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BBB Tips on Car Buying
5/9/2005
1 - Always understand that auto buying deals with a product that has a wide variety of pricing formulas. Unlike buying a can of soda or a candy bar, you are purchasing an item that is subject to many add-ons, dealer and factory sales incentives and the like. Before ever considering a visit to a dealership, make sure you have studied one of the many publications that offer information about the base price of a model, the dealer's costs for options and estimated taxes, shipping and transport costs.
Never visit a dealer without having some idea of what kind of car you are seeking, or what the basic price ranges are. If you are merely looking at cars, tell the salesperson UP FRONT that you are not going to be buying that day, and be true to that claim, i.e. have no cash, credit cards, checkbook or financial documents on your person.
You should have your driver's license and proof of insurance, should you decide to test drive a car.
2 - Understand that you will likely be subjected to an intense sales presentation. It is the nature of the business. Beware any dealer who tells you that you MUST make a deal at that time, or that insults you or subjects you to offensive selling tactics. The sales person is a representative of the management of the dealership, and you should be aware that behavior of that kind may be reflected by the owners or managers.
3 - It is always a good idea to have a friend, relative or neighbor along with you to make sure that you are both hearing the same information.
4 - Be careful of the most common scams used on car buyers in this local area, including:
a - "de-horsing" or the use of a "bailment agreement" - this allows you to take possession of a car pending final financing - often you will find the negotiated interest rate or monthly payment will jump and the used car that you traded in has already been sold away.
b - lease agreements disguised as "sales" agreements. There is a clear and distinct difference between a lease and purchase. Never sign blank agreements or just a portion of a document without observing and reading the entire document.
5 - You should take your time before signing ANY document at a dealership. Ask for a quiet place to read and fully understand what you are signing. If you do not understand something, you can always come back at a later time. You may even need to consult with someone with a great deal of car buying experience or even an attorney.
6 - In financing a purchase, the dealer is often going to enter into arrangement that benefits them. If you can arrange financing with your own bank, credit union, or a lendor of your choice ahead of time, you may get a much better deal. You must look beyond the "monthly payment" which most people use as a basis for their budgeting, to what you are really paying for the car, and at what interest rate and for how long. Those points are every bit as important as the amount you will be paying each month.
7 - Understand that the "finance officer" at a dealership may try to sell you additional products or services, even after you have negotiated the price with the salesman. These may include special undercoating, term or life insurance, special credit offers and the like. They are rarely needed and usually only add to the cost of the purchase. Please understand that you can agree to a very good price on a car with the sales person, only to spend literally thousands more in the finance office.
8 - Always check the BBB report on any dealer. Avoid those dealerships with unresolved or unanswered complaints. The BBB reports will also state the nature of the complaints. Just because a dealer has no selling complaints, may not mean that it's record for SERVICE is OK. That can affect your overall car ownership experience.
9 - Understand that there is NO three-day cooling off, or return policy on new car sales. Once you have entered into a purchase agreement, you have bought the vehicle and cannot return it. Even if a sales person makes such a claim, do not be misled. You cannot return the car.
10 - After all is said and done, this should be a pleasurable transaction! You are buying something that is likely only second in cost to your home. Do not be pressured, take your time and research many dealers, and understand that you will have to live with this purchase for a number of years.
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