ARM YOURSELF WITH INFORMATION

ARM YOURSELF WITH INFORMATION
How to avoid scams and overcharges when you buy a car.

CAR PRICES

·Check the CONSUMER REPORTS website, at http://www.consumerreports.org/. Or go to a bookstore or library and look at Consumer Reports Car Buying Guide.

·Ask your bank, credit union, or library to show you the KELLY BLUE BOOK, or go to http://www.kbb.com/.

·COMPARISON SHOP by checking prices in newspaper classified ads.

FINANCING

·KNOW YOUR CREDIT SCORE GOING IN. Ask about your credit score at your bank or credit union, or go online at http://www.e-loan.com/.

·LINE UP FINANCING BEFORE YOU BUY A CAR. Ask an online lender, bank or credit union to pre-qualify you for a loan. You can usually get a better deal from a credit union or bank than a dealership. Or go online at http://www.e-loan.com/.

·If you must finance through the dealer, ASK FOR A COPY OF THE "TRUTH-IN-LENDING" STATEMENT. By federal law, dealerships and financiers are required to give you a copy, even before you sign. If they won't give you a copy to take home and study, that's a sign they're hiding something.

·SHOP AROUND at banks and tell them you're comparing where you can get the best deal. When one lender quotes a rate, call others and see if they can beat it.

ADD-ONS

·Dealers want to sell you all kinds of extras: credit insurance, undercoating, security systems, etc. These are almost always overpriced—and often virtually worthless. If you really need these items, you can usually get them much cheaper elsewhere.

PROTECT YOURSELF

·DON'T JUST NEGOTIATE THE MONTHLY PAYMENTS. If salespeople or loan officers can get you locked into a monthly payment, it allows them to steer you into a deal with high interest and lots of add-ons. Negotiate everything: Interest rate, extras, total amount financed, etc.

·READ EVERY DOCUMENT THOROUGHLY. Don't sign anything until you've had a chance to think about things overnight or longer.

·DON'T BE RUSHED INTO ANYTHING. If a dealership is trying to rush you, that's a sign the deal's a rip-off.

·Even if you have weak credit or little money, you have a right to be treated honestly and fairly. PROTECT YOURSELF, STAND UP FOR YOUR RIGHTS, AND BE PREPARED TO WALK OUT THE DOOR IF A DEAL DOESN'T SMELL RIGHT.

·For more information about car rip-offs, go to: