Industry Tips
Car, New or Used, Buying
Getting a car, new or used, takes time, research, and energy. Make sure that you examine the car thoroughly inside and out, including the engine and the trunk. Do a test drive under as many driving conditions as you can, highway and city, bumpy and smooth streets.
If it is a used car, take special precaution since many do not come with a warranty and the rule "As Is" rule applies. Except for time remaining on original factory warranty, ask if there are any other warranties in place. The vehicle becomes your full responsibility as soon as the sales contract is signed. If something does go wrong with the car, in the absence of a written warranty, repair is your responsibility. You can check back with the seller to see if they will do something to help you but they are under no obligation whatsoever to do so.
Another option is to buy a "certified" used car. These vehicles have been previously leased or traded in. Dealerships have the vehicles undergo a detailed inspection by a mechanic in order to qualify to be sold as "certified". If the qualifications are met, various warranties are offered with the sale of the vehicle. Each dealership offers different certification programs, for details please contact your local dealership.
When getting a car, you may consider financing, no financing or leasing.
Purchasing has the advantage of maintaining equity in the car, may require a high down payment, and is probably the best option if you plan to keep the car longer than just a few years.
Leasing has the advantage of generally requiring a low down payment and may be the best option if you expect to keep a car for only a few years. Also if you use your car for business, this may be a good way of tracking vehicle expense use for tax and business purposes.
Leases may be closed end, which generally means that consumers may use the car for the entire term of the lease and return it without any further obligation at the termination of the lease or open end, which allows lessor and lessee several negotiable options at the term of the lease.
No matter how you decide to pay for your car, examine, and carefully save all paperwork. Generally this includes any warranties for the car and all of its components for example tires, battery, CD player, etc. Also keep careful records of all paperwork relating to financing and sale of the vehicle. Financing paperwork deserves special attention. Make sure that it includes rates, terms, and the total cost of the loan or lease.
Brochures are available from the BBB: "Buying a New Car" or "Buying a Used Car." Ask for your free copy.
