Definition
The FTC Used Car Rule is a federal regulation that requires dealers to display a Buyers Guide on each used vehicle they offer for sale. The guide tells shoppers whether the vehicle is sold "as is" or with a warranty, and what any dealer warranty covers.
Pasch Group Dealer Glossary · checked against primary sources October 2026
What it means for a dealership
The rule covers dealers that sold or offered for sale five or more used vehicles in the previous 12 months, so it reaches franchise and independent stores alike. Before a used vehicle is offered for sale, the dealer must fill in the Buyers Guide and display it prominently on the vehicle, with both sides readable. It can come off for a test drive but must go back on afterward.
The Buyers Guide is part of the deal. Its final contents are incorporated into the contract of sale and override any contrary terms in the contract, and the buyer gets the guide or a copy. Dealers can’t make oral or written statements that contradict it. Warranty terms can be negotiated, as long as the final terms appear in the contract and on the buyer’s copy. When a sale is conducted in Spanish, the guide and the contract disclosures must be in Spanish.
The rule has been in force since 1985. The FTC updated it in 2016, revising the Buyers Guide and its Spanish translation among other changes. State laws may add their own requirements, so check with your counsel.
Questions
Do certified pre-owned vehicles need a Buyers Guide?
Yes. Certified pre-owned vehicles are used vehicles under the rule, so they need a Buyers Guide like any other used vehicle. When a vehicle comes with a dealer warranty, the dealer marks the warranty box and briefly describes the terms.
Sources
- 16 CFR Part 455: Used Motor Vehicle Trade Regulation Rule (eCFR)
- 16 CFR Part 455: Used Motor Vehicle Trade Regulation Rule (LII)
This explains the rule in plain English. It isn’t legal advice: check how it applies to your dealership with your counsel.
Updated October 11, 2026