|
LAW NOTES - August 2001
by John Duffy
Clients
come to legal services with questions about cars they have purchased. These
visits usually follow a breakdown or involve problems with the terms of the
sale. Unfortunately, we rarely see clients before they purchase a new or used
car. Individual car buyers can avoid problems by arming themselves with
information and by knowing what questions to ask. This column will provide
consumers with that information so your next vehicle purchase goes smoothly.
First,
consider where to buy your car. Each will provide varying levels of service
and, depending on your situation, some will better suit your situation. The
point to remember is that there are always lots of cars for sale and you are not
necessarily restricted to one type of vendor. If you think the corner car lot
is your only option, consider looking around at dealerships, car rental
agencies, bank and loan companies, vehicle auctions, and private owners. Each
sells cars and, at a minimum, you will familiarize yourself with prices that you
can use later as bargaining points.
Next, do
some research on the market price of cars you are interested in. To estimate a
car’s resale or trade-in value, check the NADA (National Automotive Dealers
Association) guide, Kelley Blue Book, or Edmund’s guide. These are available
online or at your local library, bookstore, bank, or insurance agent. To get an
idea of what specific models are going for regionally, start scanning the
classified ads in the Argus Leader and Rapid City Journal.
When
looking at a specific car (unless for sale by a private owner), study the large
sticker in the car’s window entitled “Buyer’s Guide.” The federal government
requires all sellers to disclose important vehicle information on this sticker.
If the sticker says “AS IS,” there is no guarantee that the vehicle will operate
beyond the edge of the lot. If the vehicle does malfunction, all repairs and
payments are your responsibility. Contrary to common perceptions, there is no
South Dakota “Lemon Law” for used vehicles, only new vehicles are covered under
SDCL 36-6D-(1-5).
A basic
bit of advice when purchasing a car is to inspect it thoroughly. That sounds
simple enough but many buyers do not take the time to give the car a thorough
inspection. If you do not have the expertise to inspect a vehicle (few of us
do, given the complex systems in modern vehicles), pay someone to do it. It is
better to lose $50 up front than to step into a money pit of repairs. In
addition to having the vehicle inspected, drive it. Test the starter, engine
pick-up, steering, alignment, handling, clutch, etc.
When you
are satisfied that the vehicle is sound, you might be ready to close the deal.
This is the most critical point in the purchase process. You will likely be
living with the terms of the deal for several years, so make sure the paperwork
is in the order you bargained for. Take your time and read the entire
agreement, study it overnight if need be. Do not get rushed into any deal you
are uncomfortable with.
Some
things to consider when closing the deal are making sure all blank spaces are
filled in, all the salesperson’s warranties are included, and that the promised
warranty is included. If you are making a deposit, understand the conditions
i.e., under what circumstances is it refundable?. Get a signed statement
verifying the mileage. If the dealer refuses to do any of these things, walk
away and look for a car elsewhere.
The most
important thing to remember when buying a car is to take your time. Research
vehicles in classified ads, online, and at your local library or bank. Have the
car inspected. And read the agreement thoroughly and ask questions. Remember,
an ounce of prevention is worth a pound of cure.
|
