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9.2 Disclosure Statements
As a dealer, you must provide warranty disclosure statements to buyers that clearly explain what warranty, if any, covers the vehicle. For used vehicles, this disclosure works in conjunction with the FTC Buyers Guide. The Buyers Guide tells the buyer whether the vehicle is sold “As-Is” or with a warranty, and if with a warranty, what the terms are. Your separate warranty disclosure should provide additional detail.
If you’re selling a used vehicle “As-Is,” the disclosure must be clear and unambiguous. The buyer must understand that “As-Is” means the dealer is not providing any warranty, and the buyer will be responsible for all repair costs after the sale. However, even in an “As-Is” sale, the dealer must still disclose known defects. “As-Is” doesn’t mean you can hide problems — it means you’re not warranting against problems that may arise in the future.
For vehicles sold with a warranty — whether express or implied — the disclosure must specify the warranty coverage: what systems are covered, what the duration is, what the dealer’s obligation is (percentage of repair costs), and any deductible. These disclosures are critical because they set the expectations for both parties. A vague warranty disclosure invites disputes.