Tire insurance. Dealer fees. VIN etching. Fabric guard

Tag : Fabric Buyer

Whether you're considering buying used or new, from a largedealership or a small-time corner lot, here's some advice tofollow.

CHOOSING THE RIGHT CAR
• Determine what you need: Put your wants on the back-burner and be honest with yourself. Doyou need a luxury pick-up? Third-row seating? 17-inch wheels?Compensate for this pragmatism by splurging on reliability. In thelong run, a reliable car will save you money and aggravation.
• Consider year-old models: Don't shun last-year's models. New cars depreciate the minute youdrive off the lot. A used, year-or-two-old car with low mileage isunlikely to give you any more trouble than one fresh from thefactory. And, every now and then, there's that car with zero milesthat has waited a year or more for a buyer; take it off thedealer's hands and net yourself a steep discount.

THE MONEY PART
• Do the math: Figure out how much of your monthly budget you can part with, andleave a little room for insurance. Once you get a figure, play withonline loan calculators (try Cars.com , Bankrate.com ) to see what price range you should realistically aim for.
• Price it out: Gauge what the model you like is worth. Check the Kelley Blue Book( www.kbb.com ), NADA ( www.nadaguides.com ) or Edmunds.com , and determine the local going price by comparing prices fromprivate sellers and local dealerships.
• Compare insurance costs: Premiums for different models in the same category can varyvastly, depending on how expensive they are to repair, how popularthey are with thieves, what kind of driver is drawn to them, etc.Some used models even retain surprisingly high insurance costs overthe years.
Plenty of websites will give you personalized insurance estimatesbut only after asking for personal information and looking up yourcredit history. This will prompt every agent in town to beginmailing you solicitations. If you already carry auto insurance foranother vehicle, your current insurer should be able to give youquotes on models you're considering without pulling your creditrecord.
Otherwise, only Allstate ( www.Allstate.com ) offers "ballpark'' estimates without requiring any identifyinginformation. Give it a whirl; it'll provide you an idea of howdifferent models compare in insurance costs, all else being equal.
• Shop for financing: Dealerships are eager to sell car loans, but their rates arerarely better than those offered by credit unions or banks.
Here's how to shop for a loan:
Ideally, you already keep tabs on your credit rating; if you don't,start now. Get credit reports from the three main reportingagencies -- Experian, Equifax and TransUnion; U.S. consumers areentitled to one free report per year, which must be obtainedthrough www.AnnualCreditReport.com or 877-322-8228. Check for errors and get them corrected (alengthy process). Then, get your credit (or FICO) scores, the mainfactor in determining which interest rate you'll qualify for(you'll be charged for this).
Get on the phone or visit different banks or credit unions inperson and ask what kind of rate you'd likely get with your score.Don't let anyone request your credit history or score from thecredit bureaus until you're reasonably certain you've found thebest loan; each time a lender seeks your credit information, itplaces an "inquiry'' on your credit report, a negative mark thatcan bring down your score -- and, thus, raise the rates you'reoffered.
Having the loan ready before you find the car gives you thenegotiating power of cash. It gives you an instant bargaining advantage and circumventssalesmen's attempts to divert attention from the bottom line andensnare you in a sales pitch that focuses on the monthly payment.
Exceptions to the rule: For college students and people with littleor bad credit, financing through a dealership can be helpful. Ofcourse, you don't want to advertise your situation, as that makesyou a good target for bad rates. But if dealer-financing is theonly way you'll be approved for a car loan, read on.

AT THE DEALERSHIP
• Avoid vultures: Some dealerships have so many salesmen around that competition tonet a sale is cut-throat. If you're greeted by a swarm of menwearing ties, shift into reverse and flee, never to return.
• Don't wait around: Conversely, if you have to wait 10 minutes to be helped, go home.Some dealerships strive to exhaust customers so they're seeingdouble by the time they sign the papers.
• Hold your ground: Don't be swayed to look at models you're simply not interested inbecause the salesman wants you to. Stay focused, stick to themission and, if you don't feel comfortable with the situation,leave.
• Focus on the bottom line: While you're browsing, don't discuss financing. Assuming youalready have financing set up, you have the upper hand and cannegotiate as if you were paying in cash.
• If you're seeking dealer-financing: Ask to see your "buy'' rate, the interest rate for which you wereactually approved. Dealers can legally tack up to three percentextra on that rate. If they refuse to show you the buy rate,l-e-a-v-e.
• Read the fine print: Important! Don't sign anything until you've read it thoroughly. Take copies of the sales papers home, get out a dictionary andscour the documents with a magnifying glass, if you must. There'sno such thing as "now or never."
• Watch out for add-ons: Tire insurance. Dealer fees. VIN etching. Fabric guard. Dealerswill sell you all kinds of extras and accessories you don't need orcould purchase for a lot less elsewhere. Built-in GPS navigationsystems, for instance, are often more expensive than portable onesfrom a big-box store and may require costly updates the othersdon't.
What you don't want to skimp on is safety : Anti-lock brakes, airbags and anti-theft devices, for example,will protect you and your car, and bring insurance discounts.
• Research the warranty: If the car you like comes with a warranty, find out if thewarranty company is reputable; call the state Attorney General'soffice (866-966-7226) and the Department of Financial Services(800-342-2762) to ask if they have had complaints.
• Ask to see the title: If you're buying used, this is of utmost importance. Compare thevehicle identification number to make sure it corresponds to thecar you're purchasing. The VIN is on the driver's side of thedashboard, under the windshield.
• When you find the one: Take the car to a trusted mechanic to have it checked out. He'llbe able to tell you whether she's worth the money or not. For theroughly $50 it'll run you, you'll save yourself a world of trouble.

THE LEMON LAW
Florida's Lemon Law applies only to cars bought or leased new. Ifyour new car has been to the mechanic three times for the samerepair or spent 15 consecutive days in the shop, it will probablyqualify as a lemon and, thus, state mediation. For details, visitthe state Department of Agriculture and Consumer Services at www.800helpfla.com/lemonlaw.html or call 800-321-5366, toll-free. The Attorney General's officeenforces the Deceptive and Unfair Trade Practices Act; for moreinformation, go to http://myfloridalegal.com or call the AG's Fraud Hotline at 866-966-7226.