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How to buy used car at a fair price

Tips for buying a used car at a fair price

Buying a used car is not an easy thing to do. Following car-buying tips should help you buy the best used car for a fair price.

BEFORE GOING TO THE DEALER

  • Ask friends and relatives what dealers they recommend.
  • Check to see if there have been any complaints against the dealer you use.
  • Check the current interest rate for used car loans at a bank.
  • Go to used car websites to determine the fair market value.
  • Arrange to have a mechanic check the car at the dealership. It is worth the money to know the car is in good working condition.
  • Beware the “bait and switch” tactics, where the dealer advertises a “bargain” but then discourages you and switches you to a more expensive car.

AT THE DEALER

  • Check the odometer in the car against the written mileage certificate. The numbers should match and the mileage should register when you test drive the vehicle.
  • Note the repairs that must be made on the purchase order prior to taking delivery of the car.
  • Make sure the repairs have been completed satisfactorily before you sign anything.
  • Write into the contract that the deposit is refundable if the repairs are not made, or special conditions not met.
  • Ask the dealer questions until his answers are satisfactory. If you are not satisfied, do some more research and do not sign anything.
  • Watch out for “AS IS” clauses when you purchase the car. In this instance, the buyer assumes responsibility for everything.
  • Read the contract thoroughly paying particular attention to the warranty. You can negotiate the warranty. Under federal law, warranty information must be disclosed prior to sale by a window sticker.

FINANCING

  • Check the itemized financing statement from the dealer, especially the interest rate and the final cost to you.
  • DO NOT sign a contract or power of attorney to anyone before you are ready to accept delivery on your new, used car.
  • Think about it for 24 hours.
  • Check to see if you can obtain better financing from a credit union, a savings & loan, or your neighborhood bank.
  • DO NOT obtain financing from a finance company that charges high interest rates. You will pay too much for the loan.
  • DO NOT sign anything until you are ready to accept delivery of the vehicle.

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