Buyback Disclosure

General Information

Utah's "Lemon Law" law requires that if a new vehicle is replaced or repurchased by a manufacturer due to an alleged "nonconformity," that the Utah title be stamped with a "brand" stating "MANUFACTURER BUYBACK NONCONFORMING VEHICLE." Utah law defines a nonconformity as:

"a defect, malfunction, or condition that fails to conform to the express warranty, or substantially impairs the use, safety, or value of a motor vehicle." (41-3-406 to 414)

However, the law states a "nonconformity" does NOT include a defect, malfunction, or condition that results from an accident, abuse, neglect, modification, or alteration of a motor vehicle by a person other than the manufacturer, its authorized agent, or a dealer.

The law also requires the manufacturer or any future seller – dealer or individual – to disclose to a potential buyer, in writing, and in a "clear and conspicuous manner," the fact that the vehicle is a manufacturer buyback.

Disclosure Statement – Contract Notice

Utah statute requires the following disclosure language to be contained in each contract for the sale or lease of a buyback vehicle or a nonconforming vehicle to a consumer.

Disclosure Statement

Important Points

  • The text of the disclosure shall be printed in 12 point boldface type except the heading, which shall be in 16 point extra boldface type.
  • The entire notice shall be boxed.
  • Each nonconformity shall be listed separately on a numbered line.
  • A seller must obtain the consumer's acknowledgment of this written disclosure prior to completing a sale, lease, or other transfer of title as evidenced by the consumer's signature within the box containing the disclosure.
  • Within 30 days after the sale, lease, or other transfer of title of a nonconforming vehicle, the seller shall deliver to the Motor Vehicle Division a copy of the signed written disclosure required for the sale, lease, or other transfer of title of the nonconforming vehicle. The Motor Vehicle Division shall include the disclosure in the nonconforming vehicle's records.

Disclosure Statement – Windshield Notice

There shall be affixed to the lower corner of the windshield furthest removed from the driver's side of a nonconforming vehicle, a disclosure statement form which shall be readily visible from the exterior of the vehicle. The form shall be in the following configuration and shall state:

"DISCLOSURE STATEMENT"

Vehicle Identification Number (VIN): ______________________

Year: ________ Make: _________ Model: __________________

Prior Title Number: ________________ State of Title:  ________

Odometer Reading:  ____________________________________

Warning: This motor vehicle was previously sold as new. It was subsequently alleged or found to have the following defect(s), malfunction(s), or conditions:

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THIS DISCLOSURE MUST BE GIVEN BY THE SELLER TO THE BUYER EVERY TIME THIS VEHICLE IS RESOLD

Important Points

  • The disclosure statement shall be at least 4-1/2 inches wide and 5 inches long.
  • The heading shall be boldface type in capital letters not smaller than 18 point in size and the body copy shall be regular or medium face type not smaller than 12 point in size.
  • Each nonconformity shall be listed separately on a numbered line.
  • The motor vehicle and title identification information must be inserted in the spaces provided.