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<\/a><\/p>\nBefore you start, know exactly how much you can realistically afford. You can either pay for the car in full or finance it over time. Because most people don\u2019t have the cash to buy a reasonably expensive used car outright, most choose to finance. If you choose the latter, remember \u2013 the longer the term of the loan, the more the total cost of the vehicle will be, due to the accumulation of monthly interest charges and other costs associated with the loan.<\/p>\n
According to the Louisiana Used Motor Vehicle Commission, when financing a vehicle, make sure you have a clear understanding of the various aspects of the loan agreement ahead of signing any purchase documents. These include:<\/p>\n
\u2022<\/strong> The exact price you\u2019re paying for the vehicle; Buying from a Dealership<\/strong> Knowing a dealer\u2019s reputation, including any unresolved complaints on file or repeated violations can prove valuable. You can obtain information from the state Attorney General (AG) as well as the Better Business Bureau (BBB) or your local consumer protection agency.<\/p>\n While some dealers offer a buyer the right to cancel, often called a \u201ccooling-off\u201d period, with a money-back guarantee or a \u201cno questions asked\u201d return policy as an enticement, one important thing to keep in mind is \u2013 dealers are by no means required by state law to give used car buyers a three-day right to cancel. In fact, the right to return a car or truck in a few days for a refund will only take place if specifically expressed in writing by the dealers to their buyers.<\/p>\n Furthermore, the Federal Trade Commission\u2019s (FTC) Used Car Rule requires dealers to post what is known as a \u201cBuyers Guide\u201d in all used cars for sale on their lot. The Buyers Guide must clearly tell you:<\/p>\n \u2022<\/strong> If the vehicle is being sold \u201cas is\u201d or with a warranty; Unexpired Manufacturer\u2019s Warranties<\/strong>
\n\u2022<\/strong> The total amount you\u2019re financing (after down payment, if applicable);
\n\u2022<\/strong> The finance charge (the dollar amount the credit will cost you per the APR);
\n\u2022<\/strong> The APR (a yearly percentage rate used to measure the cost of credit);
\n\u2022<\/strong> The number and amount of payments (36, 60, 72 monthly payments); and
\n\u2022<\/strong> The total sales price (the sum of the monthly payments plus the down payment).<\/p>\n
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\n\u2022<\/strong> The percentage of the repair costs the dealer will pay under the warranty;
\n\u2022<\/strong> That spoken promises are difficult to enforce;
\n\u2022<\/strong> That all promises should be obtained in writing;
\n\u2022<\/strong> That the Buyers Guide should be kept for reference after the sale;
\n\u2022<\/strong> The major mechanical and electrical systems on the car, including some of the major problems you should look out for; and
\n\u2022<\/strong> To ask to have the car inspected by an independent mechanic before purchase<\/p>\n
\nIn some cases, the original manufacturer\u2019s warranty may still be in effect if the vehicle has low miles and is only a couple of years old. Therefore, the dealer may choose to include it as part of the \u201csystems covered\/duration\u201d section of the Buyers Guide. As the new buyer of the vehicle, be sure to ask the dealer for the vehicle\u2019s warranty documents.<\/p>\n