What Are My Rights When Buying a Car?

In a perfect world, when you go to buy a new or used vehicle, all dealers and private sellers seek your best interests instead of just profit. The reality is that while most dealers and sellers treat customers fairly, some aren't above acting as con artists. Understanding your rights as a consumer can protect you from possible abuse.

Good Title

When you purchase a vehicle, you have a right to a clear or "good" title. This means that you can prove that you (or your lender) are the owner of the vehicle. This is important, because you need a title to register your vehicle, and in most states, to sell it, too. Having the title also prevents anyone else from asserting ownership of the vehicle, which means you legally can list the vehicle properly as an asset.

Warranties

When you purchase a new vehicle from a dealer, you have a right to a warranty through the manufacturer or dealership. The warranty essentially guarantees that the vehicle will be in working order and that it should not have unexpected repair costs. If you buy a used vehicle, dealers may sell the car without a warranty, but they must post a Buyer's Guide on the vehicle and check the "As Is -- No Warranty" box. If you buy the car with this box checked, you accept responsibility for the vehicle's condition.

Accurate Data

As a car buyer, you are entitled to accurate data about the vehicle you're acquiring. This includes information about the condition of the vehicle (this usually is detailed in the warranty, if applicable), the price, the odometer reading and number of previous owners. Car sellers should not misrepresent the vehicles they plan to release. You also have a right to know your credit score and how your dealer is using the score to determine your financing options.

Cooling Off Period

In some states, you may be entitled to a cooling-off period. This means that you can return the vehicle and cancel your contract without penalty if you have buyer's remorse. Depending on the state, the cooling-off period may be anywhere from 48 hours to one week. Some states, such as California, offer cooling off periods, but only if you purchase the option with your sales contract, and in some cases, the cooling -off period applies only to used vehicles. You should check with your local department of motor vehicles if you aren't sure of the laws that apply in your state.