What does "as-is" really mean on a used car? Can a seller lie to your face? And what can a buyer do when a car that "runs great" breaks down on the drive home? Asked how protected used car buyers are on a scale of one to ten, Steve Lehto has a one-word answer: "Zero." That is why he tells buyers to practice preventive medicine.
In this TalksOnLaw interview, Joel Cohen sits down with Steve Lehto, a Michigan attorney who has spent his career representing consumers in lemon law and car fraud cases, to explain the law of used car sales and the exceptions that can still rescue a buyer. For new vehicles, see Lehto's companion interview, Dud Cars and Lemon Laws.
What "As-Is" Means
Under the Uniform Commercial Code, a merchant seller ordinarily gives an implied warranty of merchantability, a promise that the goods will do their basic job. A refrigerator must keep food cold, and a car must provide reasonably safe, reliable transportation. An "as-is" sale disclaims that warranty. In Lehto's words, the buyer gets a "3,000-pound paperweight." If it catches fire the first time you turn the key, the ashes are yours. Private sellers are not merchants, so a car bought from an individual is almost always as-is, which makes an independent inspection essential.
Puffery, Promises, and the Paperwork
Statements such as "it's a great car" or "it runs well on the highway" are sales puffery: subjective opinions that are not enforceable. Objectively measurable statements are different. Calling a car a 1965 Mustang when it is a 1966 can be actionable. The written purchase agreement usually controls, however. Many contracts state that the buyer is not relying on the salesperson's statements, merge all prior talk into the document, and bury terms such as arbitration clauses on the back. Lehto's advice is to read every page before signing, even at the end of a long day at the dealership.
Fraud: The Great Exception
An as-is disclaimer eliminates the implied warranty, but it does not license fraud. Lehto won a jury trial for a client told his car had one owner when the title history showed seven. "Seven is not one." The salesman admitted in court that he said it all the time. Proving what was said is often the hard part, which is why Lehto says never to shop alone. A companion tends to tone down the sales pitch and can serve as a witness.
Protections You Cannot Disclaim
Some protections survive an as-is sale. A seller who sells a stolen car breaches the warranty of title. Odometer tampering violates federal and state law. The seller certifies the mileage in writing, and "we sold it as-is" is no defense. A dealer may have to sue its own supplier up the chain, but the buyer can sue the dealer. A used car still under the manufacturer's warranty also carries that warranty, so if the manufacturer cannot fix it after a reasonable number of attempts, the buyer may have a claim under the federal Magnuson-Moss Warranty Act, subject to defenses based on a prior owner's abuse or neglect.
Curbstoning and Title Skipping
"Curbstoners" are unlicensed dealers posing as private sellers. They flip cars from the curb in front of a house, or park a dealer's inventory on a salesman's street with a for-sale sign, and send the buyer to "a friend" to do the paperwork. The buyer thinks they are dealing with a long-time owner and loses the protections that come with a dealer sale. Many also "skip" titles, never putting their own name on them. Lehto's advice: make sure the title is in the seller's name, and search the seller's phone number to see whether the same person is selling fifteen cars at once.
Buying Online, Sight Unseen
The internet widens the search but raises the risk. Buyers who find a dream car four states away and buy it from photos can end up with a different car entirely, even after forty pictures on eBay. Fraud may be clear, but suing a seller several states away can cost more than the car. Platform buyer-protection programs function like insurance and have their own exclusions. Lehto's rule: have the car inspected, especially from a distance.
Certified Pre-Owned and Service Contracts
"Certified pre-owned" is a marketing term. Legally, a car is either new or used, and a CPO car is used. It typically comes with some added warranty coverage, but it generally does not qualify under new-car lemon laws, and dealership technicians have told Lehto that multi-point inspections are sometimes never performed. Extended service contracts from the manufacturer can be worthwhile. Third-party contracts often cover only narrow categories, such as the "internally lubricated parts" of the engine and transmission, and deserve close reading.
Hidden Histories and Concealed Defects
Title history reports from a VIN reveal former rental and fleet vehicles, salvage titles, and prior accidents. A dealer's refusal to provide one is a warning sign. Lehto describes a dealer that bought former rentals by the truckload and sold them as one-owner cars, an engine packed with heavy gear lube to hide a knocking rod, and a car made of two wrecks welded together at the firewall that eventually split in half. Deliberate concealment is fraud, and an as-is clause is no defense.
Used Car Lemon Laws and Lehto's Three Rules
A few states have enacted limited used car protections, and some require that a car sold by a dealer be able to pass a basic safety inspection. In many states, though, an as-is buyer has little recourse for ordinary defects. Lehto's three rules: never shop alone, have the car inspected by an independent mechanic (and walk away from any seller who refuses), and buy a title history before you buy the car.
What to Know Now
Lehto's core advice has not changed, and the tools to follow it have improved. Vehicle history reports are cheaper and more complete, the federal NMVTIS title database and free recall lookups by VIN let buyers check for salvage brands and open safety recalls, and online retailers now let buyers return cars within a set period. Dealers must still post the FTC's Buyers Guide, revised and updated in recent years, which tells shoppers whether a car is sold as-is or with a warranty and overrides contrary terms in the contract. Several states, including Massachusetts, Minnesota, and New York, require dealers to provide limited warranties on many used cars. Federal law also bars a dealer that gives a written warranty, or enters into a service contract with the buyer at or shortly after the sale, from disclaiming implied warranties.
The risks have evolved as well. Online sales have grown, and some online dealers have faced state enforcement over delayed titles and registrations. The FTC adopted a rule in 2023 aimed at deceptive dealer pricing and add-on fees, but a federal appeals court vacated it on procedural grounds in 2025. The agency continues to pursue deceptive practices case by case, and states are adopting their own rules. The FTC has also acted against dealers that advertised "certified" or "inspected" cars with unrepaired safety recalls, which supports Lehto's skepticism of CPO labels. California's supreme court has held that a used car sold with a remaining factory warranty is generally not a "new" vehicle under that state's lemon law. Industry groups argue that more mandates would raise prices on affordable cars, while consumer advocates press for stronger used car warranty laws. In the meantime, Lehto's three rules remain the best protection.
