FCAN Car Buying Guide
Buying a car is often an unpleasant experience for consumers. You don't exactly know what to expect, what a fair price is, or whether the dealer is trying to rip you off or not. FCAN presents the following information, with the help of insiders in the auto dealer industry, to arm you to be a better consumer. You CAN know what a fair price is. You CAN know what extras to buy and when to say no. You CAN know if the financing is fair
The first thing to know is that the price consists of three parts: the price of the car, the terms of the financing, and any add ons. Consumer advocate and car dealer Jack Fitzgerald gets credit for terming those items PTA, and he recommends the PTA process. There are links to his consumer page and more information on PTA below.
Shop for credit
If you have good credit, check with your credit union or other financial institution first. That way, you can compare to the rates offered by the dealers. Sometimes dealers can offer manufacturer financing that will beat the banks.
If you don't have good credit, still shop around, but you'll be in a different situation at the dealer. They will "shop" your credit app around and may have access to other financial resources. The dealer may find good financing, but there may be an arrangement between the dealer and the finance company to rebate part of the interest back to the dealer. This is, in effect a cost of buying the car and a profit for the dealer.
When buying, you need to add the cost of your loan, including any origination fees plus the interest, to know the total cost of what you're buying.
More Resources
(with thanks to our Community
Partner Fitzgerald Auto Malls)
Buying a New Car (from FTC)
Car Ads - Reading Between The Lines (from FTC)
Building A Better Credit Report (from FTC)
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The real one, not the one that tries to charge you. |
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Information on auto dealer fraud |