The FTC buyers guide has been around for so long that many dealers take for granted that their personnel understand the requirements. That can be a costly mistake.
Like the cash reporting rule enforced by the IRS, the Used Car Rule enforced by the FTC is regularly the subject of compliance sweeps leading to consent orders with a number of dealers in a geographical area.
The FTC is considering changes to the FTC buyers guide, but dealers should not assume that the FTC will relax its enforcement efforts until the changes are announced. Buyers guide compliance should be a part of a dealer’s compliance program.
So how well do your personnel know the FTC Used Car Rule? Here’s a short quiz to find out.
Answer whether a statement is True or False.
- I can put the completed buyers guide in a clear plastic sleeve that I hang from the rear view mirror.
- I have a customer who wants to take a test drive and he wants me to remove the buyers guide from the side window because he feels it is not safe with his family in the car. I must leave the buyers guide on the car until it is sold.
- The FTC Used Car Rule requires customers to sign a copy showing that they received the buyers guide.
- There is one buyers guide form to be used throughout the United States.
- If the transaction is conducted in Spanish, I cannot just provide a copy of the filled-in Spanish language form to the customer to replace the English language form that was on the car after we agree on the terms of the deal. The Spanish language version must be on the vehicle when the vehicle is on my lot.
- I must have buyers guides on the used vehicles for retail sale on my front lot. The vehicles on my back lot that are not yet ready to go on the front lot do not need buyers guides.
- I have three cars on consignment. I must display a buyers guide on each one.
- I know that the manufacturer’s warranty still applies to the used car I am offering for sale. I may simply mark “balance of factory warranty”.
- With today’s smaller cars, I can reduce the buyers guide somewhat so that it will fit on the rear side window of the vehicle.
- If the customer and I negotiate a change in the warranty described on the buyers guide, it must be noted on the buyers guide.