Don't Drive Off With A Bad Deal
Tuesday, Jul 8, 2008
LITTLE ROCK – Today, Attorney General Dustin McDaniel issued this consumer alert to provide Arkansans with tips on how to get the most bang for their buck when buying a car.
"With the end of the model year approaching, many consumers are starting to shop for a bargain; however, shoppers should take the same precautions that they would at any other time of the year," said McDaniel. "It always pays to shop around, and if you do your homework beforehand, you'll be better off in the long-run."
Before you make a trip to the dealership, arm yourself with the following information:
1) A price. The car you want may not be the car you can afford. Set a top price and stick with it. Make the biggest down payment you can, and choose the shortest loan you can afford.
2) Credit score. Get a copy of your credit report so you are aware of what creditors will see. A free copy of your credit report is available at www.annualcreditreport.com or you can call toll free: 1-877-322-8228. For hearing impaired consumers, TDD service is available at 1-877-730-4104. Errors or accurate negative information can impact your ability to get credit and/or a good finance rate.
3) Trade-in value. Know how much your trade is worth (if you have one) and know the value of the vehicle you are purchasing. Information can be found in auto buying guides, the Internet, your bank, and other sources.
4) The best financing rate available. You are not just shopping for a car; most consumers are also shopping for financing. Compare current finance rates being offered by contacting various banks, credit unions or other lenders before you shop for a car. With this information, you can compare bank quotes and dealer quotes to get the best deal. Also, be aware that the longer the vehicle is financed, the more interest you will pay. If you choose a plan with a low monthly payment, the term of your loan will be longer, and you will end up paying more for the car.
Many consumers buy used or "pre-owned" cars in order to stretch their money. While many used cars are good investments, a wise consumer will keep the following tips in mind when shopping:
Check to see if the car comes with a warranty and, if so, what the specific protections are that the dealer or seller will provide. Remember, if you buy a car "as is" and have problems with it, you may have to pay for any repairs yourself.
Ask to have the car inspected by an independent mechanic, or arrange an inspection yourself before you agree to a purchase.
Contrary to popular myth, there is no state or federal law that gives consumers a blanket right to cancel a car purchase. However, a law passed in 2005 gives Arkansans rights to cancel a vehicle purchase if the seller attempts to change the terms of the sale after the buyer leaves the lot with only a verbal contract or incomplete written contract in place. To avoid any controversy, do not take possession of the car until the financing is in place and agreed to by all parties, including the finance company.
Make sure you get any promises made by the dealer or seller in writing (for example, to replace a broken tail light). Verbal promises are difficult to enforce.
Inquire about any prior damage to the car and its repair history. Don't automatically accept the seller's response as accurate.
If you have a complaint about a vehicle, dealer or would like to request more information, log onto the Attorney General's Web site, www.ArkansasAG.gov or call the Public Protection Department at 501-682-2341 or 1-800-482-8982, toll-free statewide.
