A used car is one that is not brand new and it must also be one that has done more than 1, 00,000 miles at the time of the sale or hand over. Another point is that vehicle should have been used only for personal use and not for any commercial purposes. Once these clauses are satisfied, the car can be sold to a prospective buyer. At the time of sale, the need for compliance with the used car warranty laws is essential. Infact some companies insist that it be given in writing for the transaction to be complete and be considered legal. The Lemon Law as it is called was created to protect the interests of the buyer from any fraudulent act of the seller.

The used car warranty law covers all operational repairs that occur in the car along with engine failure and other related mechanical faults. If the buyer is not satisfied or the performance of the car is not upto the mark even after repeated service, the buyer can decide to give the car back. At such a time he is entitled to getting full refund, the exact amount he paid at the time of purchase.