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Reminder: FTC Used Car Rule Takes Effect on January 27, 2017

As a reminder to all dealers, the Federal Trade Commission's ("FTC") revisions to the Used Car Rule will take effect on January 27, 2017. The new rule will require dealers to use a new Buyers Guide to be displayed on used vehicles that are for sale. You should contact your forms provider or use the fillable version of the Buyers Guide, which can be found HERE. Dealers are permitted to use the dealership's existing stock of Buyers Guides for up to one year (until January 27, 2018).

Generally, completing the revised Buyers Guide is similar to the current guide. However, there are some differences that dealerships need to be aware of before changing to the new forms. The FTC has provided some guidance HERE to assist dealers in completing the form. You can also find the FTC's press release HERE.

If a dealer chooses to use the old Buyers Guide but wants to disclose the existence of a non-dealer warranty (such as a CPO warranty), then the dealer MUST add the following disclosures below the "Full/Limited Warranty" disclosure:

OADA hosted a webinar on the topic in December. Deanna Stockamp from Stockamp & Brown presented The "New" Used Car Rule: What Has Changed (And What Hasn't) that provided insight to the new rule and how dealerships should prepare for the new form. You can get a copy of the presentation material HERE as well as a recording of the presentation HERE. We strongly encourage you to watch this presentation prior to implementing the changes to your dealership.

OADA will also be publishing an FTC Used Car Rule Implementation article in the February 2017 newsletter for more information and guidance on the Used Car Rule Compliance.