Magnuson-Moss Warranty Act on Used Cars

The Magnuson-Moss Warranty Act is the federal law that sets rules for written warranties on consumer products, including cars, and on a used car it matters most when a dealer gives a written warranty or sells a service contract, because those steps can keep implied warranties in place. The definitions live at 15 U.S.C. 2301, disclosure rules at 15 U.S.C. 2302, and the implied-warranty tie-in at 15 U.S.C. 2308. Remedies are at 15 U.S.C. 2310.

What the Act covers on a used car

Magnuson-Moss applies when a supplier gives a written warranty on a consumer product. A short dealer warranty on a used car can qualify. A pure as-is sale with no written warranty and no service contract usually leaves you outside the written-warranty parts of the Act, though state implied-warranty rules may still apply. Our as-is guide covers that path.

Implied warranties and service contracts

Under 15 U.S.C. 2308, a supplier that gives a written warranty, or enters a service contract with the consumer within 90 days of the sale, cannot disclaim implied warranties. It may limit their duration to the length of a written warranty of reasonable duration. That is why buying a service contract at the desk can change the as-is story. Our warranty of merchantability guide explains the implied promise itself.

Full versus limited warranties

If a written warranty meets the federal "full" standard under 15 U.S.C. 2304, the warrantor must remedy defects within a reasonable time without charge and may have to refund or replace after a reasonable number of attempts. Most used-car dealer warranties are limited; read the label and the exclusions.

Buyers Guide still rules the lot

The FTC Used Car Rule requires a Buyers Guide on used cars offered by dealers, as 16 CFR 455.2 sets out. The guide must say whether the sale is as is or with a warranty. Our Buyers Guide explainer and window sticker guide show what to photograph before you sign.

Making a claim

Write the dealer soon after the defect appears, attach a shop report and ask for a repair under the warranty or implied warranty. Federal law at 15 U.S.C. 2310 allows suits in some warranty cases, and fee-shifting can apply. A local consumer lawyer can tell you how your state overlays lemon or UCC rules.

Questions to ask the dealer

• Is there a written warranty, and can I read it before I sign?
• Is the sale as is on the Buyers Guide?
• If I buy a service contract, does that keep implied warranties?
• Who pays for diagnosis if a covered part fails?

Reading the history report

Read the title section first: any salvage, rebuilt, flood or lemon brand changes the value more than anything else. Then line up the odometer readings by date and look for gaps or drops. Check the number of owners and the states where the car was registered. An approved NMVTIS check adds insurer and salvage-yard records. Our odometer discrepancy guide explains odd mileage entries.

Paperwork to keep

Keep the buyer's order, the retail installment contract, the odometer statement, any Buyers Guide, warranty or service-contract papers and every payoff or lien letter in one folder. Photograph the window sticker and the dash mileage on the day you sign. If a dispute comes up later, dated paperwork is what a lender, an insurer, a dealer licensing agency or a court will ask for first.

Compare the financing

Get a preapproval from a bank or credit union before you visit, so you can compare it with the dealer offer on the same term. Compare the APR, the amount financed and the total interest, not just the monthly payment. The CFPB auto loan tools walk through what to read on an offer. Decide on add-ons such as GAP and service contracts on their own merits, and get the price of each one in writing.

What the report costs

As of early November 2026 a CARFAX bought direct usually costs around $44.99, and AutoCheck sits a little lower. We are a licensed CARFAX and AutoCheck reseller, not affiliated with CARFAX, AutoCheck or Experian. Our guest price has been about $5.50 a report, about $4.50 for members, and about $6.75 for a CARFAX and AutoCheck bundle. Confirm the price at checkout, since it can change.

Sources

• 15 U.S.C. 2301, Cornell LII
• 15 U.S.C. 2308, Cornell LII
• 15 U.S.C. 2310, Cornell LII
• 16 CFR 455.2, Cornell LII
• UCC 2-314, Cornell LII
• FTC Dealer's Guide to the Used Car Rule