Looking to buy or lease a new car? Consider these tips before heading to the dealership.
Southfield, MI – January 10, 2011 – With the 23rd North American International Auto Show scheduled to open its doors to the public January 15th, hundreds of thousands of consumers will attend to admire the next generation of vehicles and decide which to buy. With prices averaging more than $28,000.00 for a new vehicle and $15,000.00 for a used vehicle, most consumers will need financing or leasing in order to get that car of their dreams. That is why your Better Business Bureau under a cooperative agreement with the Federal Trade Commission is providing tips to consumers before heading to the dealership and when visiting a dealership.
“A vehicle is one of the most important, and costly purchases consumers make”, said Patrick Bennett, BBB Spokesperson. “Few thrills in life equal that of driving your new car away from a dealer knowing that you bought the best vehicle for you at the best price.”
Before visiting the dealership, the BBB asks consumers to remember to:
· Evaluate your financial situation - Determine how much you can afford to pay each month. A longer-term finance contract may mean smaller monthly payments than a shorter-term finance contract but will result in more money paid over time on your contract.
· Identify your transportation needs.
· Determine the price range of the vehicle your thinking of buying – Check newspaper ads, the Internet, auto buying guides and other publications.
· Understand the value and cost of optional credit insurance if you agree to purchase.
· Know the difference between buying and leasing.
· Know your credit history – Your credit history may affect the finance rate you are able to negotiate. Generally, you’ll be able to get a lower rate if you’ve paid your monthly credit obligations on time.
· Compare – Compare annual percentage rates and financing terms from multiple sources such as a bank, finance company and credit union. This information may also be available from the finance sources’ and vehicle manufacturers’ websites.
When visiting the dealership remember to:
· Stay within the price range that you can afford.
· Negotiate your finance or lease arrangements and terms.
· Consider carefully whether the transaction is best for your budget and transportation needs.
· Understand the value and cost of optional products such as an extended service contract, credit insurance or guaranteed auto protection if you agree to purchase. If you don’t want these products, don’t sign for them.
· Read the contract carefully before you sign. You are obligated once you have signed a contract.
· After you have completed the vehicle purchase or lease, be aware that if you finance the vehicle, the bank, finance company or credit union holds a lien on the vehicles’ title until you have paid the contract in full.
· Make your payments on time. Late or missed payments incur late fees, appear on your credit report and impact your ability to get credit in the future.
For more advice on purchasing a new vehicle go to http://easternmichigan.bbb.org/consumer-tips-auto/
About Better Business Bureau
The Better Business Bureau Serving Eastern Michigan is a non-profit organization with the purpose of assisting in the protection of consumers and businesses from fraud and unethical business practices in the local marketplace. In addition to its recognized dispute resolution services, BBB maintains reliability reports on the customer service history of more than 80,000 local businesses and provides consumer education materials on numerous topics. BBB provides its services free to the public and its service territory stretches across Eastern Michigan from Ann Arbor through Metropolitan Detroit, Lansing, Flint, upward to Alpena, and covers the entire Upper Peninsula of the state.
This information is provided under a cooperative agreement between the Better Business Bureau and the U. S. Federal Trade Commission (FTC), which has prepared this information. The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid these practices. To learn more about the FTC and its services, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.