Don’t like being controlled by a used car dealer when you go shopping?

Follow these easy steps to stay in charge of your decision-making. And always remember, the dealer is trying to get your signature; don’t just give it away, make the dealer bargain for it!

1. Before you visit a dealer, decide first what car you want. Then look in your local newspaper classified ads or the Kelley Blue Book to find out how much those cars may be selling for.

2. Before you visit a dealer, go to your bank or credit union and apply for a loan to buy the car you are looking for. When you have a loan commitment, then you can go car shopping.

3. Before you visit a dealer, ask a friend to go with you – never go to a car dealership alone. Ask your friend to read all these notes before you go in order to be prepared to help you when the time comes.

4. Should you trade in your old car or sell it yourself?

It is usually better to sell your old car yourself, and use the money for your down payment. If you trade in your old car for a down payment, you will get less money for it.

If you decide not to sell it yourself but to trade in your car anyway, before you visit a dealer, put a spare car key in your pocket. This is the key you will give the dealer when they ask for your car keys so they can appraise your trade in. (Later, if you decide you want to leave the dealership but they don’t want to return your spare key – it happens! – you can simply drive away using your other keys.)

5. When you get to the dealership, do not give them your drivers license. If they tell you they need it to check your credit, tell them you are paying cash (through your bank loan). If they say you can’t test drive the car unless you are licensed, tell them you’ll show them your license if you find a car you want to test drive; show them your license, but don’t give it to them. If they still want you to hand it over, the real reason is that they want to use it to keep you from leaving, and so you should leave immediately. There are many, many used car dealers, and many of them are honest. You don’t have to do business with one that will use pressure tactics against you to extract your signature.

6. The dealer may ask you how much you want the monthly payment to be. Do not tell them. Instead, keep asking, "What is the price of the car?" (Remember, you already researched how much the car you want should cost so now you need to know what price the dealer is asking. Your monthly payments are between you and your bank or credit union, not the dealer.) If the dealer won’t tell you the price of the car, leave immediately. Shop at another store.

7. If the dealer tells you anything about the car, such as why it was traded in, or what it was used for, ask him to write that information down on his business card. If he won’t, he’s lying. You should leave immediately. Shop at another store.

8. Ask whether the car was ever in an accident, and if it was a rental car. If the dealer says, "It wasn’t," tell him to write it on his business card. If he won’t, you know you’ve been lied to, and you should leave immediately. Shop at another store.

(A word here about Carfax and other online vehicle reports. Carfax does not disclose whether the car was ever in an accident! They can only tell you if the car was ever reported to DMV as a salvage vehicle–meaning a total wreck, flood, or stolen vehicle–only total losses show up on these reports. All dealers know this. If the dealer tells you the car has never been wrecked because the Carfax report is clean, you’re at a dishonest dealership.)

9. Do not agree to pay the dealer’s price if it is more than what you found in the newspaper ads or Kelley Blue Book.

If the dealer says the car is more valuable because it’s certified, ask for the certified checklist that was completed by the technician. This usually contains over 100 items that are supposed to be inspected and repaired or replaced as needed.

10. Negotiate the price you are willing to pay and then have the dealer write it down.

11. Before you agree to buy it, take the car to your mechanic to have it checked out. Ask your mechanic whether he would buy this car for his children. If the dealer won’t let you take the car to your mechanic, leave immediately. Shop at another store.

12. If you notice the car needs work, don’t let the dealer tell you to "take it home today" and just bring it back later for them to repair. Tell them, "I won’t buy this car unless it is fixed. You fix it first, and I’ll come back to check on it." You work hard for your money. Why should you buy anything that needs fixing? Don’t sign anything at all until the work is done to your satisfaction.

13. After you and the sales representative agree on a price, you will be taken to the finance office. Be very alert. This is where the dealer tries to double his profit on the sale! Don’t buy anything you didn’t already plan to buy when you arrived at the dealership.

14. Do not let the finance manager talk you into financing the car through them. It’s not likely that they can finance your car for less than the pre-arranged loan you have from your own bank or credit union. Remind the manager that you already have your own financing.

15. Remember that the price of everything you buy from the dealer is negotiable. If you want a service contract, ask to look at the application. Service contracts have bronze, silver or gold type coverages and each one covers more and costs more than the one before it.

Be sure you understand what the odometer reading will be when the service contract is up. (A 75,000 mile plan doesn’t mean you get 75,000 miles of coverage; it means the contract is up when there are 75,000 miles on the odometer, even if it’s at 40,000 miles when you buy it!)

Ask how much they are asking for the coverage you want. (Don’t ask how much it costs, ask how much they are asking–the price is negotiable, and the dealer will quote you a price that is double or triple its cost.) Negotiate accordingly, and make sure they don’t reluctantly agree, only to change the deal to the "bronze" coverage if you were negotiating the price of the "gold" coverage. Tell the dealer to give you the service contract application and look at it carefully to see which boxes are checked before you sign anything.

16. If your negotiations with the salesman were in Spanish, the dealer must give you a Spanish language copy of the contract completely filled out before you sign the English contract. Read the Spanish contract carefully so you understand it. Look at the numbers printed on the English contract and make sure the dealer didn’t change anything.

17. Take your time and read the papers before you sign them. You may have been at the dealership for some hours already, and now you are tired and wanting to leave. This didn’t happen by accident! Some dealers keep you waiting just so you will be tired, hungry, and anxious to get home with your new car. Take your time and read the papers before you sign them. Ask the dealer to explain anything you don’t understand. If they can’t, or won’t, stand up and leave!

18. Don’t buy fabric protection, paint protection, undercoating, credit insurance, GAP protection, or a theft alarm from the dealer. They are not worth the money the dealer charges.

19. Tell the dealer to give you a copy of everything you sign.

20. In California, if the price of the car is under $40,000, you can buy a cancellation option if you have any doubts about the car. This means that you will be able to return the car within two days for any reason. You will get your money back, less a re-stocking fee.

21. Take the signed contract to your bank or credit union and they will pay the dealer for the car.

Congratulations! You have done your best to get your car at a fair price!

Donald F. Seth
Attorney at Law