CONSUMER ADVISORY
August
2005 By Attorney General Tom Miller
CONSUMER ADVISORY
Tips for Buying a Used Car
The
Attorney General’s Consumer Protection Division receives hundreds of calls and
consumer complaints every year about used car purchases. Follow these tips to avoid unexpected
expense and disappointment:
Shop around. Do
your research. Take your time.
·
Check
out the values of several makes and models in your price range. Most public libraries have vehicle value
guide books available at no charge to look up prices, such as the Kelley Blue
Book or the NADA Used Car Price Guide.
·
Check
with your bank, credit union or other lender whether you qualify for a loan,
and how much you can get. Remember, you
may get a better used-car loan rate from your financial institution than from a
dealer.
When you find a car you like, take
your time, ask questions, and check it out.
·
Test-drive
the vehicle, and take it to your mechanic for inspection. Never buy a car without test-driving it
first, and never buy a car from someone who won’t let you take it to a mechanic
for a pre-sale inspection.
·
Research
the car’s history. For a fee, private
services like Carfax and Autocheck may be able to tell you whether the vehicle
has ever been titled as salvage, flood-damaged, or rebuilt, or if it has ever
had an odometer mileage discrepancy.
·
Check
out the repair history for the make and model.
The spring auto issue of Consumer Reports magazine lists repair
histories for various used-car makes and models. The Internet also has a great deal of information about used
cars.
·
Check
the paperwork on the car before signing a contract to purchase. Examine the odometer and damage disclosure
statements.
·
Offer
a fair price, and focus on the total purchase price. (If you focus only on the monthly payment amount, you may end up
paying more than the car is worth.)
Watch what
you sign -- once you sign a contract to buy, there generally is no
three-day right to cancel. Put any disputes or
other important issues in writing. Be
ready to walk away if you aren’t satisfied with a deal. Be comfortable with your purchase.
To check
out a dealer’s complaint record, call the Attorney General’s Consumer
Protection Division at 515-281-5926 or 888-777-4590 (toll-free).
Consumer Protection
Division Hoover Building Des Moines, Iowa 50319 515/281-5926