Tips For Buying A New Vehicle

Many consumers believe the law allows them three (3) days in which they can change their mind and cancel the contract.

They are wrong. When you sign a contract at the dealership, it is a valid contract, and usually only subject to financing approval.

Remember that you are making a major purchase. If you need to think about it overnight, be willing to walk away and go back to the dealership tomorrow. Don’t sign anything until you have all the information you need and are ready to buy.

Carefully scrutinize every document before you sign, especially the retail installment contract.

NEVER let someone “tell” you what the contract says. Examine and understand the sales price, interest rates, payments, trade-in values, and pay-offs. If you are leasing, or financing with a balloon payment at the end, make sure you are aware of your responsibilities.

NEVER sign a blank form, or one with blank spaces in it. Make sure that you understand every amount listed, and that it agrees with the “deal” that you made.

If the contracting / signing process is done using an electronic tablet, take your time and review each page. If you feel it is necessary, have dealer finance staff print a hard copy of a form or information so you can review it carefully.

If there are agreements that are not a part of the contract, such as the opportunity to drive the vehicle over the weekend before deciding to purchase, get the agreement in writing and signed by a manager. If there are any options or services that the dealer will owe you after the contract is signed, get a written and signed form or letter explaining clearly what they have agreed to provide. A written agreement almost always takes precedence over any oral representation.

You should be able to buy the vehicle for the advertised price. Any “add-ons” are optional. All new cars are required by federal law to have the factory Manufacturer's Suggested Retail Price (MSRP) window sticker on the car.

Once you have signed a retail installment loan contract and taken possession of the vehicle, normally the contract can only be cancelled if:

• Both parties agree to cancel it;
• The financing does not go through; or
• There is a written agreement that it can be cancelled, such as after a weekend “trial” period.

You are entitled to a copy of every signed document. Make sure you get them at the time of signing.

Additional items such as extended service agreements, credit life and/or disability insurance, GAP coverage, etc. are optional. Make sure you understand what they are, and whether any or all of them are right for you.