Car Purchase Tips
Dealers have a finance department that is absolutely wonderful at confusing
you about the amount that you are actually paying for your new car. Not only
that, they love to charge you a large fee to produce those “documentary”
masterpieces.
Watch out for:
- Incorrect prices or price totals
- Extra fees that have never been discussed
- Optional extras including those that “everybody buys”
- Blank or incomplete areas in the documents
- Missing or incomplete rebate adjustments
- Excessive fees for normal items like title & tags
- Model number or option mistakes
Contract Tips
Here are some additional details on what to watch out for in your paperwork:
1 - Incorrect prices or price totals - Each item that is individually priced should
be verified for pricing accuracy.
Every subtotal and grand total should be checked on a calculator for math
errors. Don’t let an item get added twice or an extra hundred dollars slip into
your total price.
A Florida investigation in 2003 found paperwork errors in 34% of sales
documents. These were math errors, model/option mistakes, or outright deceptive
trade practices.
Double check everything!
2 - Extra fees that have never been discussed - Even though the RFQ quote placed
limits on fees, don’t be surprised to see them back again at full price in your
paperwork.
Don’t cross them out or initial the changes. Insist on the documents being drawn
up correctly with the agreed upon fees clearly stated on the appropriate lines.
Don’t agree to any last minute fees.
3 - Optional extras including those that “everybody buys” - Dealers are master
manipulators who know that once people make a decision to buy, it’s very easy to
sell them additional items. They are expert at sliding things in at the very
last minute that “everybody buys” and “everybody wants” because these are a
“great deal.”
Don’t be fooled by paint protection, pinstriping, rustproofing, and extended
warranty offers. These are always overpriced and never a “great deal.”
4 - Blank or incomplete areas in the documents - Danger! Danger! Blank or incomplete
lines can be filled in later to make it seem like you agreed to things that
weren’t even there when you originally signed the documents.
Draw a “Z” or an “X” through any blank area, initial it, and have it initialed
by the dealership signee.
Always get a carbon copy of all the documents you’ve signed. If the dealer says
they will mail you your copies after processing, demand a set of photo copies.
The Truth in Lending Act specifies that you should receive copies, so don’t get
bluffed.
5 - Missing or incomplete rebate adjustments - You worked hard to find and negotiate
all the rebate credits that make up part of your down payment or special
financing.
Take the time to verify that each rebate is listed and for the correct amount.
The correct way is for each rebate to be listed as part of the down payment, not
as a discount from the selling price.
6 - Excessive fees for normal items like title & tags - Look up what your State
charges for title and tag work. Remember that your quote form specified a limit on this fee as
well.
It’s the responsibility of the seller to transfer title. Don’t overpay for
something any seller is legally obligated to provide to the buyer.
7 - Model number or option mistakes - Always check the model number listed on the
contract for any slight errors in the model number itself.
A missing digit or alphanumeric character can mean an entirely different model
than the one you are intending to buy.
Similarly, trim packages and additional option items need to be verified for
correct number and pricing.
Once you’ve signed the contract, it overrides the price quote, so take the time
to verify each line item.
Next: Contracts
