Buying a New Car

Posted on Apr 1, 2013 in Cars, RICO

1/15/13 [RICO]

Buying a car can be exciting! RICO offers consumers the following information to help steer you in the right direction!

First, do some research before leaving the house! Think about the car model and the options you may want, so you have an idea of how much you will need to spend. Then, think about how much you can AFFORD.

Once you get there, the car on the showroom floor may not be the one you get to drive home. Advertised cars and showroom models are often loaded with options, so pay attention to the starting price and know you’ll have to work up from there to add all of the bells and whistles you may want.

And, expect that once you start, you’re going to have to negotiate. Just remember, you’re the one that will decide if the deal goes through, and if you’re not satisfied with what’s being proposed, say so, then tell them you’re going to have to look around some more.

But, if you’re serious about purchasing, consider talking about interest rates and terms with your local bank or credit union first. Dealer financing may not offer the best interest rates. And, know that a rebate may not always apply to you. Some rebates only apply to members of the military or recent college graduates, so don’t count on a rebate until you know it will apply to your situation.

And, be clear what’s provided in the purchase price. The length of a warranty period and items covered under a warranty may vary. Be aware of any preconditions that you, the buyer, will have to maintain. Know that if you don’t comply with the conditions of a warranty, you may be voiding terms of the warranty.

Lastly, be aware that once that final contract is signed, you are legally bound. So, read every document carefully before signing it. Watch for any fees that may appear on the final contract, and if you don’t understand what those fees cover, ASK! While, there is usually a “documentation fee” tacked on most car purchases, you should question any fees you are not sure of…many extra fees are NOT MANDATORY!

Under Hawaii law, you will receive written documentation about Hawaii’s Lemon Law and information about door-to-door sales. Read this information carefully. If it’s not discussed with you, call our office and discuss it with us.

For more information on these and other topics, visit the State’s website at www.hawaii.gov/dcca/rico.