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Article:
Car Buying Tips I
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
I am often asked by friends for some car buying tips.
They know that I have been involved as an attorney in
dozens of lawsuits involving car dealers, having
represented car dealers for several years before leaving
an insurance defense firm to form a consumer protection
practice and then having represented dozens of consumers
against car dealers for the last five years.
Most people finance the purchase of cars. It is good to
look at the purchase of a car for a good price and the
financing as two different aspects of the transaction.
Car dealers refer to the profit they make as “front end”
profit or “back end” profit depending on whether it is
profit earned on the increase of the purchase price of
the car over what was paid for it or from financing the
car and selling extras such as credit life, GAP
insurance, warranties or other products. Of course, more
profit in the dealer’s pocket usually means less money
in your pocket.
This article will focus on obtaining a good car at a
good price assuming that you are paying in cash or if
you are paying with a credit union draft or check. Next
week, we will address some tips relating to financing of
cars and avoiding “Yo Yo” sales.
There are many resources you can look to when
determining whether a car being sold is a good value.
Edmunds, Kelley Blue Book, and other resources will
assist you in learning the wholesale and retail value of
cars depending on the options and mileage and Consumer
Reports, can give you further guidance as to the
predicted reliability of a particular make and model.
As a general rule, you should plan ahead of time and
decide what type of car you want and how much you plan
to spend. You should compare the prices of several
dealers before you purchase a car. You should always
look in the paper and online to see if there are any
special deals that may be advertised because often you
have to mention the advertisement to get the discount.
Be aware that dealers are required to tell you extra
charges in advertisements but you will need to read the
fine print. Also, many advertisements are limited to a
stock number represents one particular car which may be
sold early in the morning. When you go in to buy a car,
you should have a number in your mind above which you
are not willing to pay.
As a general rule, you should not buy anything unless
you have road tested it. It is also a good idea to have
a mechanic look over the car before purchasing a used
car and advise as to what repairs need to be made and
the cost of those repairs. Some will do this at very
minimal cost or no cost at all.
You should buy from a dealer with a good reputation. You
should check whether the dealer is a member of the
better business bureau and “google” the dealer online to
see what that turns up.
There are certain questions you should always ask a
dealer about a car you might purchase, particularly for
used cars. Have you sold the car before and if so, why
was it returned? Has the car been damaged in a motor
vehicle accident? Has it undergone any significant
repairs? Is there anything in the history, use or
condition of the vehicle that is important to know
about? Is the car a flood damaged vehicle? Was it ever a
short term rental? Is the car safe to drive? Oftentimes,
the answers to these questions may mean that the
consumer will not want to buy the car or at least want a
significant discount. If the dealer sells new cars of
the same used make you are purchasing, then it can
access the repair history for that car. You should ask
for it.
Experts in the industry generally believe that those in
the industry can spot a car that was previously wrecked
quite easily whereas most consumers cannot. Although I
believe the doctrine of caveat emptor (i.e.,
buyer beware) does not apply to car sales by a dealer to
a consumer, the law is not well settled in this regard,
so it is important to ask these questions. Remember to
get important promises written into the contract
document. Otherwise, there will be a fact question as to
whether those questions were asked and the dealership’s
answers and you will have a hard time relying on the
promises or representations.
It is always a good idea to look at the CarFax reports
which provide some answers to these questions but I have
had several cases where accidents were not on car fax
reports. An alternative is Autocheck.com run by my
friends as Experian. Neither resource is an exhaustive
database. Indeed, I understand that CarFax’s agreement
with various dealers who use these reports admit to that
fact. So these resources can help you spot some problems
but they are not a guarantee.
When you believe you have negotiated a good price, ask
the dealer if that is the price the car is being sold.
If the salesperson says yes, explain that you are
pleased because you are not going to be paying any
closing or administrative fees that some dealers tack on
to the price of the car. If the salesperson responds by
saying that such fees are charged, be prepared to walk
away. Usually if you threaten to do so, the dealer will
say that everyone pays those fees but then agree to
reduce the price of the car before adding the fee back
in to give you the agreed upon price. In my mind, you
have just avoided a bait & switch. Whether you agree
with that characterization or not, you have likely saved
yourself hundreds of dollars. If the dealer insists on
adding these “fees” to the negotiated price, consider
walking away.
When you get ready to sign documents, read everything
before signing any documents. Never sign a contract with
blank spaces. Be sure you read and understand all parts
of your contract. If the car is being sold “as is,”
there is usually no warranty although I have seen this
contradicted with other warranty documents. Selling a
car “as is” does not give a dealer a license to stretch
the truth about a vehicle, but I have had to repeatedly
argue this point to a lot of buy here/pay here dealers.
Again, get those promises and representations in
writing.
If you are financing the vehicle through the dealership,
do not sign a purchase order or “buyer’s order” unless
and until you can agree to financing. Some dealers will
say that you have purchased the car by signing the
buyer’s order even if you don’t agree or cannot agree to
the financing, so wait to see the financing paperwork
before signing any such thing.
If you are buying from a small dealer, it may be a good
idea to check with DMV to ensure that there are no
unpaid liens on the car you are buying. Believe it or
not, consumers do not buy vehicles free and clear of
liens without checking with DMV although I do not know
of anyone who does. Indeed, one of my clients was almost
run over when he objected to a repo agent taking the car
he had recently bought from a defunct car dealer even
though he was current in his payments because the
previous lien had not been satisfied. Although there is
a $25,000 statutory surety bond to help ease the pain,
claimants are usually only paid pennies on the dollar if
a dealer goes defunct.
I hope this article was useful. In my next article, I
will focus on the financing aspects of car sales and
talk about some tricks of the trade.
Disclaimer: The above Article
is intended to give you, the consumer, insight into various legal topics. This
information is not intended as legal advice, but rather helpful topical
information.
 If
you require professional legal services regarding
Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law issues, be proactive in
protecting your legal
rights by seeking the legal advice of
an experienced
Jacksonville criminal defense attorney
& lawyer. Contact
The Law Offices of
Steven M. Fahlgren, P.A.,
by calling
904.845.2255.
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
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