Most folks are always looking for ways to save money when purchasing a vehicle. This is why the option to buy a newer used car is a good one. Depending upon your needs, you may discover that a used car is a better option for you than a brand new one. This tends to work out well for individuals that want to spend less and for individuals that are looking for a practical means of transportation. Warranties are a great thing for dealerships to offer, but when offered on a new car they appear more attractive. It’s important that you educate yourself so that you don’t fall prey to dealer fraud.Are Warranties Optional?
While a few dealerships offer limited warranties on new cars most of the time warranties are optional. If you are buying a car from a private seller keep in mind that they won’t offer a warranty and they are not required to do so. When a dealer wishes to avoid warranties, simply put the sign added is “as is” or “with all faults”. The dealer may offer a limited warranty that they create, and you’ll find that there is usually a manufacturer’s warranty on the vehicle for a limited time only. Service contracts may also be offered which cover additional service to the vehicle beyond any warranty given on the vehicle.What is an Implied Warranty?
Unless you purchase a vehicle from a private seller there are two warranties that are considered “implied”. This means that the car is considered roadworthy and is reasonably safe to drive. This also means that if you have mentioned to the dealer that you intend to use the vehicle for a particular purpose that the car is safe for that as well.Financing Your Vehicle
Most buyers have a need for financing their vehicle. This means an additional cost to the buyer. The financing can be done through the dealer’s bank, the buyer’s bank or credit union, or other finance companies when warranted. As a buyer you should have certain documents you review and sign before you make a purchase. The Truth in Lending Act assures that you should see certain disclosures before you sign any papers. For example, you should know the total price you are paying for the car, the APR (total cost over the life of the loan), and any additional fees incurred (including the tax on the car), number of payments and more.
Dealers can be sued for fraud. Many dealers have been sued for rolling back the odometer on the vehicle. Any dealer that has nothing to hide should allow you to take the vehicle to be looked over by your own mechanic so that you feel confident about the purchase you are making. If you believe that you being defrauded by a dealer, you may want to consult with a lawyer to learn what your options are.