Highly recommend that all consumers purchase used vehicles from licensed dealers.
It is key that a consumer test drive any potential purchase
Best that a consumer exercise the right to have the vehicle checked by a mechanic before the purchase.
As-Is means the dealer is selling without a warranty, and if there is any mechanical breakdown after purchase repairs are the responsibility of the buyer.
Unless a consumer can prove a subsequent mechanical failure was due to a known fault purposely concealed, or repaired in a temporary manner that is deceptive in its purpose, the selling dealer is not likely to be held liable.
Dealer's failure to disclose material facts can void an As-Is sale Comer v Person Auto Sales Inc.368 F Supp.2d 476 (M.D.N.C. 2005)
It is significant that a warranty is included in the purchase price. A warranty is provided directly by the dealer
Where most confusion sets in is when a service contract is provided by a third party provider, at an additional cost to the buyer.
Dealers have a duty to disclose:
Any material information a consumer would want to know that would affect the decision to purchase.
If a dealer has knowledge of any prior damage to the vehicle the dealer has a duty to inspect and disclose the findings of that inspection.
By statute (NCGS § 20-71.4.):
a dealer must disclose any fire, theft, flood, or salvage history; and
if the vehicle is five model years old or newer the dealer must disclose any body damage that exceeded 25% of the values of the vehicle at the time of the repair.
A dealer must disclose the odometer reading:
At the time of sale, and
Must further state if it is actual mileage,
In excess of mechanical limitations, or
If the mileage disclosed is not the actual mileage.
Debits and credits for equity in trade or trade-in payoff
Prices for ancillary products (such as Service contracts)
Associated sales tax
A dealer is required to have possession of the vehicle title before offering for retail sale.
The physical possession of the last issued title is the only way a dealer can verify the existence of any "Brands", odometer discrepancies, or to confirm no outstanding liens against the previous owner