Car Buying Tips

Page 2

• Education is a key tool to prevent consumer injury. That's what the Federal Trade Commission (FTC) says, Their primary mission is to protect consumers.
• When shopping for a * pre-approved loan, make sure the lender gives your a quote on a fixed rate of interest and not a variable rate that floats up and down as interest rates change.
• Don't sign anything you haven't read or don't understand. If you have to, take it home and read it throughly.
• Never take a car dealers word for granted. Get it in writing signed by the sales manager.
• Be aware, dealers make approximately half of their money through financing for the autos they sell.

• Make sure you have a copy of your auto loan contract that both you and the dealer have signed and be sure that all blanks are filled in. If you finance your vehicle with the car dealership, insert N/A or put a cross through any blanks not applied to you. If information is inserted by someone else after you have signed the contract, you may still be bound to the terms of the contract. Never sign a blank document or a document containing blanks.
• The difference between a car that gets 20 MPG (miles per gallon) and one that gets 30 MPG amounts to 1,500 dollars over 5 years, assuming gas costs 1.50 per gallon and you drive 15,000 miles a year.
• Should you buy this years model or last years model? If you plan to keep the vehicle for only a couple of years, you will probably be better off with this years model. You will pay more for the new model, but 2 or 3 years down the line it will have a substantially higher resale value than last years model. But, if you plan to keep the car 8 or 10 years, then last years model may be a better bet. You will pay a lower price for last years model and 10 years from now the difference in resale value between the new model and last years model will be small. The best decision depends on how much less you can pay for last years model than for this years model and whether this years model has new features that are important to you.
• Be cautious of Buy Here, Pay Here car lots. If you decide to buy a car from a used car lot, be sure to read all of the papers before you sign, and don't sign contracts that allow the dealership to change the finance rate AFTER you leave the lot.

Glossary For This Page
(In Alphabetical Order)

* Pre-Approved Loan
A loan the lender issues to the borrower before buying a vehicle. These loans are usually valid for a limited time only, such as 30 days from the loan approval date. Pre-approved only means that a potential customer has passed a preliminary credit information screening. Neither a pre-approved nor a pre-qualified are seen as absolute loan commitments. To give yourself the negotiating advantage, always get a pre-approved loan. Have a pre-approved loan check draft with you when you walk into a dealership. Having a pre-approved loan gives you the negotiating power of a cash buyer who the dealer views as ready to buy the right auto at the right price.

Page 1 - Car Buying Tips
Page 2 - Car Buying Tips
Page 3 - Car Buying Tips

SCAMS & FRAUD
Some Scams, Fraud, and Consumer Abuse Items in the News

Federal Laws
Major Laws That Govern Financial Institutions & Protect Individuals in Their Financial Dealings

Organizations

Consumer Info

Miscellaneous

Copyright &
Disclaimer Info
© Loanfactz.com
2004/2008