‘I'm Stuck With a $26,000 Loan:’ Woman Buys Used Subaru From Jeep Dealership. Then She Has Transmission Issues 3 Weeks Later

"It all make since on why the previous owners traded this car at a jeep dealership."

Subaru Lemon

Photo by: Unsplash.com

Chad Swiatecki

By: Chad Swiatecki

Jul 26, 2025 at 9:00am ET

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Buying a used car from a dealership is supposed to feel safer than buying from a stranger. A viral TikTok creator thought so too, until her recently purchased used Subaru broke down within days, leaving her worried about a five-figure loan on a vehicle that may not be roadworthy.

In late June, Atlanta-based Jabriel Williams (@ladij_world) shared with her Instagram followers the joy of purchasing a Subaru Ascent from a Jeep dealership, which provided her with ample room for her sons and her role as a young businesswoman. Within a month, however, transmission troubles burst her happiness.

“Took it to the actual Subaru dealership and the diagnosis came back as a book!!” she wrote in the caption of a July TikTok clip that’s been viewed more than 1.3 million times. In the on-screen caption, she writes that she’s $26,000 in the hole for the vehicle.

Williams hasn’t publicly shared the model year or mileage of the Subaru Ascent she purchased, leaving key mechanical and financial context unclear. What’s also unclear is whether the used SUV came with any form of dealership warranty. Williams hasn’t mentioned purchasing an extended warranty or service contract, and the unnamed Jeep dealership that sold the vehicle doesn’t appear to have publicly responded.

That lack of clarity has fueled debate in the comments section. Some viewers claim that any dealer-sold used car must carry a 30-day warranty. Others say she’s out of luck unless she bought the coverage explicitly. Still, others offer cynical or legally risky advice, including exaggerating damage or defaulting on the loan.

Do Used Cars Come With an Automatic Warranty?

One of the most common and confusing claims in the video’s comments section is that “dealerships have to give you a 30-day warranty.” But the truth isn’t so simple.

According to the Federal Trade Commission, federal law does not require used car dealers to provide a warranty. Many used cars are sold “as is,” especially older models or cars sold outside of a Certified Pre-Owned (CPO) program. Under an “as is” sale, the buyer assumes responsibility for any issues once they drive off the lot—unless the dealer makes specific promises in writing.

Dealerships are legally required to display a Buyer's Guide sticker on the window of every used car, which discloses whether the vehicle is sold with a warranty or not. That guide also outlines which systems are covered and for how long, as well as whether a warranty is offered. But unless that form indicates coverage, there’s no automatic guarantee.

Some dealerships voluntarily offer short-term, limited warranties with coverage lasting 30, 60, or 90 days, but these policies vary and are not mandated by law.

Certified Pre-Owned vehicles, typically sold through a franchised dealership for that specific brand, are a different case. CPO Subarus, for example, undergo rigorous inspection and come with a seven-year/100,000-mile powertrain warranty from the original sale date.

What About Lemon Laws?

Lemon laws are designed to protect consumers from defective vehicles, but in most states, they only apply to new cars, not used ones. That misconception appeared frequently in the TikTok discussion, with many users mistakenly suggesting that Williams could return the car under a state lemon law.

In Georgia, where Williams is based, the lemon law specifically does not apply to used vehicles. It only covers new vehicles registered in Georgia for personal or family use, with protections that expire after 24 months or 24,000 miles.

A handful of states, such as California, New York, Massachusetts, and New Jersey, have limited lemon law protections or implied warranty requirements for certain used vehicles sold by dealerships. These laws often apply only to cars under a specific mileage or age limit and require the dealer to provide a warranty of at least 30 days or 1,000 miles.

But for most used car buyers, especially those buying “as is,” lemon law protection is not an option.

What do you think?

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What Buyers Can Do to Protect Themselves

Williams’ story has resonated with millions because it reflects a common fear: Getting stuck with a bad car and no backup. Here’s what buyers can do to reduce that risk:

Get a pre-purchase inspection. Even when buying from a dealership, it’s worth paying a trusted mechanic to look over the car before signing the papers, especially if it’s a different brand than what the dealer typically sells.
Ask explicitly about warranties. Does the car come with any dealership warranty or service contract? If so, get the details in writing.
Review the Buyer's Guide sticker. Federal law requires every used car to have a window sticker disclosing whether it’s sold “as is” or with a warranty. That’s your starting point for understanding what’s covered.
Consider a third-party extended warranty, but only after vetting the provider. Some aftermarket warranties are helpful, but others are notoriously hard to redeem.
Check for recalls and known issues using the car’s VIN at nhtsa.gov/recalls. Some known defects may be repairable at no cost under a manufacturer's recall.

Motor1 reached out to Williams via direct message.

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