Selling Your Used Car?? It’s best to sell it AS-IS With NO Warranty
No matter how good of condition you think your used car is in. A buyer might find something to quibble about and want their money back.
This private party offered a 1 owner 1991 Toyota MR2 for sale. Seller stated in his advertisement for the car it was in excellent condition. I’m inclined to believe this by looking at the photos. But this car has a lot of miles on it, and according to a history report has been registered in several states. Two of these states were Indiana and Ohio. Seller also mentioned the car has studded snow tires mounted. Seller also said it was used as a winter car in a forum topic, but that was not disclosed in the listing description, that i could see. Unless it was in the listings Q&A hidden from public view.
No matter how nice that little MR2 looked on the outside, I would suspect undercarriage rust and corrosion. If you didn’t know already, northern states in what i prefer to call “the rust belt” are prone to rust. In order to help melt snow and ice they use rock salt and sodium chloride on the roads. This can do a serious number on a cars undercarriage in a short time. Plus a small car like a MR2 sits so low in the road it stands to get more damage. By 1991 that sheet metal the unibody is made of was pretty thin. It could possibly have sustained major damage without it’s owner knowing.
“I listed a 1991 MR2 recently that I believed was in excellent condition and stated so in the title of the sale. I needed to get rid of this car immediately before spending additional funds on retitling, licensing and storing the car in NC, and put a $500 minimum on this so the price would not hold up the sale. I listed what damage I knew, short of forgetting a $10 side mirror, and got 47 bids on the vehicle with 13 interested parties, with the winning bidder snatching it up in the last minute. This bidder did not ask for additional pictures or information while others did, and I provided them all the information they asked for. I am not interested in relisting the vehicle, it was very time consuming, and I have no where to store the vehicle now. The buyer came from out of state to pick up the car from the storage unit , but we had to sign the title before the notary was unavailable. We did so, he paid cash for the vehicle, and my husband took him to the storage unit. It had been stated it was a winter car for 10 years, had snow tires on it, and the buyer changed out the provided tires and rims before leaving the storage area. The buyer drove this car to a nearby friend’s house for a visit, then back home to Georgia from NC. In short, the buyer is unhappy with the car although he has a signed Ohio (my old state) title and drove it out of state. He sent me an email first through eBay then directly wanting his money back, threatening me with a small claims suit for damages as the car was not as described. He had a personal inspection done on the vehicle, and discovered a layer of rust on the bottom of the car, along with an oil valve cover leak that I never knew about. For a 23 year old winter vehicle as was stated in the questions and answers, I am satisfied he got the deal he was looking for. I had just spent $900 on a total brake job in February 2014, including rotors, and never once did my trusted mechanic state anything about excessive rust, nor was any oil leaking on the ground. What recourse do I have in this matter, short of waiting for him to drag me to court, and hiring an attorney for representation? This is the first time I have sold a vehicle on eBay, and I believe I did all the proper things.”
Personally speaking from experience gained in the used car business. The buyer should have inspected the car or had it inspected by an inspection company. And the seller should have put the verbiage on their listing page “This car sold AS-IS with NO-Warranty Implied” possibly going one step further to say. “If it breaks in half – you own both halves” It’s just that simple.
If you want to avoid a possible confrontation about a vehicles condition, be sure to ADD the verbiage “AS-IS NO-WARRANTY” to your cars advertisement for sale. Even if your car has it’s balance of available Factory Warranty Remaining. You should still state you are not giving any warranty with it. Cover Your ASS!
Here is a short audio snippet from Doc explaining why AS-IS Sale is best.
Also i suggest using a state approved Bill Of Sale. If that bill of sale does not contain the terms of sale, be sure to add the above verbiage to it. Call your or search your local motor vehicle bureau for a bill of sale you can print out.