It’s pretty easy to spot the signs of a good car-buying experience: Things like trust, transparency and fairness at the dealership.
But we’ve all heard about someone who had a bad car-buying experience. From misleading ads or bogus fees to discriminatory practices.
So how can you protect yourself when buying a car? Here’s some important advice from the Federal Trade Commission:
First, it’s important to shop around for financing. Dealership financing often comes with marked-up interest rates. It’s not your only option. Start with banks, credit unions, and other financing companies. Get pre-approved and use that offer to negotiate with the dealership.
Before you sign anything, know your total cost, not just the monthly payment. Get it in writing and make sure it includes all charges, including any fees or add-ons. This will help you catch extra charges and add-ons dealers may try to tack on.
Also, we know it’s tedious, but read the sales contract and financing agreement carefully. Make sure the terms you agreed to match what’s in the contract. Get answers about any fees or charges you don’t recognize and tell the dealer to remove any add-ons you don’t want.
The FTC has had reports of dealerships in Arizona and Texas that were slipping add-ons — like theft protection, paint coating, nitrogen tires, or tinted windows — into the bill, even though the customer didn’t want or ask for those features.
The Texas dealership was having customers sign the contract electronically, where they couldn’t read the full terms of the contract. Ask for a printed copy.
When customers spotted the unrequested add-ons, the dealers in both states tried to get away with the upcharges by telling customers they were required to get the car. That’s not true!
So be ready to walk away if you’re not getting what was promised. You don’t have to take the deal if you’re not satisfied.
Learn more at ftc.gov/cars.
And if you think a dealership published misleading ads, charged hidden fees, or discriminated against you, tell the FTC: ReportFraud.ftc.gov.