Manufacturer's Warranty

• The vehicle may be covered by a manufacturer's warranty that is still effective at the time the vehicle is resold. Consumers should always ask to see the original documentation, including any warranties still in effect. Some warranties are not transferable. The consumer should examine the warranty closely to find out whether any potential warranties can be transferred.
  
  

State Inspection Requirement

• A handful of states require that a seller's vehicle must be able to pass a state inspection before being sold even by private parties. A consumer is therefore encouraged to check with the state attorney general's office in the state where the purchase will take place in order to see whether this particular protection applies.
  
  

Used Vehicle Warranty Law

• Some states offer protections for consumers who buy used vehicles from private sellers. Under the Massachusetts Used Vehicle Warranty Law, for example, a private seller must inform a potential buyer about known defects that affect the safety of the vehicle or substantially restrict the vehicle's use. Under this legislation, if the buyer discovers a defect as prescribed by the law and can demonstrate that the seller purposely failed to disclose the defect, the sale can be cancelled within 30 days of purchase and the buyer is entitled to a refund.
  
  

Odometer Law

• Many states also have an odometer law to protect consumers from odometer fraud. Under this law, dealers and private party sellers are restricted from turning back or resetting the odometer or mileage indicated on any car sold. The buyer must prove that the seller reset the odometer; upon doing so, she is entitled to damages plus penalties as allowed by law. In many states, odometer fixing is also a criminal offense, and sellers can be prosecuted for such offenses.
  
  

Written Contract Governing Purchase

• Even though many state protections are not applicable to private sellers of used cars, consumers can demand that a contract be written to document the agreement between the parties. This makes the agreement more binding than an oral agreement. If the seller breaches the agreement, the buyer can sue on the basis of the contract to recover damages.
  
  

Conclusion

• Consumers purchasing used vehicles are generally not protected by state law and instead are governed by "as is" principles when purchasing from private sellers. Even so, there are ways for consumers to protect themselves from fraud. Consumers are encouraged to research the condition of the vehicle as well as state laws governing private car sales before making a purchase.