Office of the Maine Attorney General

Buying a Used Vehicle

Here you will find information on how you can protect yourself when purchasing a used motor vehicle. For more information, see the Secretary of State’s Used Car Buyer’s Guide.

Buying a Used Vehicle downloadables

Guide to Buying a Used Vehicle

Buying A Used Vehicle

Buying a used car can sometimes be the best value for your money but can be a gamble. The Maine Used Car Information Act requires all car dealers[i] to ensure that a vehicle can pass state inspection and to post certain information on used cars offered for sale (the “Buyer’s Guide”). As a buyer, if the dealer has not followed those requirements and refuses to repair your car, you may be able to force the dealer to take the car back and return your money. Further, if you go to court and win, the judge can also order the dealer to pay you liquidated damages of between $100 and $1,000 and your attorney’s fees.

However, if the dealer has fully complied with the Used Car Information Act, offered no express warranties, and has properly disclaimed any implied warranties,[ii] then the car needs only to pass state inspection. If it passes inspection, and the dealer has not significantly misrepresented the condition of the car, the dealer has satisfied its obligations. Therefore, if you buy a used car “as is,” your only warranty is that it can pass state inspection.

To minimize your risk when buying a used car:

  1. Know your legal rights as described in this chapter,
  2. Make sure the dealer follows its legal requirements, and
  3. Prior to purchase, have the car inspected by an independent mechanic to ensure it will pass inspection and that the areas of the car not covered by the state inspection law are in good repair.

Remember, if you put down a deposit on a used car you probably have entered into a contract to buy the car. If you decide not to complete the purchase, you may not be able to get back your deposit. However, a dealer must disclose to you in writing its policy on returning deposits and have you sign it before you provide a deposit.[iii] Failure of the dealer to do so can be an Unfair Trade Practice Act violation; for more information, see our guide to the Unfair Trade Practices Act.

[i] Title 10 Maine Revised Statutes, sections 1471-1478. Note that this law only applies to sales by dealers and does not apply to private, non-dealer sales. It also does not apply to sales of motorcycles.

[ii] Dealers are allowed to disclaim warranties on used cars, but manufacturers cannot. Thus, if you purchase a used car that is not yet 4 years old you may still have implied warranty rights against the manufacturer. See title 11 Maine Revised Statutes, section 2-318.

[iii] Title 10 Maine Revised Statutes section 1475(2-A)(H).

Immediate Rejection of a Defective Used Vehicle

Even if the dealer only warrants that your car can pass a state inspection, you still may be able to cancel the sale if the car immediately (within the first day or so) proves seriously defective.[i]

If you discover a defect right after you buy a used car (with or without a warranty) and before any significant mileage then:

  1. You can immediately “reject” the car (i.e., cancel the sale) and demand the return of the purchase price and damages, if any.[ii] You should do this in writing and state your reasons for rejecting the car. Mail this notice (registered mail, return receipt) to the dealer and keep a copy for yourself. You should not use the car once you’ve mailed the notice.
  2. If the defect is minor, then the dealer probably should have the right to repair it.[iii] If the dealer cannot repair it within a reasonable time (e.g., a week or two), then you still have a right to reject the car.
  3. If the defect is substantial, then usually your remedy is replacement of the car or your money back, not repair. You do not have to settle for replacement of the defective part (e.g., a defective transmission).[iv]

The same rejection principles apply if you buy a new or used car and the dealer does not deliver the exact car you purchased. For example, if you ordered a blue sedan for delivery by a certain date, you can reject the vehicle if the dealer misses the delivery date or the sedan is red instead of blue. If that occurs, you should ask for a full refund. Before you try to reject a vehicle you may wish to consult with a lawyer, if possible.

[i] Title 11 Maine Revised Statutes, sections 2-602.

[ii] Pursuant to the U.C.C., not only would you be eligible for the return of the purchase price but also for consequential and incidental damages, if any. Title 11 Maine Revised Statutes, sections 2-715.

[iii] Title 11 Maine Revised Statutes, section 2-508. Be aware that if the defect is substantial but the dealer’s “time of performance” has not expired, then the dealer can still repair the defect. For example, if your contract for a used car requires the car to be delivered by October 15 and you discover a serious defect on October 10, the dealer still has 5 days to “cure” the problem. If the contract does not state a delivery date, most courts assume the “time of performance” date is the date the consumer actually received the vehicle from the dealer.

[iv] Title 11 Maine Revised Statutes, section 2-508.

Your Warranty That Your Vehicle Can Pass State Inspection

Used car dealers must always warranty that a used car can pass inspection, even if they are selling the car “as is.”[i] Dealers must give you this guarantee in writing.[ii] If your car violates this warranty, the dealer must repair it, free of charge, so it can pass state inspection.

It is not enough that an inspection sticker is on the car. Your car must actually meet the state standards. That means that the inspection sticker must have been put on your car within 60 days of the date of purchase.

The following parts of your car (but not the engine![iii]) must be able to pass inspection:[iv]

  1. Body components (including bumpers, fenders, doors, chassis frame);
  2. Brakes (including transmission forward and reverse gears as well as park position);
  3. Glazing (including windshield, side and rear windows);
  4. Exhaust system (including muffler);
  5. Horn;
  6. Lights and directional signals, (includes wiring and switches);
  7. Rearview Mirrors;
  8. Reflectors;
  9. Running gear (e.g., suspension system, air bag);
  10. Steering mechanism;
  11. Safety belts on 1966 and subsequent models;
  12. Tires;
  13. Windshield wipers;
  14. Windshield washer system;
  15. Catalytic converters on 1983 and subsequent models; and
  16. Filler neck restriction on 1983 and subsequent models.

Whether or not your car has an inspection sticker, you should have it inspected thoroughly by an independent inspection station prior to purchase or, if this is not possible, immediately after purchase. If it cannot pass inspection, you can return the car immediately to the used car dealer and require the dealer to repair it free of charge. If the dealer refuses to repair your car free of charge, you may be entitled to all or most of your money back. In any lawsuit in which you prevail, the court can also order the dealer to pay you a civil penalty for not complying with the law and your attorney fee.[v] You should also notify the State Police, as the dealer then risks fines and the loss of a state inspection license.

[i] Title 10 Maine Revised Statutes, section 1474(1)(2).

[ii] Title 10 Maine Revised Statutes, section 1474(3).

[iii] The engine is not an inspection item. However, if the transmission’s forward and reverse gears do not work, the car will fail the brake inspection.

[iv] Title 29-A Maine Revised Statutes, section 1751(2). In order to pass inspection the part must be “in good working order” and not pose a hazard to occupants or the public. See Title 29-A Maine Revised Statutes, section 1756(1).

[v] Even though the basic remedy provided in the Used Car Information Act is repair of any defects, if you have been sold a seriously defective car, then you can argue that the dealer has also violated the Maine Unfair Trade Practices Act (Title 5 Maine Revised Statutes, sections 207, 213) and that you are entitled to the return of your money. For more information, see our guide to the Unfair Trade Practices Act.

Unsafe Motor Vehicles

If the dealer is selling the car for purposes other than transportation – for example, for collection, or to strip for parts – then the state inspection guarantee will not apply. If that is the case, the vehicle must display a large yellow “Unsafe Motor Vehicle” sticker. This sticker will clearly list what parts of the car cannot pass inspection. You will be required to tow an unsafe motor vehicle off the dealer’s lot. The dealer must also have you sign a copy of this disclosure sticker and must then give you a copy of this signed document.[i]

[i] Title 10 Maine Revised Statutes, section 1474(4).

You Have a Right to a Written Disclosure of the Vehicle’s History and Warranties – Window Sticker Requirements

In Maine, a dealer must place a “Buyer’s Guide” on every used vehicle offered for sale. A dealer cannot offer to sell you a used car unless they post the required sticker on the vehicle.[i] The sticker must display the following information:

  1. The car’s make, model, year and its identification number;
  2. The principal manner in which the vehicle was used by the prior owner;
  3. All known mechanical defects, even if the defects have been repaired;
  4. How the dealer acquired the car (e.g., auction, trade-in, repossession);
  5. A statement identifying substantial damage, even if it has been repaired;[ii]
  6. A valid state inspection sticker less than 60 days old (unless the vehicle is labeled “unsafe motor vehicle”);
  7. A statement of any express warranty or that the only warranty offered is the inspection warranty;
  8. The full language of any express warranty offered (if offered);
  9. A statement of any service contract available on the vehicle; and

If the warranty of merchantability and fitness for a particular purpose are being disclaimed, a statement to that they are disclaimed.[iii]

The dealer must give you a completed copy of this window sticker when you purchase the car. Further, any statements or promises written into the window sticker override any contrary statements the dealer may put into the written contract.[iv] Finally, the Secretary of State’s Used Car Sale Rules prohibit the dealer from making any statements, oral or written or taking other actions, which alter or contradict the disclosures made on the window sticker.

[i] Title 10 Maine Revised Statutes, section 1475.

[ii] You should also carefully examine the title. It can reveal whether the car has been damaged or salvaged. This means that buyers should immediately be informed whether the vehicle has ever been salvaged or rebuilt. For more information, see our guide on how to read your title. Dealers must also disclose if the vehicle had been accepted for Lemon Law arbitration and subsequently purchased back by the manufacturer (see Title 10 Maine Revised Statutes, section 1475(4)).

[iii] See Title 10 Maine Revised Statutes, sections 2-314 and 2-315.

[iv] Nor can a dealer make verbal representations about the quality of the car and then, if the car proves defective, point to a “merger” clause in the contract, which states that only the contract’s written terms matter and not any verbal promises or representations. 

You Have a Right to Adequate and Timely Repair

The Used Car Information Act is very clear as to the standards the dealer must meet in repairing your car under either a warranty of inspectability or an additional warranty or guarantee the dealer made to you.[i] A dealer violates the warranty if:

  1. The dealer sells you a car that cannot pass a state inspection;
  2. The dealer fails to repair or replace parts that were guaranteed (under either the warranty of inspectability or the dealer’s own warranty) within 5 calendar days after you have provided it to the dealer, or within 35 days if the necessary parts are not immediately available to the dealer;[ii] or
  3. The dealer fails to provide you with a loaner car at no cost (except for oil and gas) if your car is still not repaired after the above times have expired.

If any of these standards are not met by the dealer, then you may be able to return the car and receive all or most of your money back or obtain damages equal to the car’s lost value.

Remember, if you complained about a particular defect before the warranty expired, a dealer cannot wait for the warranty to expire and then charge you for the repair. By complaining before the warranty runs out, you “freeze” your repair rights as to that defect.

If the dealer fails to perform express or implied warranty obligations, you must give the dealer written notice of this failure before you can file a lawsuit under the Used Car Information Act. This notice must be sent by registered or certified mail.[iii]

[i] See Title 10 Maine Revised Statutes, section 1476.

[ii] The dealer must perform the repairs within 5 calendar days of you delivering the car, or within 35 calendar days if the dealer needs to order the parts. Title 10 Maine Revised Statutes, section 1476.

[iii] See Title 10 Maine Revised Statutes, section 1476(3). In addition to your Used Car Information Act remedies, you may also have the U.C.C. remedy of “revocation” of ownership. See Title 11 Maine Revised Statutes, section 2-608 and our guide to new vehicles.

Transfer of Warranties

Manufacturers sometimes offer quite lengthy express warranties. If you purchase a late model used car, the manufacturer’s express warranty may still apply to you.[i] Also, you may have implied warranty protection from the manufacturer for any serious defects that were present when the car was first sold; for more information, see our warranties guide. While state law allows used car dealers to disclaim implied warranties, manufacturers cannot.[ii]

[i] See title 11 Maine Revised Statutes, section § 2-318. An existing express or implied warranty passes to the buyer of a used car if the buyer is “a person whom the manufacturer, seller or supplier might reasonably have expected to use, consume or be affected by the goods.”

[ii] See title 10 Maine Revised Statutes, section 1473.

Service Contracts

Car dealers will often attempt to sell service contracts to used car buyers. Service contracts are not warranties (which are included in the cost of the item) but, rather, a promise to reimburse you for covered repairs over and above a deductible.

Many service contracts sold by dealers are handled by independent companies, called administrators. These administrators act as claims adjusters, authorizing the payment of claims to any dealers under the contract. Therefore, if you have a dispute over whether a claim should be paid, you should deal with the administrator.

Are service contracts worth the money? Certainly they can bring a measure of peace of mind. But they are often extremely high priced and do not always cover the problem you need repaired. You should carefully balance the monthly or annual cost of the service contract against the anticipated cost of upkeep of the vehicle.

Also keep in mind that many service contracts have escape clauses that state that if the vehicle is already covered under warranty, then the buyer must first seek repair under the warranty (e.g., from the dealer or the manufacturer) rather than repair under the service contract. Thus, if you purchase a used car that is a few years old and which still carries the manufacturer’s warranty, also purchasing a service contract may not be necessary or beneficial.

If the service contract company goes out of business, you may lose the price of the service contract.[i] Please note that the federal Magnusson-Moss Warranty Act prohibits the dealer from disclaiming your implied warranty rights if the dealer sells you a service contract within 90 days of your purchasing the car.[ii]

Even if your express warranty has expired, the dealer has disclaimed your implied warranties, and you did not purchase a Service Contract, there may still be hope. The manufacturer may have issued a Technical Service Bulletin (TSB) that will provide free fixes of defects discovered after the warranty has expired. You can find out if such “secret” warranties exist by checking the following sources:

400 7th St. SW,

Washington, D.C. 20590.

Telephone: 1-888-327-4236

1825 Connecticut Ave, NW, Suite 330,

Washington, DC 20009-5708

Telephone: (202) 328-7700

9412 Big Horn Blvd.,

Elk Grove, CA 95758.

Telephone: 1-800-829-8727

Email: info@alldata.com

[i] If the administrator goes out of business, the dealership may still be obligated to perform under the contract. The reverse also may be true. If the dealer goes out of business, the administrator may be required to fulfill the terms of the contract. Whether you have recourse depends on your contract’s terms. You can also check with the Maine Bureau of Insurance (1-800-300-5000 or 207-624-8457) to see if your service contract qualifies as “insurance.” If so, you may have additional remedies. Another remedy is available where the service contract was sold in conjunction with the sale of the vehicle and where the purchase was financed by a lender related to the seller within the terms of the FTC Holder Rule. In such cases buyers can assert claims arising out of the sale of the service contract against the lender. The buyer can demand that the lender credit his account in the amount of the claim. This remedy is especially useful where the service contractor or seller goes out of business or fails to make a repair covered by the contract.

[ii] Title 15 United States Code, section 2308(b)(2).

Your Legal Remedies

In General

If in the first day or so of ownership you discover a serious defect, you should consider immediately rejecting a used car and demanding back your money. The Used Car Information Act provides customers with additional legal remedies. If you are beyond the immediate rejection stage you should first give the dealer an opportunity to repair any problem that is covered by warranty or causes the vehicle to fail the State’s inspection. Any violation by the dealer of the above duties means the dealer has probably also violated the Maine Unfair Trade Practices Act, which provides consumers with additional legal remedies. If your car could not pass State inspection when it was sold to you, then you are entitled to free repairs. If free repairs are refused, then the Unfair Trade Practices Act can entitle you to a return of your money.

Your first step should be to meet with the dealer and try to resolve your dispute. Show the dealer this summary of the law. Carefully consider any compromise offer. If you cannot reach an agreement and still feel you have been treated unfairly, you can consider going to court. Small Claims Court does not require that you hire an attorney. You can sue in Small Claims Court if you do not seek more than $10,000. If you want to sue for more than $10,000, you should talk to an attorney.

The Used Car Information Act Remedies

The specific legal remedies provided by the Used Car Information Act[i] could be enforced in Small Claims Court, or District or Superior Court.

  1. If the dealer refuses to make express warranty repairs or to repair the car so it can pass inspection (see earlier in this guide), then you can:
    1. Return the car and get all your money back, less the value of any damage caused by your mistreatment of the vehicle; or, if you’ve had the car for 30 days or more, you can return the car and get your money back less the amount of money your car’s fair market value has decreased due to normal use by you; or
    2. Alternatively, you can keep your car and sue for damages equal to the decrease in value of the car caused by the dealer’s failure to meet his warranties (e.g., the cost of repairs).
  2. In addition to any other remedy, if the dealer fails to post the history of the vehicle on the car or otherwise comply with the requirements of the Used Car Information Act, the court may order the dealer to pay you a civil penalty of between $100 and $1,000, plus costs and attorney’s fees,[ii] unless the dealer can show the violation was unintentional. This suit must be filed within 2 years of the date on which the problem arose.

Please note: Before suing for breach of warranty, you must notify the dealer by registered or certified mail to their business address, to notify them that they have failed to perform their warranty obligations. Again, if you win, the court can award you your reasonable attorney fees.

Unfair Trade Practices Act Remedies.

If you are buying the car for personal, family, or household use (not business), then any violation of the duties described above is also an unfair trade practice.[iii] That means you have the right to sue for damages or restitution (your money back) under the Unfair Trade Practices Act as well as the Used Car Information Act. The court can also order the dealer to pay your reasonable attorney fees and the cost of filing the suit. It can also be an Unfair Trade Practice if the dealer makes any significant oral or written (e.g., in an advertisement) misrepresentations. This is true even if the sales contract warns the buyer that the dealer is not responsible for the oral statements of its salesperson and that the written contract terms are final.

[i] See title 10 Maine Revised Statutes, sections 1476-1477.

[ii] Title 10 Maine Revised Statutes, section 1477(3), liquidated damages; title 10 Maine Revised Statutes, section1476(4).

[iii] Title 10 Maine Revised Statutes, section 1477.

Odometer Fraud

It is a crime for anyone to alter the odometer reading with the intent to deceive.[i] If you believe your odometer was tampered with, contact the Bureau of Motor Vehicles, Enforcement Services Division: (207-624-9000 extension 52144). For more information, see our guide on odometer tampering.

[i] See title 29-A Maine Revised Statutes, section 2106(1).

Summary of Your Used Vehicle Rights

No more than 60 days prior to sale to a consumer, the used car dealer must have had a new inspection sticker put on the car.

Any used car sold must be able to pass inspection. The only exception to this rule is a car being sold for parts or reconstruction that has been labeled an “UNSAFE MOTOR VEHICLE.” These cars must be towed from the dealer’s lot. If your used car cannot pass inspection, then the dealer must repair it for you at no charge or you may be able to demand your money back.

On the other hand, if your car can pass inspection but the motor (which is not a state inspection item) fails, you may not be entitled to return it. Unless the dealer made misrepresentations about the car’s quality (e.g., “the car’s engine is in excellent shape”), no law has been broken, assuming that the dealer has properly disclaimed the your right to implied warranty protection. However, if you discover a serious defect immediately after purchase (e.g., within a day or so and before you’ve put on significant mileage), you may be able to immediately reject the car, cancel the contract and recover your purchase price.

Each car must have a Used Vehicle Buyer’s Guide Window Sticker on its window detailing background information about the car (e.g., collision damage) and alerting you to the fact that you can ask for the name and address of the past owner. A dealer disclaimer of implied warranty rights, if any, must also appear on this sticker. These used car rights do not apply to private sales between individuals.

If you purchase a car for personal use and not for business use, then a violation of any of the rights described above is also a violation of the Maine Unfair Trade Practices Act.[i] In general, you are protected from unfair and deceptive business practices by car dealers under the Unfair Trade Practices Act.

The dealer must let you review the title of the vehicle. This is the certificate that shows ownership of the vehicle. The Bureau of Motor Vehicles recommends that you should look for the following on the title:

  1. check the mileage and any notations regarding salvage or repairs, etc.;
  2. look for liens and make sure any liens have been released;[ii] and
  3. check whether the vehicle is a “salvage” or “rebuilt” vehicle.[iii]

[i] 10 M.R.S.A. § 1477.

[ii] A lien indicates that a bank or other person may have loaned money to the prior owner, usually to purchase the car, and this gives the bank a right to the car if the loan is not repaid. The lien will remain on the vehicle title until the money is repaid. Once a lien is paid it will be released and the bank will no longer have any rights in the car.

[iii] If the title states that the vehicle is a “salvage” or “rebuilt” vehicle that means it has been declared a total loss by an insurance company and has been repaired. If that is the case you might have difficulty insuring your vehicle or obtaining financing. A salvage vehicle may have little resale value and may be unsafe.

Emission Testing and Warranties

Manufacturers are required by federal law to provide broad emission warranty coverage for vehicles that are less than 2 years old and have been operated for less than 24,000 miles, and warranty coverage for specific vehicle parts for up to 8 years.[i] Manufacturers must offer a defect warranty, which covers emission control related parts which become defective, and a performance warranty, which covers repairs which are necessary because your vehicle failed the emission test. If you have questions or concerns about the federal warranties, you can contact the EPA’s compliance division at complianceinfo@epa.gov.

“Spot Delivery” Sales

A “spot delivery” sale, sometimes called “yo-yo financing,” is when the dealer allows you to take the vehicle home, even though the final financing has not been arranged. This allows the dealer to “close” the sale even though the dealer is not certain it can obtain financing at the agreed upon rate.

Maine law[i] imposes specific requirements on a dealer who has made a “spot” delivery and who then later informs the consumer that the agreed upon financing could not be obtained. If that occurs, the dealer must do the following:

  1. Reimburse the entire vehicle purchase price or, if a leased vehicle, the lease payments made to date, including any paid finance charges on the purchased or leased vehicle;
  2. Reimburse all charges pertinent to the contract, including, but not limited to, sales tax, license and registration fees and similar government charges;
  3. Return any trade-in vehicle or, if the vehicle is not available, reimburse the trade-in value of the vehicle established in the contract.

Further, if the dealer did not inform the consumer of these reimbursement rights, the dealer is prohibited from canceling the sale.

[i] Title 10 Maine Revised Statutes, section 1194. Violation of this statute is evidence of an unfair trade practice, see Title 5, section 217.

Interest Rate Kickbacks and Dealer Deception

Unknown to most consumers, when a dealer arranges new or used car financing for a consumer with a bank or other credit provider, the interest rate charged the consumer will sometimes include a “kickback” to the dealer of several percentage points. For example, a dealer might arrange financing for a customer with a local bank at 10% when in fact if the customer had approached the bank directly the bank would have provided financing at 7%. The bank and dealer then share the proceeds from the additional 3% interest.

You should always check with a bank directly to determine what interest rates it is offering on used (or new) vehicle purchases before going to the dealer or signing a purchase contract. But, if you do not, you can ask the dealer during the negotiation what rate the bank is offering and whether the dealer is receiving any kickback on the rate. It may be an unfair trade practice, and a violation of the Maine Unfair Trade Practice Act, for a dealer to misrepresent the interest rate they are offering to you as the bank’s “buy rate” if the dealer is receiving a kickback.

Document Preparation Fees

Document Preparation Fees are often charged by dealers and can amount to several hundred dollars. These extra charges are not required fees and consumers can try bargaining to reduce or eliminate them. If a dealer wants to charge a document preparation fee it must first be posted on any new or used vehicle being sold for sale.[1] Further, if a dealer has advertised a car at a specific price that price must include any document preparation fees or other extra charges. In other words, such extra charges cannot be added to the advertised price.

[1] See Title 29-A Maine Revised Statutes, section 953-A.