Category: Buying A Car

Am I allowed to take the Retail Installment Sales Contract home with me before signing it, especially if I don't understand everything in it?

9/19/2018

Yes, you are allowed and, of course, you should never sign any contract you do not fully understand. The Truth-in-Lending Act and its regulations require a creditor to make the required disclosures “clearly and conspicuously in writing, in a form that the consumer may keep”.

Those disclosures include the Annual Percentage Rate, the amount financed (the amount of the credit being extended or money being loaned), the finance charge (how much interest you are paying back), the total of the payments, and the total amount paid (payments plus down payment).

Taking the contract home before you sign it is a great idea. This allows you step back, away from the pressure of the salesman and his boss, and examine whether the deal is good for you, such as whether you can afford the payments. Second, you can determine what other costs may be incurred like property taxes (not the same as sales tax) and higher insurance expenses. You may decide the monthly expense is too high. Third, you can shop the interest rate to see if you can get a better deal. Fourth, if there are any terms you don’t understand, you can find someone to explain them to you.

The Retail Installment Sales Contract is going to state there is no “cooling off” period so take your time. There really isn’t a rush to buy a car.

What happens to vehicles involved in floods and how to avoid buying one

9/8/2018

During hurricane season, it’s common to see news footage of cars getting washed away by storms. But few people understand what really happens to those flooded cars once the owners get them back.

While cars seem pretty strong and sturdy, they are basically just large electronics – especially if they’re newer models. And you know what happens if you throw a TV into a pool – there’s little that can be done to salvage it, and even if you can fix it, it’ll never run as well. A lot of cars that get damaged in floods will end up totaled, and about half of them will get re-sold on the market through salvage auctions, which means a lot of people have no idea they might be purchasing a used car that was previously in a flood.

So how can you avoid purchasing a vehicle that was involved in a flood? First, make sure to track down the car’s Vehicle Identification Number, which is on the dashboard and title. There are many databases such as National Motor Vehicle Title Information System and VINcheck that allow you to look up a vehicle’s VIN to see where it’s been. Some cars do slip through the cracks thanks to state-by-state inconsistencies in salvaged vehicle branding so it’s important to look for other telltale signs.

When looking at cars, buyers should first and foremost check for caked-on mud or any kind of peculiar odors in the carpets and other difficult-to-clean places. The headlights may also feature a visible water line on their lens, which is a major giveaway that the vehicle is flood-damaged. Another big clue is rust, especially in screws under the dashboard.

While states have certainly made moves to protect consumers from unsuspectingly purchasing flood-damaged vehicles, there’s always a risk when it comes to buying used cars and a smart buyer will know to keep an eye out for suspicious signs.

Is A Voice-Controlled Co-driver Right for You?

8/10/2018

Voice-controlled co-drivers are the latest innovation to hit the auto market in response to voice automated technology. An interactive voice-controlled co-driver can set GPS directions, locate the nearest coffee shop or other restaurant choice, pinpoint the next rest area, and much more.

Similar to Amazon's Alexa, these features give you the convenience of a smart phone without having to touch or look at a screen. Since the Insurance Institute for Highway Safety, Highway Loss Data Institute (IIHS) states 94 percent of car crashes are caused by distracted driving, a voice-controlled assistant sounds perfect. But there are a couple of instances where you might want to reconsider this feature, or, at the very least, be prepared to overcome some challenges.

If you're not technologically savvy, this may not be for you. You have to program the feature before you start, and there is a learning curve. If you have difficulty with Alexa or other voice-activated features around your house, you might want to reconsider utilizing the voice control feature.

If you have a thick accent, you may have to forego a voice-controlled co-driver. While the units are programmed to understand over a hundred languages, if you speak English as a second or third language, the system may not be able to recognize your accent. The same goes for rural or regional accents which would cause you to be misunderstood. The frustration might be more time-consuming than it’s worth.

But if you fall into one of these categories and love the idea of voice control, you don't have to discard the idea of a co-driver altogether. Improvements are being made every year, and you can take steps to embrace this new technology. In the meantime, if you’re determined to use this feature now, you can always ask your dealer or a friend to help you set up your system, and you can ask your car dealer to let you try a system to see if it understands your accent. This will enable you to make a better purchase.

It's estimated 67 million voice-assisted devices will be in use in the United States alone by 2019. So despite some obstacles, you can still let your voice be heard.

What should I do if I'm blocked in and feeling pressured to buy a car?

7/24/2018

When I started practicing, I heard about car dealers wanting to appraise someone’s trade in. When the dealer got the keys to the car, he would throw the keys on the roof [DC1] of the dealership. The idea was to make the customer feel helpless to the point he felt he had to buy a car.

In a yo-yo transaction, the dealer will require the return of the car if it cannot sell the retail installment sales contract. If a customer comes back to discuss the matter, the dealer may try to block in the car to keep the customer from leaving with it. In this situation, remember, the dealer may be the wrong doer.

Do not become the wrong doer. Don’t start yelling, throwing punches, or damaging cars. The first thing you could do is politely request that the dealership move the cars blocking you. If that does not work, move up the chain to a higher manager. If that does not work, keep moving up until you get to the general manager. I would expect all the managers to support their employees; however, you don’t know until you ask.

The next step might be to call the police. Understand that the police usually do not want to get involved in what they call “civil” matters; however, taking your property might be considered a theft. Hopefully, the introduction of the police will cause the dealer to do the right thing, but it is not guaranteed. If you still can’t get your car, you need to leave and contact a lawyer.

How do green cars work, and are they worth the price?

7/12/2018

It wasn’t so long ago that “green” cars were still a novelty. Now, you probably see several of them every day. It’s not really fair to lump environmentally-friendly cars into one category – there’s such a variety. You can purchase a battery-powered electric vehicle, a hybrid vehicle that uses both battery power and gasoline, compressed air vehicles, and even natural gas vehicles. While it may seem overwhelming to navigate through all the information that exists on these cars, it can be extremely worthwhile – eco-friendly cars can get a fuel-economy of up to 650 miles per gallon (or the equivalent for non-gas vehicles). Remember that old Ford sedan you drove ten years ago that got twelve miles per gallon if you were lucky? This isn’t that.

Less fuel means more money left over in your pocket, which is a good thing considering these cars don’t come cheap. In the lower- to mid-range, you can pick up something like a 2017 Hyundai Ioniq EV for about $29,500, and on the high-end, there are cars like the all-electric BMW i3 ($44,450) and Tesla Roadster ($200,000+). If you’re not a big spender looking for a luxury vehicle, you can expect to pay about $30,000. Because these cars are much better for the environment, many states offer generous tax credits to people who buy them – so you can expect to get about $2,500 to $7,500 back that way. In the long run, you’ll probably pay as much as you would for a gasoline-powered vehicle, but at least you’ll do less damage to the environment.

Do you drive a clean energy vehicle? How much did you pay, and did it save you money long term?

The Top 5 safest cars and why

6/4/2018

When ranking cars for safety, the advantage goes to those who enjoy a higher income because the safest cars are ranked as luxury vehicles. This conclusion was reached by US News and World Report when they combined the Insurance Institute for Highway Safety’s rankings for vehicles by size in their tests for and the test crashes from the National Highway Traffic Safety Administration (NHTSA). The following list is two parts: the safest cars in each category as well as the safest new cars on the road.

From IIHS Safety Ratings:

Small cars: 2018 Chevrolet Volt with optional front crash prevention
Midsize cars: 2018 Honda Accord with specific headlights
Large cars: 2018 Kia Cadenza with optional front crash prevention and specific headlights
Small SUVs: 2018 Honda CR-V with optional front crash prevention and specific headlights
Midsize SUVs: 2018 Honda Pilot with optional front crash prevention and specific headlights

From US News and World Report's combined IIHS and NHSTA Rankings:

2018 Genesis G80 Hyundai midsize sedan
2018 Genesis G90 Hyundai luxury sedan
2018 Lincoln Continental all-wheel-drive large sedan
2018 Mercedes-Benz E-Class luxury midsize car
2018 Santa Fe / Santa Fe Sport Hyundai SUV

How does this help you if you're in the market for a new car or SUV? It gives you some guidelines of what to look for in regards to vehicle safety. If you can afford a luxury vehicle, check the safety ratings before choosing a vehicle on looks and amenities alone. The same goes if you can't afford to pay over $40,000 for a new car. Don't buy just because of dealer incentives or gas economy. Investigate the overall safety features as well as the national test rankings when you're choosing your new vehicle to ensure you have the safest ride possible.

If A Car I Buy is defective, can i return it within 72 hours?

5/29/2018

In another post, I wrote that you do not have 72 hours to return a car. If nothing is wrong with the car, that is generally true; however, if the car is nonconforming, which means it is not operating as it should be, you may be able to return it. The legal concept is called revocation of acceptance. To return the car, the problem with the car must substantially impair the value of the car to you if 1) you accepted the car knowing about the problem but were assured by the dealer that the problem would be fixed, and it was not or 2) you accepted the car without knowing about the problem because it was too hard to discover the problem, or the seller assured you nothing was wrong with it.

If the car is nonconforming, you must tell the dealer about it within a reasonable time. A “reasonable time” is not defined. It will depend on your circumstances so don’t wait. Tell the dealer you want your money back as soon as you can because the Court does not stop the clock, “time”, until you tell the dealer there is a problem with the car. Putting it in writing is even better. Keep a copy for your records. You must also tell the dealer about the problem before there is a “substantial change” in the car. There are plenty of things that could be a “substantial change” in a car. Think of it this way. You may not be able to return the car if you wreck it so don’t wait.

Remember this is not legal advice. There are lots of scenarios that can change how to approach this situation. Sit down with an attorney to discuss your options and how your situation fits with the law.

Podcast Guest/The Car Chick

5/24/2018

I was a guest on the podcast by The Car Chick (which is all about car knowledge for women and smart men) recently where we talked about the lemon law, what it means, and more. You can find more podcasts and much more information at www.whoisthecarchick.com.

Does a Carfax tell You Everything You Need to Know Before You Buy a Car?

3/29/2018

CarFax is the leading company in used car record tracking and is often publicized as a promotional tool to prove the soundness of a used vehicle. While CarFax claims to compile over 100,000 sources to document each car's history, you should consider it a tool rather than a final answer when you're in the process of buying a used vehicle.

Importance
CarFax compiles records from a wide range of sources that track Vehicle Identification Numbers (VIN), odometer readings, and accidents among other statistics. That means you'll have access to some title transfers, odometer readings, reported accidents, and manufacturer recalls concerning the vehicle in question.

Do You Need More Information?
You should have any used vehicle inspected and driven by a trusted mechanic before you buy. It's also a good idea to have the seller provide you with a written statement outlining the condition of the car and detailing any damages it may have.

What Might be Missed?
A CarFax report is only as good as its sources, and therein lies the problem. If a vehicle was in an accident that wasn't reported to police, it won't show up. Furthermore, if it was reported and the police department doesn’t provide reports to Carfax, you won't get the accident information. If the vehicle was in an accident or flood and was repaired by a mechanic or body shop that doesn't report to CarFax, you won't learn that information. In addition, insurance companies do not provide reports to Carfax. These are only a few examples, so if you have a question about your vehicle's condition, ask.

Why Use CarFax if not All Information is Reported?
Although CarFax may not cover every angle of a vehicle history, it is a valuable tool when buying a used car. Here are some key benefits you'll find on a CarFax report:

The Safety and Reliability section combines information from the Insurance Institute for Highway Safety, the Highway Loss Data Institute, and the National Highway Transportation Safety Administration and outlines the average cost for repairs of the vehicle make and model. The reliability section lists potentially expensive issues the model may be prone to as well as the average cost of ownership and the average risk of injuries and accidents.
CarFax lists the type of owner the vehicle has had. This can alert you to a former leased or rental vehicle and, combined with the odometer reading, can give you an idea of the type of use the vehicle has seen. A low odometer reading can tell you to be on the alert for low mileage driving issues.
The Owned in the Following States section can be a red flag. If the vehicle has been relocated several times in a short period of time, it may have been salvaged in one state, repaired in another, and sold in a third to avoid detection.
The Frame Damage Check means the vehicle was in a wreck so you should have the frame checked by your own mechanic for unrepaired damage.
If the Airbag Deployment Check is positive, it means the car has been in a wreck where the airbag deployed. Make sure the airbag was replaced.

What Can You do if You have an Issue?
CarFax guarantees a clean title on its report, but make sure you read the fine print. Register the car with CarFax if you buy it and be aware the guarantee is very specific.

If you suspect you've purchased a car that's been damaged without disclosure, it's important to get legal representation. Consumer laws are made to protect unsuspecting car buyers from fraud, and you may have a valid case.

wHEN DOES A CAR DEALERSHIP START LYING TO YOU?

2/21/2017

It might start as soon as you click on the dealer’s website. I was working on a case the other day. I clicked on a dealer’s website. Up popped a dialog box.

“Hello, my name is Alexis. Have a question? I’m online.” Besides sounding like a 1-900 sex oriented ad, when I looked on the staff page, Alexis was no where to be found. I found the picture of the Internet Manager. “He” didn’t look anything like “Alexis’” picture. I felt like I was being “catfished”. What does that say about the ethics of a car dealer? Does it even make a difference to you?

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