Buyers Order Check Sheet
1. The date of the transaction
2. Make and model of the car your are buying
3. The VIN number of the car You are buying
4. The total amount that you have agreed to pay for the car
5. The amount of money they are giving you for your trade
6. The amount of the payoff on your current car
7. The VIN number of your trade-in
8. The difference in dollars between what you have agreed to accept for ,vom trade and the amount you have agreed to pay for the car
9. The amount to be financed if you are financing through the dealership
10. The number of payments if you are financing through the dealership
11. Annual percentage rate (APR) if you are financing
12. A list of all the fees beyond the price you've agreed to pay
13. A clear statement of the warranty that will come with the car
F&l and the Back end of Me Deat
Virtually every dealership has a finance and insurance (F&I) person who you'll meet once you've agreed on a price for the car. His job is to sell you the back end of the deal. He may appear to be your friend, but he's not. The F&I guy has but one objective: to squeeze more money out of the deal. If you intend to pay cash, he'll try to convince you to finance and save your cash. Is this because he's interested in your financial welfare? Hardly. When you finance, the dealership gets a commission from the financing institution or, if they are participating in the finance package, they get part of the interest.
The F&I person will try to sell you extended warrantees, rust protection, fabric protection, health and accident insurance, and anything else they can tack on the deal. We know of one situation where a woman came into a dealership, paid full price for a $14,000 car, and then let the F&I talk her into an additional $10,000 of options, insurance, financing, and other back-end items. While this is an extreme example, the lesson here is to understand that the F&I person is not there just to fill out the contracts but to sell. In more than a few cases, the dealership makes more money on the back end of the deal than they do on the car itself. This is one more reason for you to have done your homework ahead of time. Keep in mind that most of what the F&I person would like you to buy is really of marginal value. Specifically we refer to rustproofing, fabric sealer, and most extended warranties. Some items like loan insurance, etc., can be purchased outside the dealership for less money.
Taking Delivery
When you return to take delivery of your new car and to give the dealership your used car, be true to your word: inspect your new car. Make sure that it is the same car that you looked at.Backing up for a moment: After you've agreed on a price with the dealership and before you leave the lot, copy down the VIN number of the car. That way you'll know if they've tried to switch cars. Now, why would they do that? Well, one possible reason is because they have two identical cars on the lot. One they may have acquired several months ago before the manufacturer decided to raise the dealer cost by $500. If they can push off the older car-maybe only three or four months older-they will be able to pocket the $500 as profit. Or worse, there have been dealers who try to substitute the car you've chosen for the exact same model with the same options. The only difference is the second car fell off the delivery truck and had to be repaired. Hey, it happens.
Before you Sign
Understand everything you're signing!
Mileage Statement
If you are trading in your car, you will be asked to sign a mileage statement. Before you sign, be sure that the actual mileage of your car has been entered on the appropriate line in ink. Then sign the mileage statement. Don't leave it blank with the promise by the salesperson to fill it in later. Be advised that if the future buyer of your car should discover that the mileage at the time you sold it to the dealer was wrong, you, not the dealer can be sued. So fill in all the blanks before you sign.
New-Vehicle Mileage
The seller is obliged to provide you with a mileage statement. It should be the same as on the odometer.
Used-Vehicle Mileage (Used-Car Purchase Only)
The seller is obliged to give you a copy of the mileage statement signed by the previous owner. If there is no mileage statement, don't buy the car.
Power of attoraey
The dealer will need power of attorney in order to change the title on both your new car and the one you're trading in. If you have signed the buyer's order, you can sign these forms without their being filled in. However, if you want to be totally secure, ask that the forms be filled in before you sign.
Finance Contracts
If you decide to finance your car through the dealership, your buyer's order will be replaced with a finance contract. This contract will have so much fine print that it would take a couple of hours to read it. Most of the fine print is boiler plate that is dictated by law. The key things you want to check against your buyer's order are:
1. Is the VIN number the same on the buyer's order and finance contract?
2. Is the figure for the amount you intend to finance the same on both?
3. Look at the finance charges and be sure that they are as agreed. This section will also contain any other charges that you may have agreed to such as insurance.
4. Is the annual percentage rate as agreed?
5. Look at the amount and number of payments. Be sure that they reflect the total number of months you have agreed to pay and that the dealer has not tried to slip in some extra payments.
Warranty Agreements
You will be given a paper detailing the warranty. Read it carefully and be sure that you understand what is and what is not covered. Have the seller write down the exceptions. The warranty should be signed by the dealership's management.
New car Warranties
there are basically two kinds of new car warranties:
1. The manufacturer's warranty specifically states what it covers and the length of time and/or miles that it applies.
2. The other new car warranty is provided by the selling dealer and is an "adjustment warranty." This is designed to cover smaller problems like rattles, leaks, alignment, noise, and other problems that develop within the first 60 to 90 days. You should ask about the length of the adjustment warranty and have the salespersbn confirm, in writing, that these adjustments will be fixed free.
Extended Warraitties
these are warranties or service contracts that purport to cover your after the factory warranty runs out. Generally these warranties resent just another way for the dealership to make money. Some he a 50 percent or greater profit on each extended warranty sale. of publication of this book, dealers are not required to reveal the fit they build into these service contracts. This may change.)If you read the fine print you'll find that most of the things that -ad or will go wrong after the manufacturer's warranty expires are v covered. In addition, many of these warranties have a deductible. Take time to read all the fine print, even if it takes you a half hour. en you've read all the fine print, you might want to ask the salesperson if he or she really feels that their car is so poorly built that it -ds this added coverage. You might even suggest that if the dealerp has so little faith in the reliability of their vehicle, they should throw in the extended warranty free or that maybe you should reconsider the whole deal. Watch them try to squirm out of that one.One other note: If you should decide to buy an extended warranty,make sure it's one that is backed by the factory. Avoid third-party warranties. All too often owners discover that third-party warranties end offering no more value than the paper they're written on.
BEFORE YOU SIGN-CHECKLIST
- Mileage Statement
- Has the mileage of your trade-in been entered?
- Are all the blanks filled out?
- New-Vehicle Mileage
- Is the mileage statement on the new car the same as on the odometer?
- Used-Vehicle Mileage (used vehicle purchase only)
- Power of Attorney
- Finance Contracts
- Is the VIN number the same on the buyer's order and finance contract'
- Is the figure for the amount you intend to finance the same on both?
- Are the finance charges the same as you agreed"
- Are there other charges to which you have agreed?
- Check the other fees normally associated with a new car purchase.
- Is the APR (annual percentage rate) as agreed?
- Do the amount and number of payments reflect the total number of months you have agreed to pay?
- Warranty Agreements
- Have you read the warranty'
- Do you understand what is and what is not covered?
- Are the agreed exceptions in writing?
- Has the warranty been signed by management?
- Have you received the owner's manual and maintenance record books?
- Do you have all registration records?
- Have you arranged for your insurance?
- Is your insurance form in the glove compartment?
