Other LanguagesWheels and Deals
| In This Section | |
| Buying New or Used | |
| Choosing a Dealer | |
| Auto Financing | |
| Making the Deal |
Today's students are in constant motion. With insurance rates and gas prices on the rise, young people will soon be shelling out even more to get around. It is important to know your needs and your budget restrictions before you begin the process of buying a car. Here are some general questions you should ask before you begin shopping:
- What kind of driving will I do?
- Who or what will I be transporting?
- What is my monthly budget for car payment, gas, insurance, and maintenance?
- How much car can I really afford?
Being savvy consumers in the area of cars and transportation will definitely save you a pretty penny, but it can also keep you from falling victim to common scams. There are several misleading advertising tactics and financing schemes 0f which you should be aware; visit the AG's Buying Precautions webpage to get a full run down on the latest auto scams!
| Fast Fact: | |
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Did you know that there are protections for owners of NEW cars that are experiencing substantial and continuing problems with warranty repairs? The Washington State Lemon Law is administered by the Attorney General's Office and provides assistance to new car owners that need help working with auto dealers. Click here for more information! |
According to the National Automobile Dealers Association the average price of a new car is over $29,000! While some teenagers can afford to pay this, many must find a less expensive alternative. For most of us, this means buying a used vehicle. In addition to the lower base price, there are many advantages to buying a used car, including:
- A greater variety of cars in your price range can be found in the market
- Insurance generally costs less for an older car than for one that is brand new
- Used car values depreciate less after purchase than a new car would
There are, however, important disadvantages that you must consider as well:
- A used car will generally require more maintenance and repairs than a new car
- Used cars do not often come equipped with a warranty
- The previous owner may have left out important details about the car such as accident history or defects
Deciding whether to buy a new or used vehicle will require a lot of homework! For more detailed information on the ins and outs of buying a vehicle, you may want to visit the expanded Cars section of the Attorney General's website.
In Washington, you can purchase cars from either a licensed dealer or private citizens. If you respond to a classified ad, though, and the seller has several cars for sale but does not have a car lot or showroom, you may be dealing with a “curbstoner.” This is an unlicensed auto dealer that is breaking the law. Under state law, anyone who sells five or more vehicles in a 12 month period must obtain a dealer's license (RCW 46.70.021). Licensing requirements exist to protect buyers from problems such as vehicle title transfer difficulties; buying unregistered, wrecked or rebuilt cars; and purchasing a car with a “rolled-back” odometer. Curbstoners do not become licensed as a dealer and often take advantage of customers while trying to avoid detection from the violations they commit.
Private sellers also often advertise in the classified sections of newspapers. In the case of legitimate private (non-dealer) sales, you should put the purchase and sale agreement in writing. It should include a description of the vehicle, the price, a statement that the seller has clear title to the vehicle and all other representations and promises.
No matter whom you buy from, insist on a thorough test drive and independent mechanical inspection before you negotiate the price and other terms.
Before selecting the car you want to buy it's a wise choice to consider the various payment options. If you decide to finance, be prepared to pay more. Although you may pay less money to obtain your car, typically only a down payment, the total end price will increase due to interest and other costs associated with the financing. Loans are available from several sources, including credit unions, banks, savings and loan institutions, and dealers and it is a good idea to shop for financing options before you visit the dealership.
Remember, you always have the right to:
- Discuss financing prior to selecting a vehice
- Negotiate your finance package separately from the purchase price of the car
- Seek pre-approval from a credit union, bank, and other savings and loan institutions
When financing a car through the dealer, make sure to get these things in writing:
- The price of the vehicle
- The finance charge
- The APR—how much interest will you pay per year? This should be expressed as a percentage
- The number of payments
- How much each payment will be
- The total price of the deal, including interest and finance charges
Before you buy, you should take a few steps to make sure you get the best deal:
- Test-drive more than one vehicle
- Inspect any car you are interested in using the Buyer's Inspection List, which can be found on the Buyer's Guide
- If you find a car that looks right for you, ask to have it inspected by an independent mechanic
- Negotiate. Make an offer that is lower than the amount you are willing to pay, so you have room to bargain
- Get all verbal promises in writing.
Remember, there is no "cooling-off" period for automobile purchases. Once you sign an agreement, you are legally bound, so make sure you read any contract carefully before signing it.