Yes, a dealer can legally sell a car that needs mechanical repairs, but they must disclose the issues clearly and transparently. The key factor is how the vehicle is advertised and what is stated on the Buyer's Guide (often called the "window sticker"). If a car is sold "as-is," the dealer is not responsible for repairs after the sale. However, selling a car with known, significant safety defects without disclosure could lead to legal liability.
The most critical document is the Buyer's Guide, required by the Federal Trade Commission's Used Car Rule. It must be displayed on the vehicle's window and will have two checkboxes: "As Is - No Dealer Warranty" or "Warranty." If "As Is" is checked, you are buying the car in its present condition, flaws and all. Dealers are generally not required by federal law to perform repairs on used cars, but several states have stricter "lemon laws" for used vehicles or require minimum warranties.
Your best protection is a pre-purchase inspection by an independent mechanic. This can reveal issues the dealer may not have disclosed or even known about. Always get any promises of repair in writing on the sales contract. Verbally agreed-upon fixes are often unenforceable.
| Common Repair Scenarios & Buyer Protections | Dealer's Obligation | Buyer's Risk & Recommended Action |
|---|
| Car sold "As Is" with no disclosed issues | Must accurately complete the Buyer's Guide. Cannot commit fraud by hiding known, major defects. | High risk. Assume all costs for repairs. Essential: Get an independent inspection. |
| Car sold "As Is" with disclosed issues | Must list known defects on the Buyer's Guide or a separate disclosure document. | Medium risk. You are aware of the problems and price should reflect them. Negotiate based on repair estimates. |
| Car sold with an implied or explicit warranty | Legally obligated to repair covered components for the warranty period. | Lower risk. Understand the warranty's terms, duration, and deductible. Keep all paperwork. |
| Undisclosed safety defects (e.g., bad brakes, airbag light) | Potentially liable for fraud or violating consumer protection laws, even in "as-is" sales. | Do not buy. Report the dealer to your state's attorney general or consumer protection agency. |
