When must a dealer provide a warranty for a used vehicle?

A dealer is required to provide a warranty for a used vehicle when it is sold for more than $3,000. This regulation is in place to protect consumers by ensuring they receive some level of assurance regarding the vehicle’s condition and reliability, particularly when investing a substantial amount of money. The requirement highlights the importance of transparency and accountability in the auto sales industry, encouraging dealers to sell vehicles that are in satisfactory condition and providing recourse for consumers should issues arise shortly after the sale.

Lower thresholds, such as $1,000 or $2,000, do not trigger this warranty requirement, as these price points are generally considered to be lower risk for dealers and often reflect vehicles that might be in less than optimal condition or older models. Thus, the threshold of $3,000 establishes a clear boundary for when consumer protections through warranties become necessary.