Auto-rental agencies such as Hertz, Avis, and National offer some cars to the public. While these cars may have been driven long and hard, most have been serviced regularly. And some companies provide a limited warranty. The Federal Trade Commission requires every used car sold by a dealer to display a Buyer's Guide label containing warranty information. Beyond that, only Massachusetts, New York, and Rhode Island have effective lemon laws to protect buyers from dealers who sell faulty merchandise.
Protection extends to all but the oldest and cheapest used cars.
Used-car warranty laws are on the books in Connecticut, Main, Minnesota, Wisconsin, and the District of Columbia. You can often get a good deal if you buy a car from a private party. That's because there is no dealer overhead and markup figured into the price. If you shop through a newspaper ad, ask about the car's condition and mileage, whether it's been in a wreck, and why it's being sold. Also ask whether the seller is a dealer.