Buying Quick Tips

• Check your credit score before you shop! Your score is the major factor in what loan terms you can get. The lower your credit score, the more money you will be paying in interest rates; the higher your credit score, the better your loan terms will be. You can check your credit score and report online. Review your credit report before the dealership sees it. Your credit report is available free from www.annualcreditreport.com and your credit score is available for about $15 from Fair Isaac Corporation** at www.myfico.com. To learn more about credit reports and credit scores, including how to improve them, see Rebuilding Credit.
• Research Sellers. Vehicles are sold through different types of outlets including car dealerships, superstores, and over the Internet. Ask friends and relatives for recommendations. You can contact the consumer protection division of your state Attorney General's Office or your local Better Business Bureau (BBB) to check a particular dealer.
• Know your trade-in value before you shop. Kelly Blue Book, the NADA Used Car Pricing Guide, and Edmunds are all available free on the Internet. Local editions are often available in libraries, banks and bookstores.
• Research non-dealer financing options before you go shopping. Many people use dealer financing because it's convenient-- you buy a car and finance it at the same place. But there's a difference between what dealers 'sell' you and what dealerships 'buy' from the bank. That difference is the dealer's profit and more money you will pay! If you arrange your own financing with a local bank or credit union, the extra effort can mean significant savings for you!
• Be sure you know your cancellation or return rights, if any. In some states, you may have no cooling-off period or cancellation right. In some states, you may have up to three days to change your mind on your purchase. In other states, you would have to buy a cancellation policy and in still other states, once you sign the contract there's no turning back. The safest thing is to ask your seller what its cancellation and return policy is and then have them show you where the policy is written in your contract. It's also good to find out where your state stands on this issue before you buy.
• Take a careful test drive. Drive the car in all ways you normally would drive. Go up hills, enter the freeway, make a controlled emergency stop, etc. to be sure how well the car functions and handles. Don't let music or the salesperson distract you during the test drive.
• If you buy a used vehicle, you MUST get an independent mechanic to give it a thorough inspection BEFORE you purchase it. There is no substitute for this and once you purchase the vehicle it may be too late. It is well worth the mechanic's fee to save you from accidentally buying a lemon! An independent inspection is a good idea even if the vehicle you are trying to purchase has been "certified" by a dealer and is being sold with a warranty. Do NOT rely on the safety inspection of the vehicle alone; safety inspections do not evaluate the mechanical reliability of the vehicle. If the seller will not let you take the vehicle off the premises, look in the yellow pages, Internet, etc. for a mobile vehicle inspector who will come to the vehicle's location.
• Check out the history of used vehicles. You have the right to request the names and history of previous owners. Dealers are required to provide this information to you as a potential buyer. Remember, buying a car "as is" means YOU are responsible for any hidden defects and necessary repairs. Some places to check a car's history are: www.edmunds.com; www.CARFax.com; and www.car-history-reports.com**
• Do not rely on spoken promises. Get all promises in writing. Dealers are required to place the Federal Trade Commission's "Buyer's Guide" in cars that have been previously owned. Any agreement made outside of a Buyer's Guide provided to you must be in writing to protect your rights. To view the Buyer's Guide, go to www.ftc.gov.
• Make sure you read every line on every document and understand what is required of you. Be sure there are no blank spaces. Your signature binds you to every obligation in that contract.