The Federal Trade Commission’s Used Car Rule
requires dealers to post a Buyers Guide in every used
car they offer for sale. The Buyers Guide gives a
great deal of information, including:
whether the vehicle is being sold "as
is" or with a warranty;
what percentage of the repair costs a
dealer will pay under the warranty;
the fact that spoken promises are difficult
to enforce; and
the major mechanical and electrical systems
on the car, including some of the major
problems you should look out for.
The Buyers Guide also tells you to:
get all promises in writing;
keep the Buyers Guide for reference
after the sale; and
ask to have the car inspected by
an independent mechanic before the purchase.
Buying
a car from a private individual is different from buying
from a dealer. That’s because private sales generally
aren’t covered by the Used Car Rule, or by "implied
warranties" of state law. A private sale probably
will be "as is"—you’ll have to
pay for anything that goes wrong after the sale.
Before
You Buy...
Whether you buy a used car from a dealer or an individual:
examine the car using an inspection
checklist. You can find checklists in magazines
and books and on Internet sites that deal with used
cars;
t est drive the car under varied
road conditions—on hills, highways, and in stop-and-go-traffic;
ask for the car's maintenance
record from the owner, dealer, or repair shop; and
hire a mechanic to inspect the car.
Other
Costs to Consider
There's more to buying a car than just paying for it.
Other items to budget for include insurance, gas, maintenance
and repairs. Here are some tips to help you save money:
Compare coverage and premiums
with several insurance companies. Buy from a low-price,
licensed insurer, or add your teen to your policy.
Some companies offer discounts to students with
good grades. Remind your teenager that it pays to
drive safely and observe speed limits. Traffic violations
can cost money in tickets and higher insurance premiums.
Pump your own gas and use
the octane level your owner's manual specifies.
Keep your car in safe driving
condition. Following the vehicle's maintenance schedule
can help forestall costly repairs.
Look for a mechanic who is certified,
well established, and communicates well about realistic
repair options and costs. Find one who has done
good work for someone you know.
