One of the biggest concerns when buying a new or used car is auto fraud.
To protect yourself from buying a lemon and incurring expensive mechanical problem, know the complete history of the car you are purchasing.
Auto Fraud comes in many faces including odometer rollbacks, resale of undisclosed salvaged or flood-damaged vehicles, and switch and bait advertising.
Take these steps to ensure that you will not be a victim of auto fraud:
Have the Car Checked by a Mechanic
If possible, take the car out for a drive on a variety of road conditions including highways, curvy roads, and hills. Test all the features of the car – brakes, steering, air conditioning and heat, and gauges. Stop at a local mechanic to have him look under the hood for any obvious defects.
Finance Through Your Bank
Banks typically offer lower financing than a car dealership. Check with your bank before car shopping to see if they will approve you for financing.
Car dealerships make a profit when they can get you to finance our car through them. By securing a loan from your bank for the amount you can afford to spend, you’ll also be able to set a spending limit when negotiating a price with the car dealership.
Read The Warranty
While the big print on warranties may be enticing, it’s worth the time to read the entire warranty before signing on the dotted line.
Many used car dealers will provide you with a deal warranty, which may state in small print that “wear and tear” is not included in the warranty. Car dealers can then refer to this statement when a mechanical problem arises to get out of covering any problems.
Make sure that you are clear on what the warranty covers and if necessary, ask for more specifics or minor changes to the warranty. Get a signed copy of any amended warranty for your records.
Don’t Rush Into Buying
Avoid impulse buying by standing your ground and not letting a salesman talk to you into a quick purchase. Salesman typically work on commission, and therefore their goal is to make a sale. It will benefit you in the long-run to take your time and research the car and the warranty before purchasing.