Buying Your New Car

Federal Citizens Information Center

• Check out different vehicles. Several Internet sites can help you compare features and prices on new motor vehicles.
  
  

  Visit www.where-can-I-buy-a-car-online.com for links to these sites. A scorecard reports on the features of each site including whether quotes are free, the availability of financing, and site security. Two magazines offer information in print and online concerning vehicle performance, service and safety: Consumer Reports and Motor Trend.
   

• Test-drive vehicles before you make a final choice.
   
• Research the dealer's price for the car and options. It's easier to get the best price when you know what the dealer paid for a vehicle. The dealer invoice price is available at a number of websites and in printed pricing guides. Consumer Reports offers the wholesale price. Lower than the invoice price, this figure factors in dealer incentives from a manufacturer and is a more accurate estimate of what a dealer is paying for a vehicle.
   
• Find out if the manufacturer is offering rebates that will lower the cost. Two websites that offer this information are www.carsdirect.com and www.autopedia.com/html/Rebate.html.
   
• Get price quotes from several dealers. Find out if the amounts quoted are the prices before or after the rebates are deducted.
   
• Avoid high-profit, low-value extras such as credit insurance, extended service contracts, auto club memberships, rust proofing, and upholstery finishes. You do not have to purchase credit insurance in order to get a loan.
   

Your Rights: Secret Warranties and Lemon Laws

On occasion, a company makes a mistake in the manufacturing of a motor vehicle. If dealers report a number of complaints about a certain part or vehicle, the maker may allow dealers to repair the problem at no cost to the customer even if the warranty has expired. A service bulletin notifies the dealer of the problem and how to resolve it. Because these free repairs are not publicized, they are called "secret warranties". Some states have passed laws requiring vehicle owners be notified of secret warranties.

Sometimes vehicles have problems that just never seem to get fixed. States with new vehicle "lemon laws" help protect consumers by requiring a refund or replacement if a substantial problem is not fixed within a reasonable number of attempts or if the vehicle has been out of service for a certain number of days. If you believe your car is a lemon:

• give the dealer a list of symptoms every time you bring it in for repairs;
• get and keep copies of the repair orders showing the reported problems, the repairs performed, and the dates that the car was in the shop; and
• contact the auto manufacturer, as well as the dealer, to report the problem. Your owner's manual will list an address for the manufacturer.

Service bulletins from many manufacturers are on file with the National Highway Traffic Safety Administration. Visit www.nhtsa.dot.gov to search NHTSA's Service Bulletin database. The Center for Auto Safety (www.autosafety.org) gathers information and complaints concerning safety defects, recalls, and service bulletins. It also has a section on state lemon laws. You can reach CAS by phone at 202-328-7700. Help other consumers avoid purchasing your lemon by registering it at www.safetyforum.com.

Contact your state or local consumer protection office for information on protections you have in your state and the steps you must take to resolve a problem.

Your Rights: Vehicle Repossessions

When you borrow money to buy a car, you should know that the lender:

• can repossess the vehicle if you miss a payment or in some other way violate the contract;
• can repossess with cause without advance notice;
• can insist you pay off the entire loan balance in order to get the repossessed vehicle back;
• can sell the vehicle at auction;
• might be able to sue you for the difference between the vehicle's auction price and what you owe; and
• cannot break into your home or physically threaten someone, in the course of repossession. This is called a "breach of peace."

If you know you're going to be late with a payment, talk to the lender to try to work things out. If the lender agrees to a delay or to modify the contract, be sure you get the agreement in writing. Some states have laws that give consumers additional rights. Contact your state or local consumer protection office for more information.