CONSUMER AFFAIRS: Issues to consider when buying a car

2014-02-07T11:33:00Z 2014-02-07T17:52:45Z CONSUMER AFFAIRS: Issues to consider when buying a carJoseph Pellicciotti Times Business Columnist nwitimes.com
February 07, 2014 11:33 am  • 

The Federal Trade Commission offers consumers things to consider when reviewing advertisements promoting vehicle sales at great deals (www.ftc.gov, “Are Car Ads Taking You for a Ride?”).

The agency suggests consumers consider whether a sizeable payment, such as a large down payment, is required.

Determine if a discounted price applies only to particular models or is unavailable when ordering a car instead of buying one off the lot.

Do unadvertised qualifications exist to get low financing or low pricing? Is the loan re-payment time short? Does a special loan rate apply only if it is for a certain amount? Do higher amount loans require less desirable financing terms?

The FTC suggests consumers check whether a deal comes with a requirement to buy special things, such as extended warranties/service contracts or rustproofing.

Is the advertised vehicle price coming with special financing that is higher than what would have to be paid if you paid cash or supplied your own financing from a bank or credit union?

Are the advertised low monthly payments applicable for the entire term of the loan, or only for a short period? Do higher rates follow (or is a large balloon payment due at the loan’s end)?

Does zero due at lease signing still require some payment, like fees, taxes, a security deposit, or the first month’s payment?

Opinions are solely the writer's. Pellicciotti is an Indiana University Northwest faculty member and administrator. The article is for informational purposes only and not intended as specific advice. Consult your professional adviser before taking action. Author does not endorse/guarantee content within websites.

Copyright 2014 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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