Hot Wheels
We live in Indiana, land of the Motor Speedway, with no real public transportation system. Therefore, most people will, at some point, buy a car. Probably a used car. There are some key legal points you need to know before you hand over your hard earned cash for that hot set of wheels.
Used cars are usually sold “as is”, which means if there are any problems or defects with the car, the buyer is stuck. Contrary to popular opinion, there is no 24 hour or three day return policy by law. The purchase contract may provide you with that, but the law does not. Dealers must display a notice, known as a “used car statement” in the window, stating whether the car is sold with a warranty or “as is”. The notice must identify 1) the year, make, model and VIN (or vehicle identification number), 2) the warranty or if the car is “as is”, 3) the details of the warranty (if there is one), including what is covered and for how long, 4) the dealers name and address. Private sellers are not required to do any of this. It must be assumed that all cars bought from private sellers are “as is” and the car should be checked out by a knowledgeable mechanic before purchase.
A dealer, or a private seller who sells more than 5 cars a year, must disclose before purchase and in writing if a car has been salvaged or rebuilt. This disclosure applies to all cars, semi’s, and RV’s made within the last seven (7) years. The BMV may extend the time frame for this notice. If the seller fails to disclose this information and you discover it after purchase you may sue for damages and attorney fees. The court may also award up to three times the actual damages or $2,500, whichever is greater, as punishment.
The internet can be a valuable resource in determining the value for a particular car. You can also find places on the internet to enter the VIN number and find out if the car was involved in an accident in the past. Another easy way to check on the car’s history is to ask to see the title. Check the mileage on the title to see if there were too many or not enough miles put on the car between purchasers. “Salvage” or “Rebuilt” on the title indicates the car had been wrecked and rebuilt at some point. “Buy Back” indicates the car was repurchased by the manufacturer as a “lemon”. “Flood Damaged” indicates the car was under water. An out of state title which indicates the car had been determined to be “Junk” in another state cannot be titled in Indiana. Obviously, if the seller or dealer will not show you the title, you should look elsewhere.
Speaking of mileage, signs of odometer fraud include 1) odometer numbers of different colors, 2) scratches on the instrument panel, 3) less than average miles per year for the age of the car (10,000 to 15,000 is average), 4) oil change stickers in the window or on the door frame that do not agree with the odometer, 5) more wear on the driver’s side carpet or seats.
Federal law requires disclosure of the total miles on the odometer, or notice that the actual mileage is unknown if the seller is aware that the actual mileage differs from what the odometer shows. This notice must be in writing at the time of sale. The title contains a place for the mileage disclosure. This disclosure is NOT required if 1) it is not self-propelled, (Hey, I don’t write the law, I just report it!) 2) the vehicle has a GVW of more than 16,000 pounds, 3) it is 10 years old or older. There are criminal penalties as well as civil remedies for odometer fraud.
There are many pitfalls to buying a used car. The primary point to keep in mind is Buyer Beware. Spend some time investigating the car’s history and value. Spend some money now to have it inspected, rather then spending some later to have it repaired. Happy motoring!