How Do You Buy a Car?

Consumer Law

Know What You Need

• What can you afford?• What features do you want?• When is the best time to buy?– Not when you are forced to– When models change and old models are

discounted– When you have cash saved for a sizeable down

payment (you have bargaining power then)

Lease vs Buy

• Leases require money down• Leases have major stipulations and restrictions in

the contracts. Read your contract before signing it!!!• Do not lease if-– You drive a lot (leases have mileage restrictions)– If you do not have money to put down

• Advantage to leasing– Get a new car every few years– Smaller payments

How to Buy a Used Car• Look for certified vehicles-vehicles that have been inspected and

meet specifications– Example: GM Certified

• Look for the Buyer’s Guide (What does it say?)• Must post this guide in the car and if you buy, you must be

furnished with a copy.• Be aware of buying without having your mechanic inspect the car• Watch for damage under the car

– Erosion and rust (caused from salt climates)– Damage caused from wrecks– Painting over damage

Buying from a private individual

• Certain risks involved in this type of transaction• Implied warranties of merchantability are not given

by a private party• An exception to this is if you are given an express

warranty• Ask to see the Certificate of Title-who actually owns

the car– Look on the back-others who own security against the

car have signed the back. These persons can repossess it after your transaction.

WarrantiesGood or Bad?

• Some warranties are not worth the paper they are written on.

• Corporate warranties are usually the best• Example : GM or Ford Warranties

• Sometimes when buying a used car from a used car lot, they try to sell you car warranties that are very restricting at best. They cost a lot of money and have very high profit for the car dealer. Be aware of these. Do your homework.

What if something is wrong with the car after the transaction?

• Know your rights as far as your warranty• Notify the seller immediately of any problems• If your car is under warranty, do not try to fix it

yourself. This action will nullify the warranty.• Do not let the warranty expire before you notify

the seller of a defect.• Can buy extensions of warranties- but do your

homework as to whether they are worth the money

What is the Lemon Law?

• Does Georgia have a Lemon Law?• If so, what does it cover?

Odometer Tampering

• What is it?• Is it legal?

Car Insurance

• Types of insurance-What do they pay for?– Bodily Injury Insurance –– Property Damage –– Collision– Comprehensive– Medical Payments?– Uninsured or Underinsured Motorists

• Why was No Fault Insurance developed?

Do you always need full coverage?

• No, if your car is very old and if damaged it would possibly be totaled, you may only need to buy liability insurance so the other persons would be covered.

• If you have medical insurance through your employer, you may be covered medically through this policy.

• Know your rights and your stipulations in your policy before you opt out of any insurance!!!!