Two recent cases resolved by the Office of the Attorney General (OAG) serve as timely reminders to all Hoosiers to exercise extreme caution when purchasing used vehicles. In both scenarios, used car dealers failed to deliver titles and/or provide promised warranties to customers who paid for vehicles. When buying a warranty:
If a consumer is buying a car from a dealership and purchases a warranty administered by a third party, the consumer should:
-Ensure he or she receives a warranty contract at the time of sale and thoroughly reviews its terms;
-Ask the dealer when it will forward payment to the third-party warranty provider; and
-Contact the warranty provider after the date the dealer stated it would remit payment and ensure the warranty was purchased by the dealership and is active.
-If a consumer pays for a warranty contract and the warranty provider never receives payment from the dealership, the consumer should immediately notify his or her lien holder of the issue. In addition, the consumer should file a complaint with the Attorney General’s office at or by calling 1-800-382-5516.
-When awaiting titles for newly-purchased used vehicles:
-Be aware that dealers have 31 days from the date of sale to deliver a valid title.
-Ask either to see the title itself or a copy of the title; at a minimum, request to know the current location of the title.
-Ensure you receive a “dealer title affidavit,” which should be completely filled out and signed by the dealer stating the current location of the title and the date the dealer expects to convey the title to you.
-If failing to receive a title within 31 days, immediately file complaints with the Secretary of State Auto Dealer Division and also with the Attorney General’s office at or by calling 1-800-382-5516.