Some new cars have defects that cannot be repaired. When that happens, Utah’s Lemon Law requires the manufacturer to buy the vehicle back. But what happens to that vehicle afterward? These cars often re-enter the used vehicle market. To protect consumers, Utah imposes strict disclosure rules on dealers. If a dealer sells a manufacturer buyback, they must follow specific steps. Here is what dealers are legally required to tell you.

How a Vehicle Becomes a Buyback

Utah’s Lemon Law generally covers new vehicles still under the manufacturer’s express warranty. A defect must substantially impair the vehicle’s use, value, or safety. The manufacturer gets a reasonable number of chances to repair it. Repeated failed repairs or long periods out of service can trigger a buyback. The manufacturer then repurchases the car from the original owner.

The Branded Title

When a manufacturer buys back a defective vehicle, the title changes. The original certificate of title must be permanently altered. It must clearly state: “MANUFACTURER BUYBACK NONCONFORMING VEHICLE”. The brand alerts future buyers that the car had unresolved defects. It remains on the title permanently. A title search or vehicle history report will show the brand. Ask to see the title before you agree to purchase the car.

The Mandatory Contract Disclosure

Dealers cannot hide a buyback vehicle’s history in fine print. Utah law mandates a specific disclosure in the sales contract.

• The Warning Box: The contract must feature a clear, boxed disclosure statement.
• Bold Text: The heading must use large, bold lettering.
• List of Defects: The dealer must list every specific defect separately on numbered lines.
• Required Signature: You must sign your name entirely inside this warning box.

This ensures you acknowledge the exact defects before completing the purchase. The dealer must then send this signed document to the state.

The Windshield Notice

The disclosures begin before you even read a contract. Utah requires a warning label on the vehicle itself.

• Placement: The sticker must sit in the lower corner of the windshield furthest from the driver.
• Visibility: It must be easily readable from outside the vehicle.
• Size Rules: The state dictates the exact dimensions and font sizes for this sticker.
• Defect Details: Like the contract, it must clearly list all original defects and malfunctions.

Why These Rules Matter

These strict rules prevent deceptive sales practices. A buyback vehicle may look like a bargain at first. In reality, the car once failed to meet basic standards. Utah law ensures you know what you are purchasing. You can then make an informed financial decision.

What to Do If the Disclosures Are Missing

Keep the sales contract, the window sticker, and any advertising for the vehicle. Photograph the windshield and the title if you can. Note what the salesperson said about the car’s history. A missing brand, sticker, or signed disclosure can support a claim. Remedies may include rescinding the sale or recovering damages.