What Does "As Is" Mean When You Buy a Used Car?
Short answer
“As is” means the dealer will not pay for any problems or repairs after the sale, so you take on the risk of anything that goes wrong. In an as-is sale, the implied warranties that state law would otherwise give you are removed. You will see it as a checked box on the Buyers Guide that federal rules require dealers to post on used cars. Some states limit or ban as-is sales, so check with your state attorney general.
The short version
When a used car is sold “as is,” the dealer is telling you it will not cover repairs after you drive away. The FTC puts it plainly: the dealer “won’t pay for any problems or needed repairs,” and “you’re assuming the risk of anything that goes wrong after the sale.”
That matters more than it sounds. Without a written warranty, a used car from a dealer still comes with implied warranties under state law. An as-is sale is the one case where those are removed, according to the FTC.
The good news is that you never have to guess. Federal rules make dealers say which kind of sale it is, on paper, on the car.
Where you will see it: the Buyers Guide
The FTC’s Used Car Rule, in force since 1985, requires dealers to display a window sticker called the Buyers Guide on the used cars they offer for sale. The dealer must post it before showing the car for sale, keep both sides readable, and put it back after a test drive. You also get the original or a copy at the sale.
Who counts as a dealer is set out in 16 CFR 455.1. The rule covers a person or business that has sold or offered five or more used vehicles in the previous 12 months. It does not cover a bank or financial institution, a business selling a car to its own employee, or a leasing company selling a leased car to the person who leased it.
A few more limits from the FTC:
- Motorcycles are not covered, and the FTC says most recreational vehicles do not need a Guide either.
- Light-duty vans and trucks, demonstrators, and program cars are covered.
- Maine and Wisconsin use their own version of the Guide instead of the federal one.
- If the sale is in Spanish, the dealer must use the Spanish Buyers Guide.
- The FTC says you are entitled to a Buyers Guide if you buy a used car online, too.
The boxes on the Guide, and what each one means for you
The Guide has a warranty section with one of these marked.
| Box on the Buyers Guide | What it means | What you can expect after the sale |
|---|---|---|
| As Is - No Dealer Warranty | No written warranty and no implied warranties | The dealer will not pay for problems or repairs |
| Implied Warranties Only | No written promises, but state implied warranties still apply | You may have some rights to have serious problems that were not apparent at the sale taken care of |
| Warranty (Full or Limited) | The dealer gives a written warranty | Covered systems, how long, and what percent of parts and labor the dealer pays are listed on the Guide |
Two details from the rule make that third row easier to check. The dealer has to name each covered system, such as engine or transmission, and cannot use a vague phrase like “power train.” The Guide also has to state the share of repair costs the dealer pays, written like “The dealer will pay 100 percent of the labor and 100 percent of the parts.”
Most used car warranties are limited, the FTC says, and coverage varies.
What you give up with “as is”
Implied warranties are unwritten promises that come with a sale under state law. The FTC describes two common ones:
- Merchantability. The car will do what a car is supposed to do. It covers basic functions, not everything that could break, and you would need to show the problem existed at the time of sale.
- Fitness for a particular purpose. If the dealer told you a car was right for a specific job, such as towing a trailer, the car should be able to do that job.
The FTC says implied warranty coverage can last as long as four years, though the length varies by state. An as-is sale removes that protection. If the “As Is” box is checked, a problem that shows up a week later is generally yours to pay for.
Your state may not allow it
As-is sales are not legal everywhere. The federal rule says that if your state limits or prohibits as-is sales of vehicles, state law wins, and the dealer must use the “Implied Warranties Only” version of the Guide instead. That version reads:
The dealer doesn’t make any promises to fix things that need repair when you buy the vehicle or afterward. But implied warranties under your state’s laws may give you some rights to have the dealer take care of serious problems that were not apparent when you bought the vehicle.
The FTC also notes that some states allow as-is sales only if the dealer uses specific language or a separate document. Rules vary by state. Your state attorney general’s office can tell you what applies where you are buying.
Get every promise onto the Guide
This is the part that protects you most, and it costs nothing.
Under 16 CFR 455.3, the final version of the Buyers Guide is part of your contract of sale, and it overrides anything in the contract that disagrees with it. Your contract must say so in these words: “The information you see on the window form for this vehicle is part of this contract. Information on the window form overrides any contrary provisions in the contract of sale.”
The FTC gives an example. If the Buyers Guide says the car comes with a warranty and the contract says it is sold as is, the dealer must give you the warranty described in the Guide.
It works the other way, too. If a salesperson says “we’ll take care of that,” but the Guide still says as is, you may have a hard time getting the dealer to follow through. The rule says that when a dealer and buyer negotiate a change in warranty coverage, the change must be marked on the form. So ask for it to be written there.
The service contract exception
A service contract, sometimes sold as an “extended warranty,” costs extra and is not a warranty, the FTC says. But it can change an as-is sale.
If you buy a service contract from the dealer within 90 days of buying a used car, the FTC says the dealer cannot remove implied warranties on the systems that contract covers. Its example: buy a car as is, then buy a dealer service contract that covers the engine, and you automatically get implied warranties on the engine.
That is not a reason to buy one. Prices and coverage vary widely, and the FTC suggests checking whether a contract duplicates coverage you already have, what the deductible is, and whether you can cancel.
Worked example
This is an illustration, not a real person or sale. Thaddeus is looking at a used hatchback at a dealer. The Buyers Guide on the mirror has the “As Is - No Dealer Warranty” box checked. On the test drive, the air conditioning blows warm, and the salesperson says the shop will recharge it before he picks the car up.
Here is how Thaddeus handles it:
- He reads the Guide and confirms the as-is box is checked.
- He asks the dealer to write the air conditioning repair onto the Buyers Guide. The FTC says verbal promises like repairs should be written there when the as-is box is checked.
- He asks to take the car to an independent mechanic before buying. The dealer says insurance rules keep the car on the lot, so he books a mobile inspection, one of the options the FTC suggests.
- The mechanic’s written report lists a worn part and a repair estimate, with the car’s make, model, and VIN on it. Thaddeus uses that estimate to negotiate the price.
- At signing, he checks that the copy of the Guide he gets matches the final deal.
If the dealer had refused to write down the promise or allow an inspection, the FTC’s advice is to consider going to another dealer.
Checklist before you sign an as-is deal
- [ ] Find the Buyers Guide and note which warranty box is checked.
- [ ] Check that the make, model, year, and VIN on the Guide match the car.
- [ ] Get any repair promise or warranty change written on the Guide itself.
- [ ] Ask for the dealer’s return policy in writing. Federal law does not give you a three-day cancel right.
- [ ] Get an independent mechanical inspection with a written report.
- [ ] Get a vehicle history report. The FTC says it may list accidents and flood damage but typically not mechanical problems, so it does not replace the inspection.
- [ ] Ask for out-the-door pricing in writing and the price of each add-on.
- [ ] Keep your copy of the Buyers Guide after the sale.
If something goes wrong after the sale
Start with the paperwork. If a written warranty or service contract covers the problem, follow its instructions to get service. If the Guide says as is, the FTC is clear that the dealer will not pay for problems or repairs.
If you hit a dispute you cannot settle with the dealer, the FTC lists these options:
- Contact your state attorney general’s office.
- Use a dispute resolution organization. Some warranties require this before you can sue.
- File in small claims court. The court clerk can tell you how and what your state’s dollar limit is.
- Ask a lawyer whether the federal Magnuson-Moss Warranty Act applies. It lets you sue over express warranties, implied warranties, or service contracts.
Related reading
Before you shop, price the whole monthly cost with the true cost of your first car. If you plan to finance, check your free credit reports first so the loan quote has no surprises.
Common questions
Can I return an as-is used car within three days?
Not under federal law. The FTC says federal law does not require dealers to give you three days to cancel the deal and return the car. Some states require a right to cancel, and some dealers offer a return policy on their own. Ask for the dealer’s policy in writing and check your state attorney general’s rules.
The salesperson promised to fix something. Does that count?
Spoken promises are hard to enforce, and the Buyers Guide itself says so. If the dealer agrees to fix something or changes the warranty, the change must be marked on the Buyers Guide. The final version of the Guide is part of your sales contract and overrides anything in the contract that disagrees with it.
Does a private seller have to give me a Buyers Guide?
The federal rule covers dealers. Its definition is a person or business that has sold or offered five or more used vehicles in the previous 12 months, so a person selling their own car once is outside it. Your state may have its own rules for private sales.
Is a certified pre-owned car ever sold as is?
Check the Buyers Guide on that specific car, since it must show whether the car comes with a warranty or is sold as is. The FTC still recommends an independent mechanical inspection even if a car is “certified” and comes with a warranty or service contract.
Where do I complain if a dealer did not post a Buyers Guide?
Your state attorney general’s office is a good first call, and the FTC takes complaints at ftc.gov. The FTC says many states have similar laws, and some state officials can enforce the Buyers Guide requirement.