Who Is Responsible for a Defect After You Buy a Car?

Quick Facts About Car Defect Responsibility

• Most used cars are sold “as-is,” which means the dealer offers no warranty, and the buyer agrees to purchase the vehicle in its current condition.
• Some of the remaining factory warranty might be in place, so follow the automaker’s instructions for service if the car has a problem you think should be covered.
• Legitimate disputes can happen, and buyers have some options to reach a resolution with the seller.

Here’s a scenario: You buy a product from a store and take it home, only to discover it doesn’t quite work as advertised. In most instances, you can return the item for a refund with no questions asked. But what about when you buy a problematic used car from a dealer?

It’s essential to understand your options if you just purchased a vehicle and have found a significant defect.

• Warranty or No Warranty? 
• What Recourse Do You Have? 
• How to Prevent the Problem? 

Warranty or No Warranty?

If you bring your newly purchased car home and discover it has a major flaw, the first question you’ll need to answer is whether or not you have a car warranty. With a warranty, you have a decent chance the problem will be covered, depending on the defect or flaw. Most warranties cover parts designed to last the car’s life, such as suspension parts, engine components, and electronics. Generally, warranties do not cover items that wear down, like brake pads or tires.

You may be out of luck if you don’t have a warranty. Used car sales without a warranty are often clearly labeled “as-is.” This indication means the buyer accepts the car “as it is” on the lot in its current condition. The phrase is usually used in conjunction with the term “no warranty” to ensure the buyer knows they are buying a used car as it sits on the lot without any warranty coverage. It doesn’t mean the vehicle is a clunker, but the sale does not include a warranty to cover any mechanical problems. Dealers are legally obligated to explain to the customer whether a car is being sold “as is” or with a warranty.

When you sign the paperwork for an as-is car, it’s yours, and you’re responsible for it — regardless of what happens after you drive off the lot.

What About Recalls?

It is possible that a previous owner failed to address recall notices regarding known problems with the car. Before buying, you can search for recalled vehicles on the National Highway Traffic Safety Administration website or use the recall lookup tool on our sister site, KBB.com. Automakers fix any mechanical or safety problems with recall notices at no charge.

RELATED: Extended Car Warranty: Do You Really Need One?

What Recourse Do You Have?

If you’ve discovered a severe flaw in an as-is car, you’re at the mercy of the dealership or private owner who sold you the vehicle. The dealership or the individual has no legal obligation to help you. After all, you knowingly agreed to purchase the car without a warranty or service contract. This result is the risk you run when you buy a used car as-is.

However, some private sellers with good hearts — or guilty consciences — may feel responsible and give you some money back to fix the issue. Additionally, some dealers don’t want to risk damaging their reputation, leading them to offer you a goodwill gesture. They might provide financial compensation or offer to reduce labor charges to fix the problem. However, they don’t have to do this, and you can’t count on receiving any sympathy, cooperation, or relief.

You’ll find many exceptions throughout auto warranty contracts. If the car you bought from a dealer has a problem you think should be covered by its warranty, follow the contract’s instructions for service. Disputes can happen, and you have options when you cannot reach a resolution with the dealer regarding warranty service and repairs.

• Contact your state’s attorney general office. Its consumer protection division handles complaints around automobiles, among many other things.
• Seek mediation using a dispute resolution organization. Many warranties require mediation before taking steps to file a suit against a dealership or manufacturer. Look to the National Automobile Dealers Association if you purchased the troublesome car from a franchised dealership. It coordinates the Automotive Consumer Action Program (AUTOCAP) for dispute resolution. Check with your region’s dealer association to learn about its mediation program.
• Consult your local small claims court clerk to learn how to file a suit and the dollar limits. You might be able to resolve disputes for small amounts of money without the expense of hiring an attorney.

MORE: What Is More Important When Buying a Used Car: Miles or Age?

How to Prevent the Problem

Buying a vehicle is a big event for most people. Discovering a defect soon after buying a car can be frustrating, disheartening, and downright stressful. To help avoid the problem, always follow our primary tip: Obtain a complete mechanical inspection before buying a used car. The service might cost you a few hundred dollars, but consider it an insurance policy that might fend off many future headaches, uncovering potential problems or existing defects with the vehicle before you sign the paperwork. We have a separate article about what to do if the seller won’t let you get an inspection.

Taking some other additional steps might also help steer you away from a purchase that leaves you with an expensive repair bill after you drive the car home:

• Check the vehicle history report and review the car’s repair record to get a snapshot of its preventive maintenance and previous repairs.
• Read consumer and expert reviews for that car’s make and model to get a better idea of how reliable it’s been for other drivers.
• Check for recalls.
• Take a test drive, and not just a short loop around the block. Spending time in the driver’s seat gives you the opportunity to see, feel, hear, and smell clues that can raise flags of potential problems.

Read Related Articles:

• Should You Consider a Car With an Engine Replacement?
• Should You Buy a Car That Has Been in an Accident?
• What is a Rebuilt Title?

Editor’s Note: This article has been updated since its initial publication.