some other used vehicle warranty applies.
The proposed Buyers Guide also makes some minor changes to improve readability.
The release goes on to state that both the proposed Buyers Guide as well as the Current Buyers Guide:
• recommend that consumers ask about an independent mechanic’s inspection before purchase
• provide information about warranties
• list a vehicle’s major systems and the major defects that may occur in them
• and warn consumers that they should get all promises in writing because spoken promises are difficult to enforce
One other important thing to remember is that “The Buyers Guide disclosures are incorporated by reference into the sales contract, and govern in the event of an inconsistency between the Buyers Guide and the contract.”
As we see it
The new proposed changes to The Buyers Guide should help all buyers, including those with bruised or damaged credit.
One more tip: At Auto Credit Express we specialize in helping applicants with car credit issues find dealers for their best chances at approved bad credit auto loans.
So if you’re ready to reestablish your auto credit, you can begin now by filling out our online auto loans application.