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What You Should Know When You Buy A Used Car
by Fraser Wheelock
http://www.fwcar.com
My dad used to refer to buying a used car as 'buying
someone else's headaches'. There's a good deal of truth to
his statement. When you buy a used car, you're purchasing
a car that has been used, and quite possibly abused, by
one or more owners. It may have mechanical problems, or
just be showing its age.
While the law in each state differs slightly from the
original, they all lay out which disclosures must be
made by the seller before a sale, and what warranties must
be honored when a sale is made.
Disclosures
Any used car dealer that sells more than six vehicles per
year is bound by law to make particular disclosures. These
include all major mechanical systems; any problems that may
be specific to the make and model of the vehicle; any
recalls by the manufacturer; whether the car is being sold
with a warranty or as is.
Another thing that you should know when considering a used
car purchase is the payment options available to you. The
basics are simple: are you paying the full price for the
car on purchase, or will you finance all or part of it?
You have a right to a clear statement of the price of the
car. If you are financing all or part of the vehicle's
price, you should receive a statement that breaks down the
cost into purchase price and finance charges to help you
make your decision.
You have a right to know the dealer's return policy. There
is a popular misconception that used cars are subject to a
three day 'cooling off period' during which time you may
cancel a sale without penalty. This applies only to mail
order goods and purchases made over the phone in most
states. Be sure that you know the dealer's return policy
before you leave the lot with your new car.
Most dealers arrange financing through a bank or finance
company. Since the vehicle serves as collateral, a car loan
acquired that way is often easier to get than one through a
conventional bank. If your credit is impeccable, though,
arranging your own financing as above could save you money
in the long run.
Know what you're buying.
Under the law, any car dealer who sells more than six cars
per year must place a Buyer's Guild in each vehicle for
sale. The Buyer's Guide will list the price of the car, the
warranties with which it is sold, any mechanical problems
that it has if it is sold 'as is', and information designed
to help the consumer avoid being cheated.
- whether the car is being sold 'as is'
- what parts of the car are under warranty
- what, if any, percentage of repair costs the dealer pays
- a reminder that spoken promises are not enforceable
- the major mechanical and electrical systems on the car
- problems that you should look out for
- a reminder to ask to have the car inspected by an
independent inspector
5. Have the car inspected by an independent mechanic.
Before you finalize any sale, you have a right to have it
inspected by the mechanic of your choice, at your expense.
While there's no 'standard' pre-inspection procedure, your
mechanic should check all the major systems of the car and
provide you with a written evaluation, including any
repairs needed and their estimated cost. If you still want
to buy the car after seeing the inspection report, you can
use the information you learn to negotiate with the dealer
regarding the price of the car.
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