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What You Should Know When You Buy A Used Car
by Fraser Wheelock
http://www.fwcar.com

My dad used to refer to buying a used car as 'buying
someone else's headaches'. There's a good deal of truth to
his statement. When you buy a used car, you're purchasing
a car that has been used, and quite possibly abused, by
one or more owners. It may have mechanical problems, or
just be showing its age.

Until 1975, consumers had little recourse if they purchased
a 'lemon'. There were no laws governing what warranties and
disclosures a dealer had to make when selling a car. With
the passing of the Magnuson-Moss Warranty Act, consumers
gained a powerful tool to help them be certain that the car
they were buying would actually run once they drove it off
the lot.

Disclosures
Any used car dealer that sells more than six vehicles per
year is bound by law to make particular disclosures. These
include all major mechanical systems; any problems that may
be specific to the make and model of the vehicle; any
recalls by the manufacturer; whether the car is being sold
with a warranty or as is.

- the price of the car
- how much cash you're putting down
- the amount that you're financing
- the finance charge (how much interest you'll pay)
- the APR (annual percentage rate)
- the length of the loan term (in months or payments)
- the amount of payments
- the total sales price

2. Check the dealer's return policy.
Contrary to popular opinion, there is no 'cooling-off
period' required by law in used car sales. Even so, many
used car dealers do have a return policy that allows you
to return a used car purchased from them within a few days
if you change your mind. Check with the dealer on his
return policy rather than assuming.

Dealer Financing
Dealer financing takes a number of forms. Some dealers,
especially those who cater to lower income markets with
poor or little credit may actually provide their own
financing on the lot. The 'buy here pay here' dealers can
be a convenient option when your credit isn't good enough
to get a regular loan, but you need the car now. Be aware
that you're very likely to pay a far higher interest rate
than with a conventional loan. If you have no other options
though, it can put you behind the wheel when you need the
car.

Most dealers arrange financing through a bank or finance
company. Since the vehicle serves as collateral, a car loan
acquired that way is often easier to get than one through a
conventional bank. If your credit is impeccable, though,
arranging your own financing as above could save you money
in the long run.

Private sellers do not need to post a Buyers Guide, nor do
dealers who sell less than six cars per year. The Buyers
Guide should tell you if there is a warranty and what kind
of warranty it is. If you negotiate with a dealer for
coverage not listed on the Buyers' Guide, make sure that he
adds a note to the Buyers' Guide. In the event that the
contract you sign and the Buyers' Guide differ, the
conditions set out in the Buyers' Guide take precedence.

Read the Buyer's Guide carefully so that you know exactly
what you are buying and what you are paying for it. If the
dealer agrees to terms that are different than those on the
Buyer's Guide, insist that those conditions be noted on the
Buyer's Guide. By law, in the event of a dispute in which
the terms of a contract are different than the terms on the
Buyer's Guide, the Buyer's Guide generally takes
precedence.

By knowing your rights and taking steps to protect them
when buying a used car, you can avoid buying 'someone
else's headache' and end up with a gem instead of a lemon.

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