A lot containing hundreds of new cars
The sales of vehicles gradually increased in 2010, according to the National Automobile Dealers Association. Consumers are growing more confident of the car market, so business is slowly picking up. To make smart purchases, however, buyers must be aware of the guidelines dealers are required to adhere to when selling new cars.
Complete Transparency in Car Advertisements
Dealers take advantage of marketing and advertising in order to make good sales. The statutes for car ad placements vary between states, according to the American Bar Association (ABA). However, the provisions should generally include the car price, its dealers name, the features of the car and warranties that might be claimed for it, states the ABA. Complete transparency is required from the car dealer when placing these ads. Additionally, the ABA says that omitting important facts about the vehicle's condition is considered deceptive, according to law, and the dealer's license could be revoked as a result.
Car Sales Must Have a Contract
Any type of goods sold for a price of $500 or more must be entered into a written contract, as mandated by the Uniform Commercial Code (UCC). Car dealers are expected to present this to their clients to close the sale. The contract must include pertinent information such as the car's description, vehicle identification number (VIN) and warranty agreement. Further, the contract must have the price of the car and payment terms agreed upon, such as deposits required from the buyer or any financing arrangement. If the deal involves a trade-in or a rebate, this also is noted on the contract.
Adherence to the Lemon Law
Although many consumers regard the Lemon Law as applicable to used cars, this law covers new cars, too. Under this law, those who discover their new car is defective can request a refund or replacement from their dealer. These defects can be as minimal as a shoddy paint job or as crucial as a problem with the transmission. This law varies from state to state, according to Autopedia.com, an automotive encyclopedia that provides a comprehensive list of coverage for Lemon Law statutes in the states across America.
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