Have I Got a Deal for You!

Mint condition. Immaculate. Owned by a little old lady in Pasadena, who drove it only to the bank. Despite those chromy come-ons for used cars, trouble often lurks under the hood. An estimated 50% of used autos suffer mechanical failures within 45 days of the sale. To make car shopping safer for consumers, the Federal Trade Commission in 1981 devised a rule that ordered dealers to disclose a car's known defects on a window sticker. But last week the FTC staff relaxed its requirements.

The new regulation, which is expected to be adopted on July 10, will still direct used-car dealers to put disclosure stickers on autos. But the notices will tell only whether the car has a warranty or specify which parts of the auto are guaranteed. The original rule never went into effect because it was blocked by a lawsuit and a lobbying blitz from auto dealers. The FTC now explains that the requirement would have Used cars in New York City been unhelpful to consumers because used-car dealers are often unaware of mechanical problems. The decision means that consumers will continue to shop for used cars the old-fashioned way, by kicking the tires and hoping for the best.