The Consumer Caution Corner: Buying a car

Happy New Year! I hope everyone enjoyed the holiday season. This week, the Office of the Attorney General’s “Consumer Caution Corner” sets out good practices to follow when buying a used car:

What should I do before I start shopping for a car?

1) Decide what kind of car you need and how you will use it. Ask yourself:

a. Do I buy a new or used car?

b. How many passengers will usually ride in the car?

c. Do I need extra space to carry bags, tools and other things?

2) Decide how much you can pay for a car. Think about:

a. The cost to register the car

b. Car insurance and whether a warranty is included

c. Gas

d. Maintenance costs

3) Decide how you will pay for the car. You might decide to borrow money. Compare offers from several lenders. Ask the lender to pre-approve your loan.

How do I avoid a problem with dealer financing?

1) Ask the dealer if your deal is final. If it is, make sure the deal is written in the contract.

2) If the deal is NOT final, the terms of your financing could change.

a. The dealer will not sell your trade-in vehicle before the financing is approved

Get a written promise that:

b. The dealer will return your down payment if the financing is not approved

3) Remember: If the dealer offers you another deal, you do NOT have to accept it.

4) Read the contract before you sign it. Check the financing terms. That means the annual percentage rate, length of the financing, and amount borrowed. Are they what you expected?

What if I have a problem with dealership financing?

• If you have a problem with financing you got from the dealer, report it to the Federal Trade Commission. Call the FTC at 1-877-382-4357. Tell the person on the phone what happened. You can give as much or as little information as you want. Go online: ftc.gov/complaint.

Each week, the OAG’s Consumer Protection Education Program aims to provide consumers and businesses with the “know-how” to identify and protect themselves from unfair trade practices and marketplace schemes. If you would like to file a Consumer Complaint, please pick up a Form at the OAG (in Capitol Hill) and then please submit it by email to consumer_counsel@cnmioag.org. (Michael J. Cyganek, Special to the Saipan Tribune)

Michael J. Cyganek is consumer counsel at the Office of the Attorney General.