30+ Years of Dealership & Manufacturer Expertise - Approved Academy
30+ Years of Expert Retail Dealer Operations and Manufacturer Experience - Approved Course
8.10 Buyers Guide & Foriegn Language Contracts
The FTC Buyers Guide is one of the most fundamental compliance requirements for used vehicle sales, and surprisingly, it’s one of the most frequently violated. The Buyers Guide requirement comes from the Federal Trade Commission’s Used Car Rule, found at 16 CFR Part 455. Understanding this rule is essential for every dealer who sells used vehicles at retail.
The rule is straightforward: every used vehicle offered for sale at retail must display a Buyers Guide on the vehicle. Not in a drawer. Not in a file. On the vehicle itself, posted in a conspicuous location — typically in a side window where a buyer can read it from outside the vehicle. The Buyers Guide must be displayed before any negotiations with a buyer begin. It’s not something you pull out during the paperwork process — it’s something the buyer should be able to see and read when they’re browsing your lot.
The Buyers Guide must contain specific information: the vehicle’s make, model, year, and VIN; whether the vehicle is being sold “As-Is” or with a warranty; if a warranty is offered, the specific terms (duration, covered systems, percentage the dealer will pay for repairs); a statement that the buyer should ask to have the vehicle inspected by an independent mechanic; and a statement that the buyer should get all promises in writing. The Buyers Guide becomes part of the sales contract — its terms override any contrary provisions in the contract.
Now, here’s a critical detail: motorcycles are excluded from the FTC Used Car Rule definition of “vehicle.” The rule applies to cars, light trucks, and vans — but not to motorcycles. If you sell used motorcycles, the FTC Buyers Guide is not required on those vehicles. However, all other used motor vehicles offered for retail sale must have a Buyers Guide.
Foreign Language Mandate: If you speak to the salesperson or negotiate primarily in Spanish, the dealer must display and provide you with the Buyers Guide translated into Spanish before the sale concludes. The English-language form also contains a statement advising Spanish speakers to ask for the form in Spanish.
Contract & Addendum Translations
- When It Applies: If you negotiate the purchase or lease of a car primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, the dealer must provide a written translation of the contract.
- Timing: This translation must be provided in the language the negotiation took place in before you sign the English-language contract.
- Penalties for Non-Compliance: If a dealer fails to provide the required translation, the buyer has the right to cancel the contract, return the vehicle, and receive a full refund.
When the Language Rule Does Not Apply
The foreign language contract requirement does not apply if you use your own interpreter (who is not a minor and not provided by the dealer) or if you initiate the transaction in English.
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⚠ Key Compliance Point FTC Buyers Guide (16 CFR Part 455): • Required on all used vehicles offered for sale at retail • Must be displayed on the vehicle in a conspicuous location • Must designate “As-Is” or “Warranty” — becomes part of the sales contract • Motorcycles are EXCLUDED from the FTC Used Car Rule • Penalty: up to $50,120 per violation |
The penalty for failing to display a Buyers Guide is severe: up to $50,120 per violation. Each vehicle without a properly displayed Buyers Guide is a separate violation. If DMV or FTC finds 10 vehicles on your lot without Buyers Guides, that’s potential liability of over $500,000. This is not a technicality — it’s a significant consumer protection requirement with major financial consequences for non-compliance.
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❌ Common Mistake A dealer posts Buyers Guides on vehicles when they first arrive on the lot, but after a few weeks of weather exposure, the guides become faded and illegible, or they blow off and aren’t replaced. A DMV investigator visits the lot and finds 8 vehicles without readable Buyers Guides. Each one is a violation. Regularly inspect your lot to make sure every used vehicle has a current, legible, properly displayed Buyers Guide. |