What do the terms "Full" and "Limited" refer to in the context of the Federal Trade Commission Used Car Rule?

The terms "Full" and "Limited" specifically refer to types of warranties in the context of the Federal Trade Commission Used Car Rule. This regulation requires car dealers to provide buyers with certain information about the warranties attached to used vehicles. A "Full" warranty typically offers comprehensive coverage, meaning that the dealer is obligated to repair or replace any defective part of the vehicle at no cost to the buyer for a specified period or mileage. On the other hand, a "Limited" warranty may come with restrictions, such as covering specific parts only or limiting the duration of coverage, indicating that the warranty does not cover all aspects of the vehicle.

Understanding these types of warranties is crucial for consumers, as it informs them of their rights and the coverage they can expect after purchasing a used vehicle. This distinction plays a significant role in how warranties are communicated to consumers, ensuring transparency and protecting their rights under the rule.