Most buyers of new cars are probably familiar with lemon laws, which allow consumers a refund or replacement when their car turns out to be defective. These laws generally cover leased cars as well as purchased ones, and they have worked well as a consumer protection tool. Unfortunately, no such laws exist for used cars, and buyers should be careful when purchasing them.

Many car dealers offer certified used cars that come with some sort of warranty, but most independent used car dealers do not. In most states, the law permits used car dealers to sell cars as is, and in that case, anything that goes wrong, even if it happens five minutes after purchase, becomes the buyers problem. Dealers selling cars on an as is basis often arent even required to disclose any problems a vehicle might have to potential buyers. Most independent car dealers sell older, less expensive cars than those sold at major auto dealerships. A lot of the profits that independent used car dealers make come from financing, particularly from financing those with bad or poor credit. Those with problem credit often find that such dealerships, which self-finance, are their only chance at obtaining a car loan. These loans, with their resulting high payments, often leave buyers without any extra cash to pay for repairs of undisclosed problems. Legislators in several states are considering laws that will require used car dealers to have their cars inspected by certified mechanics prior to their being offered for sale. This will help, in time, but what can a potential buyer do now?