Buying a Car
Learn what to do before buying, leasing, or renting a car.
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Buy a Fresh Car
Whether you are buying or leasing a fresh car, consider these tips to get the best deal and avoid problems:
- Compare car makes and models. Visit the websites of car manufacturers to review the models that interest you.
- Research the dealer`s price (or wholesale price) for the car and options. This information can help you negotiating the final price.
- Find out if the manufacturer is suggesting rebates that will lower the cost.
- Read car advertisements closely. Ads may over promise on the deals, or only apply to a puny group of buyers.
- Get price quotes from several dealers. Find out if the amounts quoted are the prices before or after rebates are deducted.
- Research financing options. Be mindful of “loan packing.”, where a lender presses you to add features and services to your car to increase the amount of your loan.
- Avoid low-value extras such as credit insurance, auto club memberships, extended warranties, rust proofing, and upholstery finishes.
- Get estimates for how much your auto insurance would cost for each model you are considering.
Buy a Used Car
Consider these factor If you are buying a used car from a dealership.
- Contact your state or local consumer protection office to learn your rights when buying a used car.
- Find out from your state motor vehicle department what paperwork you will need to register a vehicle.
- Check prices of similar models with used car guides that you can find online or at your local library.
- Research the vehicle’s history. Ask the seller for details concerning past owners, use, and maintenance. You can also find out whether the car has been bruised in a flood, involved in a crash, had its odometer flipped back, or been labeled a “lemon.” Get the car’s unique vehicle information number (VIN), usually found on the car’s lower left dashboard.
- Research the car’s title history with your state motor vehicle department.
- Find out if the car has any recalls, investigations or complaints searchable online database.
- Verify that mileage disclosures match the car’s odometer reading.
- Check with the manufacturer to verify if the manufacturer’s warranty is still in effect.
- Get and read the seller’s come back policy in writing.
- Have the car probed by your mechanic. Talk to the seller and agree in advance that you’ll pay for the examination if the car passes inspection, but the seller will pay if the mechanic detects significant problems. A qualified mechanic should check the vehicle’s framework, tires, air bags, and undercarriage, as well as the engine.
- Examine dealer documents cautiously. Make sure you are buying–not leasing–the vehicle. Leases use terms such as “balloon payment” and “base mileage” disclosures.
Buying a Car from a Private Holder
You may choose to buy a car directly from an individual, instead of a dealer. The purchase price is often lower and lighter to negotiate if you buy a car from a private holder. You should still take the same steps as if you bought the car from a dealership. There are more factors to consider if you buy from a private possessor.
A private possessor sells the car “as is.” If the car has defects when you buy it, the seller isn’t required to repair them before you purchase it. Also, federal protections and rules, such as FTC’s Buyer’s Guide don’t apply. If the seller is fraudulent, it can be more difficult to resolve the problem. You can’t complain to your local consumer protection office about the seller.
If you choose to purchase a car from a private seller:
- Ask to get service records from the holder.
- Verify that the seller actually wields the car and that the title and registration are in their name.
- Verify that there are no liens against the car, or if it is still under a finance agreement.
- Contact the manufacturer to determine if the manufacturer warranty, or other warranty protection, transfer to you.
- Meet the seller in a public place or busy area, especially if the seller is a someone you don’t know.
Vehicle Financing
Learn about the options available for paying for a vehicle.
Showcase the Movie Transcript
0:00 You know what kind of car you want and you know what you can spend. But don’t
0:05 head to the dealer just yet.
0:07 Before you shop for a car, shop for financing. Financing a car means you pay
0:11 it off over time. But you don’t have to get that financing through a dealer.
0:15 Check with banks, credit unions, and finance companies very first, then take your
0:20 best financing suggest with you to the dealer’s.
0:23 You can still negotiate see if the dealer makes a better suggest,
0:26 but if not, you can stick with the financing you already have.
0:30 If the dealer isn’t fair when it comes to financing a car,
0:33 let the FTC know. Want to know more? Visit ftc.gov/cars
Lease a Car
When you lease, you pay to drive a vehicle wielded by a automobile dealership or leasing company. Monthly lease payments may be lower than loan payments, but at the end of the lease you have no ownership or equity in the car. To get the best deal, go after the advice below.
- Compare leasing versus wielding. The Consumer Leasing Act requires leasing companies to give you information so that you can compare monthly payments and other charges.
- Compare lease offers from numerous dealers. Consider buying from an independent agent rather than a car dealership
- Find out what the down payment, or capitalized cost reduction, is for the lease.
- Calculate the total cost over the life of the lease, and include the down payment. A lease with a higher down payment and low monthly payments may be a better deal for you.
- Ask for details on wear and rip thresholds. Damages that you regard as normal wear and rip could be billed as significant harm at the end of your lease.
- Find out how many miles you can drive in a year. Most leases permit 12,000 to 15,000 miles a year. Expect a charge of ten to twenty five cents for each extra mile driven.
- Check the manufacturer’s warranty. It should cover the entire lease term and the number of miles you are likely to drive.
- Ask the dealer what happens if you give up the car before the end of your lease. You could be responsible for termination fees if you end the lease early.
- Ask what happens if the car is involved in an accident.
- Get all the terms in writing. Everything included with the car should be listed on the lease to avoid being charged for “missing” equipment later.
Car Safety Information
Car Safety Tests
These organizations conduct automobile safety crash tests:
- The National Highway Traffic Safety Administration (NHTSA):
- Conducts fresh vehicle crash tests to determine the protection level for drivers and passengers during front and side-impact crashes.
- Evaluates vehicle restraints such as air bags and safety belts.
- Determines the likelihood of a vehicle rolling over if involved in a single-vehicle crash.
Safety Spectacle Reporting
These organizations report on or provide automobile safety information:
- SaferCar.gov:
- Provides information on how to file a complaint about child safety seats, tires, equipment, and vehicles
- Lists vehicle and equipment defects and recalls – If a vehicle has been recalled, ask your car dealer for proof that the defect has been repaired. Used vehicles should also have a current safety inspection sticker if your state requires one.
- Lists vehicles tooled with Electronic Stability Control (ESC)
Car Rental and Car Sharing Services
Even if you don’t own a car, there are times when you may need one. When you rent a car, you’re using a company’s vehicle for a brief period of time. Use these tips before signing the rental agreement to help you avoid unexpected problems and charges:
- Fees: What is the total cost, after all fees are included? Will there be an airport surcharge or fees for car drop-off, insurance, fuel, mileage, taxes, extra drivers, an underage driver, or equipment rental (for items such as ski racks and car seats)?
- Driving record: Ask whether the rental company checks customers’ driving records when they arrive at the service counter. If there are problems with your driving record, the rental company could turn you away, even if you have a confirmed reservation.
- Insurance: Be sure that you aren’t duplicating coverage. You might have coverage through your private auto insurance policy, a motor club membership, the credit card you used to reserve the rental, or your employer, if you’re traveling on business.
- Damages: Before driving off, inspect the vehicle for dents, scrapes, and marks and check the tires. Report any pre-existing problems and ask the company to note them on your rental agreement. Attempt to comeback the car during regular business hours so you and the rental staff can look at the car together to verify that you didn’t harm it.
- Fuel: Some rental companies, particularly at airports, may require you to refuel within a ten mile radius of the airport or demonstrate a fuel receipt when you come back the car.
- Payment method: Pay with a credit card rather than a debit card to avoid holds on other funds in your checking account.
- Rental deposit: Does the rental company require a deposit? If so, ask for a clear explanation of the deposit refund procedures.
Some state laws cover short-term car and truck rentals. Contact your state or local consumer protection office for information or to file a complaint.
Car Sharing
If you`d rather rent a car on an hourly basis and have greater plasticity in where and when you can pick up a vehicle, you can join a car sharing service. You get the convenience of a car when you need one, without the costs of ownership.
- Fees: What fees does the company charge (annual fees, application fee)? Are they refundable, even if you cancel or are denied membership?
- Availability of cars: Are there cars available at times that you need one? How far in advance do you need to reserve a vehicle?
- Attendants: Are there on-site staff present when you check out your car and come back it? This can be very helpful when you need to verify that the car is returned in the same condition as when you borrowed it.
- Fuel: Do you have to pay for gas out of your own pocket or does the company pay for it?
- Extension of time: How effortless is it to extend the length of your rental? Is it done through an app or is there a dedicated customer service hotline?
- Cancellation: How far in advance must you give notice to cancel a reservation or your membership? And can the company cancel your membership without notification?
- Damages: Are you responsible for damages, even if they were not your fault or they happened after you returned the car? This is especially significant if you comeback the car to a lot that does not have on-site staff.
- Insurance: Is insurance included? You may be insured by a individual policy or the credit card that you use to pay for this service.