Buying a used car 'as is': what does it mean for me?

Concerns & risks

You're looking at a used car sold 'as is' and want to know your risk.

Causes & evidence

The FTC's Used Car Rule requires dealers to post a Buyers Guide in every used car they offer for sale. The Buyers Guide tells you whether the car comes with a dealer warranty or is sold 'as is,' meaning the dealer doesn't provide a warranty and you pay for repairs after the sale. The Buyers Guide becomes part of your sales contract and overrides contrary terms in the contract. Some states don't allow 'as is' sales or limit them, so the rules depend on where you buy. The FTC recommends getting an independent pre-purchase inspection by a mechanic you choose, checking the vehicle history and checking for open safety recalls.

The Buyers Guide may also mention implied warranties under state law. Private sales between individuals aren't covered by the Used Car Rule. When comparing two similar cars, the one with a clean independent inspection and full records is often the better buy even at a slightly higher price. Keep a copy of the signed Buyers Guide with your sales papers, because it becomes part of the contract and shows exactly what was promised at the time of sale.

Relying on a salesperson's verbal promise when the Buyers Guide says 'as is' leaves you with nothing in writing.

What to do

1. Read the Buyers Guide in the window.
2. Get any promises from the dealer in writing.
3. Arrange an independent inspection before you sign.
4. Check the vehicle history and open recalls by VIN.
5. Check your state's rules on 'as is' sales.

Common mistakes:

• Skipping the inspection
• Trusting verbal promises
• Not keeping a copy of the Buyers Guide

ReportSpeedMan tip: If a dealer won't allow an independent inspection, treat that as a strong reason to walk away.

What I would actually do

I'd pay for an independent inspection before negotiating, then use the repair estimate to adjust the price or walk away.

The trade-off people miss: a 'certified' label or dealer inspection isn't the same as an independent inspection, and it doesn't change an 'as is' sale.

How you can tell it worked

You have an inspection report, a history report and all promises in writing before signing.

Quick FAQ

Can I return an 'as is' car?
Generally no; there's no cooling-off right in most cases.

Is a history report enough?
No; get an inspection too.

What if the dealer promised a repair?
Get it written on the Buyers Guide or contract.

Wrap-up: 'As is' is a warning to do your checks first. Inspection, history, recalls and written promises are your protection.

Wiki: Vehicle Recalls and Fuel Economy Basics.

Buying a used car 'as is': where the facts come from

• FTC: Buying a used car from a dealer
• FTC: Used cars