Start with the Buyers Guide on the window
The FTC’s Used Car Rule requires dealers to post a Buyers Guide on the used vehicles they offer. It shows whether the car is sold “As Is – No Dealer Warranty” or with a warranty, what share of repair costs the dealer pays, and the main systems that can fail. The sales contract must say that the Buyers Guide is part of the contract and overrides any contrary terms. If you negotiated the sale in Spanish, the dealer must post a Spanish-language Guide.
The rule does not cover motorcycles. Private sellers do not have to post a Buyers Guide.
What does “as is” actually mean?
“As is” means the dealer will not pay for repairs after the sale; you take on the risk of defects. It does not cancel a factory warranty that is still in force, and it does not protect a dealer that lied about the car. Some states restrict as-is sales or require special wording; your state attorney general can tell you the rule where you live.
The two implied warranties, explained
Even without a written warranty, the law can imply two promises into a sale. Here is what each one means.
| Warranty | What it promises | Example |
|---|---|---|
| Merchantability | The car will do what a car is supposed to do: it will run | The engine fails a week after the sale from a condition that existed at the sale |
| Fitness for a particular purpose | The car suits a use the dealer recommended it for | The dealer said the truck could tow your trailer, and it cannot |
A dealer that gives a written warranty, or sells you a service contract within 90 days of the sale, cannot disclaim these implied warranties on the covered systems (15 U.S.C. § 2308). A service contract, often called an “extended warranty”, is not itself a warranty.
Which rights remain after an as-is sale?
Depending on how the car was sold, some of these rights may still apply after an as-is sale.
| Situation | What may apply |
|---|---|
| Factory warranty has not expired | The manufacturer must still make covered repairs; in Florida the lemon law can apply inside the 24-month period |
| Dealer gave a written warranty | The written warranty, plus implied warranties that cannot be disclaimed |
| You bought a service contract within 90 days | Implied warranties on the covered systems |
| The dealer lied about the car | State consumer protection or fraud law; ask your attorney general |
| Open safety recall | Recall repairs are free; search your VIN at nhtsa.gov/recalls |
The federal route is explained in our Magnuson-Moss guide.
Which states have used-car lemon laws?
A few states protect used-car buyers directly. New York’s used-car lemon law is one of the clearest, according to the state Attorney General:
| Rule | Detail |
|---|---|
| Who | Cars bought or leased from a New York dealer (not private sellers) for mostly personal use |
| Which cars | Past the new-car coverage (the AG lists more than 18,000 miles and at least two years old), under 100,000 miles, price or lease value at least $1,500 |
| Dealer warranty | 90 days / 4,000 miles (18,001–36,000 miles); 60 days / 3,000 miles (36,001–79,999); 30 days / 1,000 miles (80,000–100,000) |
| Covered parts | Engine, transmission, drive axle, brakes, steering, radiator, alternator, generator, starter and ignition (not the battery) |
| Presumption | 3 or more repair attempts for the same defect, or 15 or more days out of service during the warranty |
| Remedy | Refund of the price, sales tax and fees, minus an allowance for damage; or a replacement you may decline |
| Arbitration | Dealer’s program (not binding on you) or the state program (binding); start within 4 years of original delivery |
Massachusetts protects private-party buyers too: if the seller knew about a serious defect and did not disclose it, you can cancel within 30 days.
What to do if your as-is car has a serious problem
If your as-is car has a serious problem, start with these steps.
- Find your Buyers Guide and contract, and note which box was checked.
- Ask a franchised dealer to look up any remaining factory warranty by VIN, especially powertrain coverage.
- Search open recalls for your VIN.
- If the dealer misrepresented the car, write down what was said and contact your state attorney general.
Then check whether the lemon law still reaches your used car, or read the Texas used-car rules.
Frequently asked questions
Does the lemon law apply to used cars with no warranty?
Usually not. Lemon laws depend on the manufacturer’s warranty. A used car sold as is with no factory warranty left is normally outside them, but fraud, implied warranty and recall rights may still apply.
Can you return a used car sold as is?
Generally no. Federal law does not give a three-day right to cancel. You can return it only if the dealer agreed in writing, misrepresented the car, or your state gives a cancellation right.
What does “As Is – No Dealer Warranty” mean?
The dealer will not pay for repairs after the sale and you take on the risk. Any remaining factory warranty still applies.
Is an extended warranty the same as a warranty?
No. A service contract, often sold as an extended warranty, is a separate contract. Buying one from the dealer within 90 days of the sale stops the dealer from disclaiming implied warranties on the covered systems.
Can I sue a used car dealership for selling me a lemon?
Possibly, but not usually under the new-car lemon law. Claims come from a dealer warranty, implied warranties, a state used-car law such as New York’s, or fraud and misrepresentation. Keep the Buyers Guide, the contract and the ad.
How long can you return a used car if it has problems?
There is no federal return period. Some states give limited rights, such as Massachusetts’ 30-day cancellation for undisclosed defects in private sales; otherwise you rely on warranties and the contract.
Sources
Checked on October 12, 2026. Read how we verify every rule in our editorial policy.