The purchase of a vehicle is often second only to buying a home in the economic life of most households.  For most people, a car is a major economic investment.  Additionally, reliable transportation is necessary for most people to maintain employment, further their educations, access healthcare, and conduct the general business of living in our community.  Getting ripped off in a vehicle transaction can have a devastating impact upon your life resulting in loss of employment, severe economic hardship, credit damage, and even health problems. 

In the years since I have opened my practice I have represented many individuals and families who have been victimized by dishonest and unscrupulous car dealers.  While the specific details change over time, the general nature of the frauds perpetrated against consumers actually tend to remain the same.  Predatory lending practices, sale of wrecked or damaged vehicles, and several other common scams continue.  For a good over-view of the deceptive practices of some dealers see this excellent resource from Public Citizen: http://www.citizen.org/autosafety/article_redirect.cfm?ID=10775

I believe that there are several steps that car buyers can do to avoid getting ripped off during the car buying process.  These steps all involve making sure that you have access to information necessary to make an informed decision.  When it comes to buying a new or used vehicle information really is power.

• Know your credit score and financing options prior to going to the dealership.   Financing is the most common area where consumers are ripped off in car purchases.  Consumers should explore their financing options prior to going to the dealership.  Many dealerships will increase the costs of financing your vehicle over what is actually offered by a prospective lender in order to keep the difference as additional profit.  Consumers should explore multiple financing options and compare those options to determine which offers the best deal.  Shopping financing is as important as vehicle selection.

• Know the NADA or Kelly Blue Book value of the vehicle.  It is impossible to get a good deal unless you truly know the value of the vehicle.  Both NADA and Kelly Blue Book provide industry-accepted values for trade-in, used and new car purchases.   These values can be easily accessed online at no cost.  The values are adjusted to account for general condition and for mileage.   Remember, the dealership seeks to sell the vehicle for as much money as possible, your goal is to pay as little as possible.  The dealership knows the value of the car, you should too. 

• Have an independent inspection of a used car.   Honest car dealerships rarely take issue with a consumer taking a used vehicle to an independent mechanic for inspection prior to purchase.   Having a mechanical inspection done prior to purchase can reveal problems such as prior wrecks, flood damage, excessive mileage, or poor maintenance history. 

• Obtain a car fax report or title history prior to purchase.  Both carfax and the Florida Department of Highway Safety can provide you with valuable information regarding the history of the vehicle.  It is important to be aware of whether the vehicle was ever used as a rental car, subject to a lemon law claim, or totaled in a wreck.  This information can greatly impact the value and reliability of the vehicle. 

• Carefully observe the sales and financing transaction.  There are several telltale signs to be aware of when you sit down with the dealership to fill out the paperwork.  First, is the dealer signing the documents along with you and providing you with signed copies of all the documents?  If not, you may be being “spot delivered”, that is the dealer is taking your trade-in, but doesn’t intend to commit itself to the deal and intends to try to change the terms at a later date after your trade-in is gone.   Does the dealership require that you sign an arbitration clause?  This is a warning sign that the dealership anticipates being sued and is trying to get you to contractually waive your right to sue it in Court.  Arbitration clauses keep the dealerships name out of the Court records, take away the threat of a jury trial, and requires you to resolve your dispute before an arbitrator named in the contract rather than a judge.  Many consumer advocates believe that arbitration is an unfair forum for consumers.