Independent research. Autwary does not use affiliate links, earn commissions or accept payment for rankings. How we review
A used car from a dealer comes with a warranty only if the window sticker says so. Every dealer has to post the FTC Buyers Guide on each used car it offers. That form tells you whether the car is sold “As Is – No Dealer Warranty” or with a dealer warranty, and if so, what systems are covered, for how long and what share of the repair cost the dealer pays. If the Buyers Guide shows a warranty, the dealer has to honor it even if the sales contract says “as is.” And if you buy a service contract from the dealer within 90 days, the dealer cannot cancel the implied warranties on the parts that contract covers.
Here is how to read the Buyers Guide, what each box means for your repair bills, and how it fits with an extended warranty.
What the Buyers Guide is and where the rule comes from
The Buyers Guide is required by the FTC’s Used Motor Vehicle Trade Regulation Rule (16 CFR Part 455). According to the FTC’s guide to buying a used car from a dealer, dealers must display it on every used car, light-duty truck and van they offer, including demonstrators and program cars, and give it to you after the sale. Motorcycles and most recreational vehicles are not covered. If the sale is conducted in Spanish, you are entitled to a Spanish version. Maine and Wisconsin use their own state versions.
Two points on the form matter more than the rest:
- It overrides the sales contract. If the Buyers Guide shows a warranty and your contract says “as is,” the dealer must provide the warranty on the Guide. Any warranty terms you negotiate have to appear on both documents.
- Spoken promises are hard to enforce. If a salesperson says “we’ll take care of the transmission,” get it written on the Buyers Guide.
The three situations the Buyers Guide can describe
| What the Guide shows | What it means | Who pays for a repair after you drive off |
|---|---|---|
| As Is – No Dealer Warranty | The dealer makes no promises about the car’s condition | You, unless state law limits as-is sales or a remaining factory warranty applies |
| Dealer Warranty: Limited | Covers only the systems and duration listed, and the dealer pays the percentage shown | Shared: the dealer pays its stated percentage on covered systems; you pay the rest |
| Dealer Warranty: Full | Free repairs, available to any owner during the term, with a replacement or refund if repairs fail | The dealer, for covered problems during the term |
Most used-car dealer warranties are limited. The Guide also lists any unexpired manufacturer warranty, which still applies to a used car if it has not run out by time or mileage. You can confirm what remains by giving the VIN to a franchised dealer of that brand. Our guide to manufacturer warranty vs extended warranty overlap explains how the two fit together.
Implied warranties: the protection you may have without a written warranty
Unless a car is sold “as is,” state law gives you implied warranties even when nothing is written down. The FTC describes two:
- Warranty of merchantability: the car has to do what a car is supposed to do, which means it has to run. You must show the defect existed when you bought it.
- Warranty of fitness for a particular purpose: it applies when the dealer recommends the car for a specific use, such as towing a trailer.
Depending on the state, implied warranty coverage can last up to four years. Some states restrict or ban “as is” sales of used cars, and rules on disclosures and cancellation rights vary, so check with your state attorney general’s consumer protection office.
The 90-day rule that links dealer warranties and service contracts
This is the detail most buyers miss. If you buy a service contract from the dealer within 90 days of buying the car, federal law does not let the dealer eliminate implied warranties on the systems that contract covers. The FTC’s example: a car sold “as is” with a service contract on the engine still carries implied warranty coverage on the engine. Ask for written confirmation that the service contract is in effect, and keep it with your Buyers Guide.
That gives you two possible paths if a covered part fails early: a claim under the service contract, and an implied warranty claim against the dealer. The service contract claim is usually faster; the implied warranty matters if the contract claim is denied, for example as a pre-existing condition.
A worked example with numbers
The figures below are illustrative. You buy a used SUV for $18,000. Three weeks later the transmission needs a $3,200 repair. Here is what you would pay under each Buyers Guide outcome:
| Buyers Guide / extra coverage | Dealer pays | Service contract pays | You pay |
|---|---|---|---|
| As Is, no service contract | $0 | $0 | $3,200 |
| Limited dealer warranty: 50% of parts and labor on the drivetrain, 30 days or 1,000 miles | $1,600 | $0 | $1,600 |
| As Is, plus a dealer-sold service contract covering the transmission ($100 deductible), claim approved | $0 | $3,100 | $100 |
| Same as above, but the claim is denied | Possible implied warranty claim (90-day rule) | $0 | $3,200 up front, then dispute |
The last row is the one to remember: the 90-day rule does not pay you automatically, but it gives you a legal argument against the dealer that an “as is” sticker would otherwise remove.
If the dealer also offers you a service contract, find out who administers it. Many independent dealers sell plans from companies like Smart AutoCare, which you cannot buy or price online, and our Smart AutoCare review lists the questions to ask before you sign.
Before you sign: a checklist for dealer used-car purchases
- Read the Buyers Guide on the window and photograph it.
- If there is a dealer warranty, note the systems, the percentage the dealer pays and the duration.
- Check the VIN for open safety recalls on NHTSA’s recall lookup.
- Have an independent mechanic inspect the car. A vehicle history report shows accidents and some flood damage but usually not mechanical problems.
- If you are offered a service contract, ask what it overlaps, what it excludes, who administers claims and what the cancellation refund is. See third-party vs dealer extended warranties and red flags before signing.
- Make sure the final contract matches the Buyers Guide, and keep both.
FAQ
Do used cars from dealers come with a warranty?
Not automatically. Check the Buyers Guide: it states whether the car is sold as is or with a dealer warranty, and lists any remaining manufacturer warranty.
What does “As Is – No Dealer Warranty” mean?
The dealer is not responsible for repairs after the sale. You take the risk of any problems, unless your state limits as-is sales, a manufacturer warranty still applies, or you bought a dealer service contract within 90 days.
Can I return a used car if something breaks right after I buy it?
There is no general federal right to return a used car. Your options depend on the Buyers Guide, any written warranty, implied warranties and your state’s rules. Contact the dealer in writing first, then your state attorney general if needed.
Is a dealer’s “extended warranty” the same as a dealer warranty?
No. A dealer warranty is included in the price and shown on the Buyers Guide. An “extended warranty” sold for an extra charge is a service contract, a separate product with its own terms, deductible and cancellation rules. See how to cancel an extended car warranty if you change your mind.
Does the Buyers Guide apply to private sales?
No. The Used Car Rule applies to dealers. Private-party sales are usually as is, which makes an independent inspection even more important.
Autwary is supported by advertising and has no paid relationship with the companies we review. See our Advertising Disclosure.
