What does the Used Car Rule prohibit?

The Used Car Rule is designed to protect consumers by ensuring that they receive accurate and honest information when purchasing a used vehicle. It prohibits both unjustifiable remarks about the condition of the vehicle and misleading claims regarding warranties. This means that any statement a dealer makes about a car must be truthful and backed by evidence, avoiding any deceptive practices that could mislead buyers about the car's history or current state.

For example, if a dealer makes an unsupported claim that a vehicle is in "excellent condition" without any accompanying facts to substantiate that statement, they would be violating the Used Car Rule. Similarly, if a dealer advertises a vehicle as having a warranty when, in fact, there is no valid warranty associated with that vehicle, this also represents a violation.

The rule is particularly beneficial for independent dealers, as they are held to the same standards to ensure fair practices in the marketplace. Thus, the correct interpretation encompasses both aspects of the rule, emphasizing the importance of transparency and honesty in vehicle sales.