Overview

The FTC Used Car Rule Buyer’s Guide is the single most important disclosure document for retail dealers selling used vehicles. California dealers must display a completed Buyer’s Guide on every used vehicle offered for retail sale, and follow the Rule’s content, display, language, and recordkeeping requirements to stay compliant. Proper use of the Buyer’s Guide protects consumers and reduces the risk of FTC penalties and DMV disciplinary action.

What the Rule Requires

The Buyer’s Guide must accompany each used vehicle offered for retail sale and must:

• State whether the vehicle is sold “AS IS” or with a dealer warranty and describe any warranty coverage and duration.
• Disclose any available non-dealer warranties (manufacturer or certified pre-owned) and state whether a service contract (extended warranty) is available for purchase.
• List major mechanical and safety systems covered on the Guide (the list now explicitly includes airbags and catalytic converters).
• Provide consumer tips and direct shoppers to vehicle-history and recall resources.

For official guidance and a full explanation of required content, see the FTC Dealer’s Guide to the Used Car Rule: https://www.ftc.gov/business-guidance/resources/dealers-guide-used-car-rule.

Scope & Common Exemptions

The Rule applies to retail sales of used motor vehicles that meet the federal weight tests for consumer automobiles. Typical exemptions include motorcycles, off-road or farm equipment, vehicles sold only for salvage/parts, and dealers who sell fewer than six used vehicles in a 12-month period. For details on scope and exemptions consult the FTC guidance: FTC Dealer’s Guide to the Used Car Rule.

Display, Language & Handling

• Placement: Post the Buyer’s Guide so it is clearly visible on the vehicle (side window, windshield clip, or similar prominent location). The Guide must be displayed while the vehicle is available for consumer inspection or test drives.
• Test Drives & Off‑Lot Sales: Dealers may remove a Guide during a test drive but must promptly reattach it when the vehicle returns. For off-site retail sales or consumer-open auctions, the Guide must be posted where prospective buyers can see it.
• Language: If a sale or negotiation occurs in Spanish, provide and display the Spanish-language version of the Buyer’s Guide and give the buyer a completed copy at signing.
• Sale Acknowledgment: Give the buyer a completed copy of the Guide at closing and retain a completed copy in the deal jacket as part of the transaction record.

Consumer-facing resources recommended on the Guide include the FTC used-car consumer page and the NHTSA recall site: https://www.ftc.gov/consumer-protection/resources/buying-used-car and https://www.safercar.gov/.

Required Elements — Quick Reference

Best Practices for California Dealers

• Verify Division 12 safety compliance and any state-specific equipment requirements before listing a vehicle on your lot—ensure you meet state safety standards prior to retail offering.
• Always use the current FTC Buyer’s Guide form and keep printed/spare copies on the lot for immediate replacement after test drives, detailing, or transport.
• Train sales and lot staff to reattach the Guide promptly after test drives and to replace torn, faded, or incomplete Guides to keep all displays legible and compliant.
• Keep a completed copy of each vehicle’s Buyer’s Guide in the deal jacket. Consider a signed buyer acknowledgment for additional proof of disclosure at the time of sale.
• Audit your inventory regularly to confirm every on‑lot and off‑site retail vehicle has a correctly completed Guide attached and visible to customers.

Recordkeeping & Enforcement

Retain completed Buyer’s Guides in the transaction file. Failure to post, maintain, or provide the Guide as required can expose a dealer to FTC enforcement actions and state regulatory consequences. For federal compliance details and enforcement context, review the FTC resources: FTC Dealer’s Guide to the Used Car Rule and the FTC consumer brochure on buying used cars: https://www.ftc.gov/system/files/publications/539a_buying_a_used_car_0.pdf. California dealers should also be familiar with DMV dealer requirements and possible disciplinary actions; your local DMV industry services pages explain state licensing and enforcement processes: https://www.dmv.ca.gov/portal/vehicle-industry-services/vehicle-dealers/.

Quick Compliance Checklist

1. Attach a clearly completed Buyer’s Guide to every retail used vehicle before public inspection.
2. Use the Spanish Guide in Spanish-language transactions and give the buyer a copy at signing.
3. Retain a completed copy in the deal jacket; consider buyer acknowledgment signatures.
4. Replace Guides after test drives, detailing, or any time the Guide is removed or damaged.
5. Train staff and perform periodic audits to confirm ongoing compliance.

FAQ (Short)

Can I remove the Guide for a test drive?

Yes—temporarily—but you must promptly reattach it once the vehicle returns to the lot or display area.

Is the Buyer’s Guide required for wholesale-only sales?

The Rule applies to retail sales to consumers. Wholesale transactions made to licensed dealers typically do not require a Buyer’s Guide for consumer disclosure purposes.

Where can I find official resources for consumers?

Direct consumers to the FTC used‑car pages and to the NHTSA recall search: FTC used-car consumer page and https://www.safercar.gov/.

Sources

FTC — Dealer’s Guide to the Used Car Rule

FTC — Buying a Used Car (consumer brochure)

NHTSA — SaferCar.gov (recall search)

California DMV — Vehicle Dealers (industry resources)