These days, many people are choosing to buy a used car rather than a brand new one. A major auto industry think tank found in a recent report that Gen Y perceives used cars as better values and hold their value better. It’s not just about choosing the right car.
It’s not about buying a car; it’s finding the right dealer. The Federal Trade Commission has some suggestions – helpful hints!
Tips on how to deal with both. Here are a few.
1. You can inspect the car and have your mechanic do it. You can do this at any reputable dealer before buying.
2. Test-drive your vehicle under different road conditions before you buy it. Test-drive the vehicle on hills, highways and in stop-and go traffic.
3. Before you purchase, consider the dealer’s track record. Customer testimonials are a sign of a great dealer. Call the Better Business Bureau to see if there are any complaints that have not been resolved. You can also look for their BBB seal and profile on their website.
4. The law does not require dealers to grant used car buyers the right to cancel. Ask the dealer about their return policy before you buy.
5. Make copies of all the things you sign.
6. You should also consider the costs of owning the vehicle. The U.S. Department of Transportation
Transport has information about recalls and gas mileage.
7. Don’t rely on verbal promises. All warranties and promises should be in writing. Also, get a receipt from the dealer for any money that you have paid.
8. Ensure that the dealer or finance company sends your positive payment history to credit reporting agencies. It will help you improve your credit rating (over time), and lower future interest rates.
9. You shouldn’t buy more than you can comfortably afford. Consider how much money you have to put down, what your monthly payment will be, the length of loan and the annual percentage rates (APR).
10. Most used cars are sold with an “As-is” warranty. This means that there is no warranty at all. Ask and be sure to understand the warranty you will receive from a reputable dealership.
Remember the phrase “reputable dealer”. It’s crucial to know this. Dealerships shouldn’t be run like an assembly line that just pushes sales (often choking customers in the process). The best dealerships are those that advise and counsel customers.
Find the perfect vehicle and financing with them.