Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, June 18, 1995 TAG: 9506220004
SECTION: BUSINESS PAGE: D-2 EDITION: METRO
SOURCE: SHANNON D. HARRINGTON STAFF WRITER
DATELINE: LENGTH: Medium
Paul DeLawter of Roanoke said he will purchase a car only from a dealer he trusts and declines to shop by newspaper classified ads or other more casual sales methods.
"Once you find a dealer and become acquainted and have gotten good results, you go back to that dealer," DeLawter said. "It's a friend. You lean more toward your friends and no one else."
Despite that advice, Jean Ann Fox, president of the Virginia Citizens Consumer Council, said that most complaints she gets are about dealers.
"The dealer doesn't have the service records and so the dealer is not in the position" to let the buyer know exactly what could go wrong with a car.
"There are fewer protections for used cars. You don't have the certainty that if you buy a late-model used car, that you're not buying someone else's 'lemon,'" Fox said. For example, she said, if a car was taken back voluntarily as a "lemon," a dealer does not have to disclose that fact. If the car is taken back because of legal action, though, the dealer is required to tell potential buyers.
Here are some steps Fox said a used-car buyer should follow:
Always have a used car inspected by an independent mechanic.
Shop for financing separately from shopping for a car. The problem is that people assume they have no other options but for the dealer to resolve their poor credit, Fox said. "There are things you can do to rehabilitate" a poor credit rating. She suggested the use of a credit counseling service in Roanoke, credit unions, banks who are willing to take a little higher risk or by calling a home economist.
Do not give any personal information until you know you are ready to buy the car. Doing so gives the dealer an opportunity to do a credit check beforehand.
Get all promises from the dealer in writing.
Check the history of the car from the Virginia Department of Motor Vehicles. Although the DMV will no longer give out past owner information, the title history could provide odometer information and some registration history. The DMV charges a minimum fee of $5.
Keep a copy of the purchasing contract for reference to any future problems. All legal rights of the consumer are spelled out in the contract, Fox said.
Beware of 50/50 warranties where dealers pay half the bill for repairs. That's because the dealer sometimes has an agreement with a mechanic and knows what kind of price will be charged to resolve certain problems. Therefore, the customer could be paying for it. "There is an invitation to mislead," Fox said.
Most dealers would agree with Fox that taking a car to an independent mechanic is wise. It protects the dealer, too, said Ralph Peck Jr. of Automobile Exchange in Roanoke. "The most important thing to do is to let a mechanic check it out," he said. "If a dealer won't let a mechanic check it, I wouldn't be that encouraged to buy from that dealer."
The best defense for a consumer against future credit problems is a little common sense, Fox said.
"If a person can't afford to make a down payment, they're probably living to close to the edge to afford the car," she said.
by CNB