A recent article from Virginia Auto Dealer Magazine, “About Those Used Vehicles…”, by Barrie Charapp Beaty, offers an important warning: what may seem like routine shortcuts in used vehicle sales can quickly become legal trouble. At Charapp & Weiss, we’ve long counseled dealers that proper inspections, clear disclosures, and legally compliant warranty practices are non-negotiable in today’s regulatory climate.
The Federal Trade Commission’s $1 million settlement with Vroom earlier this year illustrates exactly what can go wrong—and how costly the consequences can be.
What the Vroom Case Taught the Industry
1. Inspections Must Be More Than a Checklist
Dealers should never rely solely on vehicle history reports. These reports can miss flood damage, structural issues, or prior accidents. A hands-on inspection by trained personnel is essential, and documentation of the results should be kept with the vehicle file.
2. Buyers Guides Must Be Timely and Complete
The FTC’s action noted that Vroom provided the Buyers Guide too late and omitted key details, such as specific warranty coverage. Federal law requires this form be available to customers early in the process—not just at closing—and that it clearly outlines warranty scope, duration, and limitations.
3. Warranty Terms Must Be Clearly Disclosed
Even when a vehicle is sold with a warranty, the FTC found that Vroom didn’t provide the warranty terms up front. This violates not only the Used Car Rule but also the federal Magnuson-Moss Warranty Act. Customers must receive full warranty details before signing any contract.
Charapp & Weiss: Helping Dealers Reduce Risk
These are not new issues—but enforcement is intensifying. At Charapp & Weiss, we help dealers put the right policies in place to avoid being the next cautionary tale. That includes:
- Implementing documented inspection protocols
- Ensuring compliant use of the Buyers Guide
- Providing clear, accessible warranty documents
- Avoiding misleading “certified” vehicle claims
Taking these steps can significantly reduce the risk of regulatory investigations and litigation.
Why This Matters
Used vehicle practices often evolve under sales pressure—moving inventory fast, closing deals quickly. But cutting corners on inspections or disclosures doesn’t just invite consumer complaints; it risks legal action from state attorneys general, the FTC, or plaintiffs’ lawyers. That’s why the lessons in “About Those Used Vehicles…” are so timely and so critical.
Final Word
If your dealership hasn’t reviewed its used vehicle processes lately, now is the time. The Vroom case is a clear signal that regulators are watching—and that noncompliance can be costly.
We encourage you to read Barrie Charapp Beaty’s full article in Virginia Auto Dealer Magazine, “About Those Used Vehicles…”, for more insight.
Need help reviewing your used vehicle practices or training your staff? Charapp & Weiss is here to help.