| Cars
Tips
for First-Time Vehicle Buyers
The Arkansas Lemon Law
Buying a Used Car
Tips for First-Time
Vehicle Buyers
General tips for buying a
used or new vehicle:
- Shop around! It
is essential to compare prices and financing options as well as
the features of the vehicle.
- Don't rush. Take
your time. Refuse to be pressured into buying a vehicle quickly.
- Do your homework.
Find out as much as you can about the vehicles you are considering.
Consumer Reports' guide to purchasing a vehicle is very
informative.
- Do negotiate price
and terms. Negotiate the price before you
talk about any trade-in allowances. Talk trade-in only after you
have negotiated a price for the vehicle you wish to buy. Don't be
afraid to negotiate a fair trade-in allowance. Get more than one
quote on your trade-in allowance.
- Insist upon taking copies
of all paperwork home with you to read thoroughly before
you sign anything. If you do not understand terms in the paperwork,
talk to someone who can help you, whether it is a friend, relative,
lawyer, or the folks at the Attorney General's Consumer Protection
Division. Don't sign anything until you are certain that you
understand it.
- Make sure you get the title
or the "official titling papers" at the time of purchase.
The law requires this.
Tips when buying a new car:
- Watch for special deals
for first-time vehicle buyers. Some manufacturers have programs
designed for you.
- Ask about rebates, special
low-interest financing arrangements and other sale incentives.
- Know what kind of warranty
the manufacturer offers on the vehicle you want to buy - read it!
- Closely scrutinize leasing
arrangements. In particular, know what kind of credit you get for
your down payment. Also, some leasing arrangements so closely resemble
purchase arrangements that consumers sometimes thing they are buying
the vehicle when it is merely a lease.
- Get a Consumer's
Guide to the Arkansas Lemon Law. Arkansas law requires that
this guide be given to every consumer buying a new vehicle as long
as the vehicle is not over 10,000 pounds (however, motor homes over
10,000 pounds gross vehicle rating are covered). If the dealer does
not provide you with a copy, you should immediately contact
the Attorney General's Consumer Protection Division. Free copies
are available from the Consumer Protection Division as well as online.
Tips when buying a used car:
- Go to a reputable dealer
if you opt not to buy from an individual.
- Look for the Federal Trade
Commission's Buyer's Guide - it must be affixed to the vehicles.
It tells you whether the vehicle is being sold "as is"
or with a warranty.
- Carefully scrutinize the
terms of any warranty before you buy the vehicle.
- "Service contracts
are not warranties. Know the terms before you buy!
- There is no "used
car lemon law" in Arkansas. Have a trustworthy, independent
mechanic inspect the vehicle before you buy it.
- Get the name of the previous
owner and call him/her. Ask questions.
- Look at the odometer and
be cautious. If the vehicle is a 1979 model and the odometer shows
that the vehicle has only been driven 10,000 miles, remember "if
it looks to good to be true, it probably is". The history of
a vehicle can often reveal an odometer rollback.
- Ask if the vehicle has
ever been wrecked or damaged. If you suspect that the vehicle may
be a "salvage title vehicle", call the Office of Motor
Vehicles at 1-900-28-TITLE (this call costs $5.00, but may be well
worth it).
The
Arkansas Lemon Law
A new car is a major investment.
You expect ideal performance from your new car from the moment you
drive it off the lot. Unfortunately, this is not always the case.
That is why the Arkansas General Assembly enacted the Arkansas Lemon
Law.
The Lemon Law and How
It Works
The Arkansas Lemon Law applies
to any consumer who buys, leases, or registers a new motor vehicle
in Arkansas. The manufacturer or one of its authorized agents must
provide the buyer with a booklet drafted by our office explaining
owners' rights and obligations under the Lemon Law.
Do I Have a Lemon?
You may have a lemon if:
- The manufacturer or its
dealer has made three or more attempts at repairing a defect that
is a "substantial impairment of the safety, value or use"
of the car;
- The manufacturer or its
dealer has made one unsuccessful attempt at repairing a defect that
is likely to cause death or serious injury;
- The manufacturer or its
dealer has made five or more attempts at repairing different problems
that, together, substantially impair the use or value of the car;
or
- Your car has been out of
service for a total of thirty days.
When Contemplating Filing a Lemon Law Claim
- Keep all repair records.
- Make sure to follow the
instructions in the "Consumer's Guide
to the Arkansas Lemon Law", available
online or from the Consumer Protection Division.
- If you have a potential
lemon law claim, you must give the manufacturer written notice of
the defect and allow the manufacturer one more chance to repair
the defect before requesting arbitration of your claim for a refund
or replacement.
Buying a Used Car
Buying a used car is a way
to get a good car at a reduced price. However, since the car has had
a previous owner, a smart consumer should pay close attention to the
history of the car and should be aware of the possibility of extra
repair expenses.
Buyer's Guide
When purchasing a used car, federal law requires that a used car
dealer post a Buyer's Guide on the window of the car. The purpose
of the Buyer's Guide is to tell consumers if the car is sold "as
is" (that is, sold with all defects, known or unknown) or if
the car comes with a warranty. While an individual who sells a single
car is not required to post a Buyer's Guide, dealers who sell six
or more cars a year are required to do so by law.
Important Buying Tips
- Check to see if the car comes with a warranty and, if so, what
the specific protection is that the dealer or seller will provide.
- Ask to have the car inspected by an independent mechanic, or arrange
an inspection yourself.
- Make sure to get any promises made by the dealer or seller in
writing (for example, to replace a broken tail light). Verbal promises
are difficult to enforce.
- Ask whether or not the dealer or seller offers an extended warranty
or service contract. If you decide to purchase a service contract,
make sure you understand what it covers and how long it will last.
- Inquire about any prior damage to the car and about the car's
repair history. Don't automatically accept the seller's response
as accurate. Consider contacting the Department of Finance and Administration
at 1-900-28TITLE for more information about the car's title history.
Currently, there is a $5.00 charge.
- Always test drive the vehicle.
- Contrary to popular myth, neither state nor federal law gives
consumers a right to cancel a car purchase. Therefore, make sure
that you have had the car thoroughly inspected by an independent
mechanic before you agree to purchase it.
- Remember, if you buy a car "as is" and have problems
with it, you must pay for any repairs yourself.
Odometer Rollbacks
It is illegal to disconnect
or replace an odometer for the purpose of changing the number of miles
on it. Both federal and state laws give protection to consumers who
suspect that they have purchased a car with a rolled back odometer.
What Is The Law?
It is illegal to tamper with
an odometer. It is also illegal to sell or advertise any device for
tampering with an odometer. Additionally, it is unlawful to operate
a vehicle with a disconnected or nonfunctional odometer with the intent
to defraud.
When a vehicle is sold, the
seller must give the buyer a written odometer statement disclosing
the following information: the vehicle's true mileage at the time
of transfer; the date of transfer; the buyer's and seller's names
and addresses; the vehicle's make, year, and body type; and the vehicle
identification number. If the seller knows that the mileage has exceeded
the mechanical limit of 99,999 miles, he or she must provide that
information to the buyer.
Take Precautions
- Know the reputation of
the person or dealer who is selling the car.
- Obtain the odometer mileage
statement before completing the transaction.
- Don't fool yourself. A
car that is ten years old will rarely have less than 100,000 miles
on the odometer.
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