As-Is Sales Explained for Dealers

What as is means

An as-is sale means the dealer gives no warranty on the vehicle, and the buyer takes the car in its current condition. If something breaks after the sale, the buyer pays for the repair. Most independent dealers sell much of their older inventory this way, and for many price points it is the only way the numbers work.

That sentence is accurate but incomplete. As is is a legal status with limits, and a dealer who treats it as a blanket shield can still get in trouble. This article is general information, not legal advice, so confirm the rules for your state.

What as is does not cover

As is disclaims warranties about the condition of the car. It does not give you permission to misrepresent the car. The usual limits are the same everywhere.

• Fraud: lying about accident history, mileage, flood damage or title status is not protected
• Misrepresentation: telling a buyer a car has no problems and then claiming as is afterward
• Title and ownership: you still have to deliver a title you are entitled to transfer
• Required disclosures: odometer, brands and other required notices still apply
• Written promises: if you put a promise in writing, you may be bound by it even on an as-is car

The Buyers Guide connection

The federal Buyers Guide is where as-is is declared on the vehicle. You check the As Is box, and the guide becomes part of the contract. The buyer sees that no dealer warranty is given, and they are urged to get an inspection before buying.

The as-is language on the guide, in the Buyer's Order and on any separate As Is notice should all say the same thing. If they disagree, expect the buyer's version of events to win a dispute.

States that restrict as is

This is where dealers get caught. Several states do not allow as-is sales by dealers on some or all used vehicles, or they cap it by vehicle age, mileage or price. In those states, the implied warranties cannot be disclaimed, or a minimum warranty period applies.

If you buy at auction in one state and sell in another, do not assume the rules match. The state where the sale happens controls your paperwork. Check your state's rule each year, since these laws get updated.

When a state does not allow as is, the Buyers Guide uses the implied warranties only option. Do not check As Is there.

Disclosing the right way

1. Check the correct box on the Buyers Guide before the car goes on display
2. Make sure the Buyer's Order repeats the same status
3. Have the buyer sign a separate As Is notice if your state wants one
4. Give the buyer a copy of everything they sign
5. Answer questions honestly, and write down anything you know about the car's history

Protecting yourself on as-is deals

Document what you know. A short inspection note, a list of reconditioning, and any disclosed issues (a check engine light, a known leak, a salvage history) all help show the buyer knew what they were getting. Invite the buyer to bring a mechanic. A buyer who declines an inspection after being offered one has told you something useful, and that goes in the file.

Avoid casual promises at the desk. Phrases like we will take care of you if anything comes up can be read as a warranty. If you want to offer a goodwill repair, make it a decision you make later, not a promise you make before the sale.

How a dealer management system helps

DMS Apex prints the As Is notice with the deal, the Buyers Guide in English and Spanish, and a Buyer's Order that carries your state's required wording, so the as-is status is stated the same way on every document. All of it prints in black and white. DMS Apex covers all 50 states and DC for $28 a month flat, with a 15-day free trial.