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Part 1

Used Car Buyer's Guide

Maine’s Used Car Information Law (Title 10, Ch. 217) requires all car dealers to provide certain warranties (guarantees) and to post certain information on used cars offered for sale. If the dealer has not obeyed the law and refuses to repair a buyer’s car, the buyer may be able to force the dealer to take the car back and give refund the buyer’s money. Used Car Information Act, 10 M.R.S.A. §§ 1471 – 1478

FAQs

Do I have to post the FTC buyer’s guide or Just the Maine Buyer’s guide?

Just the Maine Buyer’s Guide. According to the FTC, the Federal Used Car Rule applies in all states except Maine and Wisconsin. These two states are exempt because they have similar regulations that require dealers to post disclosures on used vehicles.

Where can I buy the Maine Buyer’s Guide?

LotDrop is your go-to source for all automotive forms, products and apparel including the Maine Buyer’s Guide.

Does the buyer have to sign and date the buyer’s guide and how long does the dealer need to retain a copy?

The dealer must require the buyer to sign and date the disclosure statement, provide the buyer with a copy of the signed and dated statement and maintain a copy of the signed and dated statement for 3 years following the sale of the vehicle. 1475 2A

If a consumer buys a used car from a dealer and changes their mind, can they return the car and get their money back?

Under most circumstances, you cannot return the car only because you have changed your mind. While products sold to you at home (door to door) may be returned within 3 days if you change your mind, Maine law does not allow a "cooling off" period for sales taking place outside of the home, such as used cars purchased from a dealer.

I put a deposit on a used car but did not take delivery. Is the dealer required to return my deposit if I change my mind?

It depends on the dealer's policy. While Maine law does not require that the deposit be returned, it does require the dealer to provide you with a written copy of its deposit policy. Therefore, it is important to ask about the deposit policy and read all documents carefully before you place a deposit on a used car.

What does a dealer need to disclose about a used car to the consumer through the Maine Buyer’s Guide?

Maine law requires a Used Vehicle Buyer's Guide be posted on a used car's window a complete description of the motor vehicle to be sold, including, but not limited to:


A. The make, model, model year and any identification or serial numbers of the motor vehicle;


B. The dealer's duty to disclose promptly the name and address of the previous owner of the motor vehicle, or dealer, upon the request of any person, the principal use to which the motor vehicle was put by that owner, such as personal transportation, police car, daily rental car, taxi, rideshare, livery service or other descriptive term, and the type of sale or other means by which the person acquired the motor vehicle, such as trade-in, sheriff's sale, repossession, auction or other descriptive term, to the extent that such information is reasonably available to the person;


C. A statement identifying any and all mechanical defects known to the dealer at the time of sale;


D. A statement identifying the type of damage, if any, that the vehicle has sustained, such as fire, water or substantial collision damage, if that information is known to the dealer;


E. A statement, if applicable, that implied warranties with respect to the vehicle are excluded or modified. Nothing in this paragraph may be construed to affect the requirements of Title 11, section 2-316;


F. A statement, if applicable, disclosing that the vehicle was returned to the manufacturer, its agent or authorized dealer, for its nonconformity with express warranties. The statement must identify the nature of the nonconformities;


G. If the vehicle is repossessed, a statement identifying this fact;


H. The dealer's duty to disclose conspicuously in writing the dealer's policy in relation to the return of deposits received from any person. A dealer shall require that a person making a deposit sign the form on which the disclosure appears; and


I. A dealer that provides to a consumer a vehicle history report prepared by a person other than the dealer has no liability for inaccuracies in the vehicle history report if the dealer makes the following disclosure: "[Name of dealer] is pleased to provide you a courtesy copy of a service history report for the vehicle you are considering purchasing. [Name of dealer] makes no representation as to the accuracy of this service history report."


Any dealer who offers for sale to the consuming public a repossessed vehicle that has been obtained by the dealer through any transaction other than a retail sale and who meets the warranty and disclosure requirements of section 1474 and subsections 1 and 2A of section 1475 has no other liability under this chapter, except for any additional warranties negotiated between the dealer and the consumer.


Please note that if that dealer offers for sale to consumers a used motor vehicle that has been obtained by the dealer through an auction located outside the State at which buyers are limited to licensed dealers and the seller of the used motor vehicle is neither a resident of this State nor a dealer licensed in this State, the dealer will need to clearly disclose on the Maine Buyer’s guide that the vehicle was acquired at an out-of-state auction and that historical information regarding mechanical defects and substantial damage is not available.

What is considered major mechanical problems with the car?

A dealer make “A statement identifying any and all mechanical defects known to the dealer at the time of sale” "Mechanical defect" means any defect, failure or malfunction of the mechanical system of a motor vehicle, including but not limited to the motor and transmission, electrical, hydraulic or suspension systems, and any defect, damage, failure or malfunction that affects the safety or normal use of a motor vehicle.

Is a dealer liable for inaccuracies in a third party vehicle history report provided by the dealer?

No. A dealer that provides to a consumer a vehicle history report prepared by a person other than the dealer has no liability for inaccuracies in the vehicle history report if the dealer makes the following disclosure: "[Name of dealer] is pleased to provide you a courtesy copy of a service history report for the vehicle you are considering purchasing. [Name of dealer] makes no representation as to the accuracy of this service history report."

What sort of disclosure is needed for lemon law buy backs?

If a vehicle has been the subject of a complaint pursuant to chapter 203‑A or any state's new motor vehicle lemon law that protects consumers from motor vehicles that do not conform to all manufacturer express warranties and that complaint was either filed in court or accepted for state-certified arbitration and the manufacturer subsequently purchased back the vehicle, either as the result of a court or arbitration order or voluntary settlement:


A. The dealer must disclose this fact, if known, when disclosing any defects in the Maine Buyer’s Guide and the manufacturer must disclose this fact when selling the vehicle to a dealer and completing the seller’s statement required by subsection 3 of section 1475.

Is the dealer required to give a 30-day warranty on used cars?

No. Maine law does not establish a set warranty coverage (other than state safety inspection warranty) or time period that a dealer must provide for a used car. Maine law also does not specify what items and terms a warranty will include. Many times a dealer will have standard written warranty coverage. Review any written warranty carefully to determine the length of the dealer's warranty and the items covered for your used car. These will be listed on the express warranty section of the Used Vehicle Buyer's Guide.

What is a 'warranty of inspectability'?

Generally, all used cars sold by dealers must have an inspection sticker on the car that was issued within the past 60 days. This is called a 'warranty of inspectability'. This means that the vehicle has been inspected for the purposes of issuing an inspection sticker, and will pass inspection on the day that your buy it.

When may a used car be sold without a warranty of inspectability?

A car will not have an inspection sticker when is it is posted with an 'Unsafe Motor Vehicle' certificate. This certificate is completed by a licensed inspection mechanic and indicates the car was inspected, but did not pass the inspection. The certificate will list the items that failed inspection. If a consumer is interested in purchasing a car with this designation, the car must be towed from the dealer's lot, cannot be test driven on Maine roadways, and cannot be issued a temporary plate.

The Used Vehicle Buyer's Guide says that the car is a "repaired","salvage" "rebuilt salvage " or "rebuilt". What does this mean?

This means that the car has been declared a total loss by an insurance company, and has been repaired. This may have an effect on the value of the vehicle.

The Used Vehicle Buyer's Guide indicates damage to the "unibody." What is a unibody?

A unibody is what used to be called a frame, with the body engineered to resist buckling. Quite often unibody damage is an indicator that the vehicle was a total loss in a collision. You may want to have the car examined by your mechanic. You should also consult with your insurance agent and lender prior to purchasing a vehicle with this designation.

How can a consumer get the name of the last owner of the car that they are interested in?

The dealer is required to give a consumer the name and address of the last owner, if requested information. This does not violate privacy laws.

Is it true that a Maine dealer needs to obtain a written statement from seller of a used motor vehicle such as prior use, mechanical defects, substantial collision damage?

Yes, but there are limited exceptions listed below. The law provides that a dealer shall obtain from the seller of a used motor vehicle a written statement containing the following information:


A. The make, model, model year and any identification or serial numbers of the motor vehicle;


B. The name and address of the seller, the principal use to which the motor vehicle was put by the seller, such as personal transportation, police car, daily rental car, taxi, rideshare, livery service or other descriptive term


C. A statement identifying any and all mechanical defects known to the seller at the time of sale; and


D. A statement identifying the type of damage, if any, that the vehicle has sustained, such as fire, water or substantial collision damage, if such information is known to the seller.
Any dealer who offers for sale to consumers a repossessed vehicle that has been obtained by the dealer through any transaction other than a retail sale is not subject to the provisions of this subsection.


A dealer is not subject to the provisions of this subsection if that dealer offers for sale to consumers a used motor vehicle that has been obtained by the dealer through an auction located outside the State at which buyers are limited to licensed dealers and the seller of the used motor vehicle is neither a resident of this State nor a dealer licensed in this State; However the dealer will need to clearly discloses on the Maine Buyer’s guide that the vehicle was acquired at an out-of-state auction and that historical information regarding mechanical defects and substantial damage is not available.


The seller of the used motor vehicle shall sign and date this written statement and the dealer who buys the vehicle shall maintain a record of it for 2 years following the sale of the motor vehicle.
"Substantial collision damage" means any damage to a motor vehicle from a collision when the costs of repair of that damage, at the time of repair, including replacement of mechanical and body parts, exceed $3,000.

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Supporting content

  
Part 2

Lemon Law

Maine’s Lemon Law does not generally apply to used cars. Maine's Lemon Law applies only to new vehicles, OR IN VERY LIMITED CIRCUMSTANCES TO USED CARS. If you have a question about the Lemon Law, please contact consumer.mediation@maine.gov.

The Maine Lemon Law covers any new or used car, motorcycle, van, truck or RV, bought or leased in Maine from a dealer and which is still within the Lemon Law’s “term of protection.” This Lemon “protection period” is the length of the manufacturer’s express warranty, or three years from the date of delivery to the original consumer buyer, or 18,000 miles of use,

whichever comes first. You must notify the manufacturer or the dealer about your vehicle’s defect before this protection period ends. Subsequent owners can still be eligible for state lemon law arbitration. This can happen if you purchased the vehicle used but it is still protected by the manufacturer’s original express warranty.

Even if they fall within the protection period, the following cars are not covered by the

Lemon Law: (1) those purchased for a governmental agency, a business which registers three or

more vehicles, (2) primarily commercial vehicle that have gross vehicle weight (G.V.W.) of

8,500 pounds or more, or (3) vehicles purchased in order to resell them

If the manufacturer cannot fix the car, then the consumer has the right to argue the case before a State Arbitrator, free of charge. This hearing must come within 45 days of acceptance of the Lemon Law application and if the Arbitrator concludes that the car is indeed a Lemon, the consumer can receive either a new vehicle or the return of the purchase price. You should contact the Attorney General's Lemon Law Arbitration Office and find out if you are eligible for a free Lemon Law Arbitration hearing. If you have a question about the Lemon Law, please contact consumer.mediation@maine.gov.

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Part 3

Motor Vehicle Inspections

Maine law requires all motor vehicles to undergo a safety inspection once a year. Vehicles registered in Cumberland County are also required to undergo an emissions test. Inspections are conducted at licensed automobile dealerships, service stations and garages.  

Online Inspection Sticker Sales

The Motor Vehicle Inspection Unit has partnered with InforME to offer Online Sales of inspection stickers and materials using credit/debit cards.  This will reduce turnaround time of shipping and the handling of orders.

Station ID is required (including three letter designator - which are the three letters that precede your station number on you station license) ie. PUB 1234.  Once logged in, the site will allow you to purchase inspection stickers that you are licensed for and inspection materials that you are authorized to obtain.

  • For routine questions about motor vehicle inspections, or to make a complaint on an inspection station call 207-624-8935.
  • To inquire about inspection station and technician licensing call - 624-8935.
  • Information for inspection stations and technicians
  • TintWaiver (PDF)
  • Fees (PDF)
  • Inspection Refusal Form (PDF)

Inspection Station Applications

FAQs

How can I obtain a copy of the Maine Motor Vehicle Inspection Manual?
How do I become a licensed inspection technician?

An applicant must be at least 17 ½ years of age and have a valid, active Maine driver's license. Applications may be obtained using this form or by writing to:

Maine State Police - Traffic Division
Motor Vehicle Inspection Unit
20 State House Station
Augusta, ME 04333-0020

Once the application has been submitted and approved, you will be scheduled for a written examination. Examinations are administered at various locations throughout the state. The approval process consists of a criminal and driving history check. Allow at least 60 days for the application to be processed and approved.

How does my business become a licensed inspection station?

A business may apply to become a licensed inspection station by using this form or making written application to:

Maine State Police - Traffic Division
Motor Vehicle Inspection Unit
20 State House Station
Augusta, ME 04333-0020

Applications may be obtained from the links below or by writing to the address above. Inspection station owners and on-site managers must go through the same approval process as inspection technicians, and should allow at least 60 days for the application to be processed and approved. Once the application is approved, it will be assigned to an Inspector for a facility inspection to ensure the reliability and fitness of the premises, including all tool requirements. The business must employ a licensed inspection technician that is available to perform inspections at a minimum of 16 hours per week. The complete list of inspection station tools and requirements may be found in the Inspection Manual (PDF).

How long is my inspection technician license valid for, and how do I renew it?

Inspection technician licenses are valid for a period of 5 years from the date of issue. An inspection mechanic shall file a new application in order to be renewed. An examination is not required if application for a renewal is made within one year of expiration.

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Part 4

Dealer Bond

Maine Revised Statutes 29-A mandates auto dealers operating in the state to obtain a motor vehicle dealer license with the BMV. The Maine legislature enacted the license and regulations to ensure that dealers engage in ethical business practices and remit required taxes and fees. In order to provide financial security for the enforcement of the license law, dealers must purchase and maintain either a $25,000, $50,000, $75,000 or $100,000 motor vehicle dealer surety bond  to be eligible for licensure.

  • Bond Amount: The required bond amount is determined by the dealer’s annual sales volume:
    • $25,000 for 0-50 vehicles sold per year
    • $50,000 for 51-100 vehicles sold per year
    • $75,000 for 101-150 vehicles sold per year
    • $100,000 for 151+ vehicles sold per year
  • Who Needs It: All individuals and businesses that sell or deal in motor vehicles
  • Purpose: To ensure the public will receive compensation for any damages should the auto dealer fail to comply with dealer licensing law

Supporting content

  
Part 5

Advertising Motor Vehicles

Maine has extensive and specific laws, rules and guidance as to how dealers should (and shouldn’t) advertise Vehicles. MIMVA has taken the liberty to highlight a few of the common issues that dealer about.   

FAQs

What vehicles are covered by the advertising regulations?

“Motor vehicle” means any self-propelled vehicle designed primarily to transport not more than 14 individuals on public ways, except motorcycles, snowmobiles and any vehicle exclusively on a rail or rails. Please note that there are plenty of other broad prohibitions regarding deceptive advertising that would cover off road vehicles as well.

Can I offer a different price on the internet versus what is listed on the vehicle?

The Attorney General’s office has rule titled “Sale price available to all”. Advertised vehicles shall be offered at or below the advertised price regardless of whether the customer has actually seen the advertised price prior to the sale, unless the ad clearly and conspicuously discloses that a customer must bring the ad to the dealer in order to receive the sale price, and the sale price is not given to anyone who does not do so.

In regulating advertising, TILA and Reg Z use the concept of “triggering terms.” An advertisement that uses particular terms triggers further disclosure requirements.

What are the Truth-in-Lending Act (TILA) or regulation Z advertising requirements?

The Truth-in-Lending Act (TILA) and Reg Z, apply to the advertisement of specific terms of consumer credit including automobiles. If specific credit terms are stated in an advertisement, the terms must actually be available through the creditor. If the credit offers are subject to restrictions or qualifications (i.e. limited time or buyer’s creditworthiness), the advertisement must clearly disclose this fact. The triggering terms are:

  • The amount or percentage of any down payment
  • The number of payments or period of repayment
  • The amount of any payment
  • The amount of any finance charge

If one or more of these triggering terms are used in an advertisement, the dealer must also state the amount or percentage of the down payment, the terms of repayment, and the annual percentage rate, using that term or “APR.” Don’t hide the disclosures in the small print as all disclosures must be made clearly and conspicuously.

If the dealer offers a range of possible credit terms, the dealer may use examples of typical credit transactions offered at the dealership. Each of the examples used must contain all the applicable required terms.

I am advertising a price on a vehicle, what should be included or can be excluded?

When advertising the motor vehicle’s price the stated price must include all extra charges, as defined at Section 1(D), which the customer is asked to pay. “Extra charge” means any consumer charge listed or requested by the dealer for the purpose of a new motor vehicle which is not included in the manufacturer’s suggested retail price for that vehicle. Some examples are the following charges that are typically not listed on a “Monroney” label (the manufacturer’s suggested retail price sticker): handling charges, floor planning costs, charges for documents or preparing documents and preparation services.

The advertised price need not include state and local taxes, or title fees. Options installed at customer request need not be included in the advertised price.

Can I offer a minimum trade in allowance?

No. According to the Maine Attorney General, since the amount of trade-in allowance will vary depending on the condition, model, and age of a buyer’s motor vehicle, no specific trade-in amount or range of amounts can be used in advertising.

Can offer a “free” item if the person has to purchase a vehicle?

No. According to the Maine Attorney General, the word “free” may be used in advertising only when the advertiser is offering an unconditional gift that is unrelated to any purchase. Receipt of the “free” merchandise or service cannot be conditional on a purchase of a motor vehicle whose price is negotiable.

Can I advertise “no money down”?

If an advertisement states "no money down" or similar terms, then the dealer must deliver the advertised vehicle, so described, to the purchaser without any initial payment or other initial obligation other than the negotiation of a lien contract for the advertised purchase price.

What is meant by “advertisement? How broad is that term?

The term is very broad. “Advertisement,” “advertising,” or “ad,” unless otherwise noted, means any oral, written, electronic or graphic statement made by, for, or in the name of a car dealer that is in any manner connected with the solicitation of business. The term includes statements made in newspapers or other publications or on radio or television, or contained in any sign, motor vehicle window sticker, circular, brochure, letter, or other writing.

When do I have to return a deposit?

10 M.R.S.A. § 1174 (4) (D) ensures that there is no confusion on car deposits. New and used cars the dealer must disclose conspicuously in writing the dealer’s policy on returning a consumer’s deposit on a car. If the consumer makes a deposit, the consumer must sign the form on which the disclosure appears.

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Sources:

1) Maine Bureau of Motor Vehicles: Used Car Buyer's Guide