Hazards of Buying a Used Car

By Donna Herron, Fort Bliss Legal Assistance Office

There are many common issues to consider when purchasing a used car. For example, the purchaser must be aware that the written terms of the contract govern the sale of a car. While an oral or verbal contract can be binding, the law of contracts states that any writing takes priority over anything spoken. This means that if you verbally agree to something with the salesperson, such as a sales price of $5,500, but the terms of the written contract differ, such as a sales price of $6,000, the written terms control. It also means that any oral promises that are not in the written contract may not be enforceable. If there is an oral promise by a car salesperson for ten free oil changes, but a written contract exists stating one free oil change, than only one free oil change is guaranteed. For this reason, it is extremely important that the terms of the final, written contract are accurate and complete.

Another common issue is the myth among car buyers that there is a “three day” or “72-hour rule,” meaning that you can return the vehicle to the dealer within 72 hours and have the contract set aside. This is not true. There is no “three day” or “72-hour rule” on car sales. Once you sign the contract, you are obligated to its terms.

An additional myth among car buyers is that there is some sort of hardship protection if an unexpected event occurs. Suppose the buyer’s family income is cut in half because their spouse lost their job. Alternatively, suppose the buyer’s ability to pay the car note is reduced due to the increase in family spending brought on by a new baby. Is that a hardship that can justify canceling the contract? The answer is no. Since the seller or finance company drafts contracts, language that would protect the buyer’s interests is almost certain not to appear in a standard contract.

A used car may not have a warranty. If there is no written warranty, the vehicle is presumed to be sold “as is.” “As is” means the vehicle comes with no guarantees. If it breaks down a month later, or a week later, or even on the way home from the used car lot, the seller is not responsible. As a result, buyers must be extremely careful when purchasing a used car. Most consumer advocates recommend that an interested buyer have an independent mechanic check any used vehicle before signing the sales contract.

Most importantly, a used car purchaser should NOT give the seller any money until they have seen the title to the car. Buyers should make sure the car is titled in the name of the person they are purchasing it from or that the seller has a power of attorney from the owner whose name appears on the title. When the used car is purchased from a dealer, the dealer is required to file the title application within 30 days on the purchaser’s behalf. When buying the used car from an individual, the purchaser should have the seller accompany them to the county tax office. The tax office will be able to inform the purchaser if the title is correct or has any salvage or legal issues. The purchaser can also check for this information at:  https://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/title-check-look-before-you-buy.

If you have an issue getting a title from a car that you purchased from a dealer, you can make a complaint online with the Texas Department of Motor Vehicles.

For further information on this subject, schedule an appointment at the Fort Bliss Legal Assistance Office by calling (915) 568-7141 or emailing usarmy.bliss.hqda-otjag.mesg.bliss-legal-assistance-office@army.mil.