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Your Rights When Buying A Used Car
by Fraser Wheelock
http://www.fwcar.com
In 1975, the federal government enacted the Magnuson-Moss
Warranty Act. Widely known as the 'Lemon Law', it provided
protections and assurances to consumers for purchases that
cost over $25, and came with express or implied warranties.
In the time since, every one of the fifty states has added
its own set of lemon laws to their state books. In many
cases, the sale of used cars is specifically regulated.
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.
1. Know your payment options.
Basically, you have two choices: pay the entire amount in
full, or finance the total amount over time. You can apply
for a car loan from a bank, but dealers offer a wide
variety of loan options. Unless you have your heart set on
one particular vehicle, shop around for the best price at
the right terms for your pocket. Before you close the deal,
make sure that you know:
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?
Paying in Full
In this case, paying cash for your car includes the option
of taking out a personal or car loan with your own bank in
order to pay the dealer off for your car all at once. To
the dealer, it's the same as being paid in cash, and you
may be able to use it as leverage to get a better price on
the car of your choice.
3. Read the Buyers' Guide for the car you are buying.
Used car dealers ARE required by law to post a Buyer's
Guide in each vehicle that they offer for sale. The Buyer's
guide must make certain disclosures and make some specific
statements. Among those statements and disclosures are:
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.
Read the Buyer's Guide carefully so that you know exactly
what you are buying and what you are paying for it. If the
dealer agrees to terms that are different than those on the
Buyer's Guide, insist that those conditions be noted on the
Buyer's Guide. By law, in the event of a dispute in which
the terms of a contract are different than the terms on the
Buyer's Guide, the Buyer's Guide generally takes
precedence.
You have a right to have any car that you are considering
purchasing inspected by an independent inspector at your
own expense. If the dealer does not want the car to leave
his lot, you have the right to bring your own mechanic onto
the lot to examine the car you are considering.
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