Consumer Protection Lawyers

Law Office of Arthur L. Weiss, P.C.

Phone: 520.319.9057

Fax: 520.319.9058

E-mail: weiss60@msn.com

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more for car buyers

11. Beware of other junk charges throughout the contract.  These may take the form of environmental protection packages, undercoating and rustproofing, ADP charges (ADP stands for "Additional Dealer Profit."  Get an explanation of each charge and determine whether you benefit from it.  If not, negotiate it away.

 

12. Read the contract.  Even though it is full of legal language you should  read it and ask questions of anything you do not understand.  If the salesman starts sputtering an answer that doesn't make sense this means he does not understand it either.

 

13. Be prepared to walk away.  You must control the transaction at all times.  If you give control to the dealer, you will find your monthly payment is much higher than it should be.  Salesmen and dealer finance guys (and gals) work on commission.  If they are to make money, they need to take it out of your pocket.  If you give them the chance to do so, they will.  If you are uncomfortable with the deal or if they will not negotiate in good faith, get in your car, drive away, and find one who will. 

 

14. Women - Car dealers know that women are less likely to negotiate and that they are uncomfortable haggling over price.  Prove them wrong.  If they want $20,000 offer them $15,000 if they want $3000 offer $1,500.  If they don't negotiate - drive away.

 

15. "What are you looking for in a monthly payment?"  If you tell them you can pay $350 a month, you will end up paying that much and more, regardless of what the payment would or should have been. They do this by a process called "packing."  Turn this question around - find a car and ask them - about how much is the monthly payment on this one?            

 

16. Never, ever tell anyone that your credit is "not so good."  You are simply inviting them to bump up your interest rate to astronomical amounts.  Most people think their credit scores are much lower than they actually are.  Your credit may be perfectly fine, but by suggesting that it is not very good you open a door for the dealer to scald you on the interest rate. And he will.  If your credit is not very good, they will find that out eventually anyway.  Do not volunteer such vital information even if you know it to be true.

 

17. Many dealers work only with subprime credit customers.  These dealers will impose very high interest rates knowing that their customers will not complain.  Prime credit dealers will sometimes place individuals in a subprime category only to get a higher interest rate on the financing.  This happens many times for minorities and women.  Do not fall for this.  If your interest rate is higher than you think it should be ask for an explanation.  A dealer should be prepared to answer some tough questions if your interest rate is above 15%.  Better yet, arrange your own financing.

 

18. If you are buying a used car ask the dealer whether the car is a prior daily rental car or if it has been in a serious accident.  While the dealer does not have to disclose these facts, they must answer honestly if you ask.  So ask, and have the answers written into the contract.

 

19. If you are leasing a car make sure that the full amount of your trade-in is reflected in the transaction.  Leasing is a complicated affair and it is simple for the dealer to eliminate the value of your trade amidst all the numbers that you do not understand anyway.  Remember to negotiate everything and make sure you get full credit for your trade.  This applies to car buying as well as leasing.

 

20. Be very cautious about dealers who finance on site.  They lend to you at VERY high interest rates, figuring that if you cannot make the payment.  As soon as you miss a few payments, they repossess the car and sue you for the money you owe, which will include repossession fees, attorney's fees, court costs, etc.  Go to a reputable institution and apply for a loan for a particular vehicle.  If they turn you down it is a sign that you just cannot afford that car.  Search for something cheaper or save a bigger down payment. 

 

21. DO NOT buy a car where the dealer says: "There is a problem with this car which we will fix - AFTER you have purchased it."  This is a common technique used by dealers to sell their junk cars.  The four wheel drive doesn't work and the dealer promises to fix it next week, but you are supposed to sign the papers today.  Better plan - you come back next week when the four wheel drive is already fixed and then discuss purchasing the vehicle.  Dealers will make any promise necessary to get you into a car - especially the "I will fix it next week" trick.  Do not fall for this one.