Buying a Car?

Ofﬁce of the New York State Attorney General,

Consumer Frauds Bureau

(800) 771-7755

ag.ny.gov

New York Lemon Law Publications

ag.ny.gov/newcar-lemonlaws

ag.ny.gov/lemon-laws

Terms To Know

Manufacturer’s Suggested Retail Price

(MSRP): The sale price recommended by the

manufacturer. Most cars are NOT sold at this

price.

Invoice Price: The manufacturer’s initial charge

to the dealer. Because this usually is higher than

the dealer’s actual cost (the dealers receive

rebates and other discounts), it should not be

used in auto advertising, unless it reﬂects the

dealers’ total ﬁnal cost.

Extended Warranties or Service Contracts:

These are expensive and very proﬁtable to the

dealer. Check carefully to see what both the

manufacturer’s warranty and the extended

warranty cover. Often, the items most likely to

need repair or replacement will not be covered

by the extended warranty. A copy of the terms

and conditions of the service contract must be

provided by the dealership. You are entitled to

a full refund, less any claims paid, within twenty

days of the mailing of the service contract or

within ten days if the contract is delivered at the

time of sale.

Dear New Yorkers,

Shopping for a car, new or used, can

be a daunting experience. The more

information you have, the less likely

you are to be pressured into making

a decision you’ll regret.

Here are some tips to help you put

together the information you need

before you make this important

purchase. Being a well informed

consumer will keep you in the

driver’s seat…before and after

you make the deal.

Sincerely,

Buying

a Car?

Consumer Tips

Attorney General

of New York

Letitia James

Ofﬁce of the New York State

Attorney General

Letitia James

Resources

Know Your Price Range

Before you start looking at cars, determine what

you can afford to pay. Consider:

• How much do you have on hand to pay up

front, in cash and/or trade-ins?

• If you will borrow, what is the highest monthly

payment you can afford? Take into account

take-home income, living expenses and any

debt you currently owe.

Choosing a Vehicle

• Do some research. Websites, such as Consumer

Reports, include reviews of reliability and value

for new and used cars over several model

years. They also compare functions to help you

choose a make and model.

• Other sources, such as edmunds.com or Kelley

Blue Book, kbb.com, record the price of new

and used cars. Some surveys indicate that

consumers who carefully research the price of

cars pay an average of 5% less than consumers

who have not.

• Test drive any vehicle you are interested in,

including driving on different road conditions.

Considering a Used Car?

Choosing a Dealer

• Check with the Better Business Bureau to ﬁnd out if

the dealer is reputable.

• Visit websites that review dealerships to see what

other customers say.

• Considering a private sale for a used car? You may

ﬁnd a lower price, but a such a sale is not covered by

the Used Car Lemon Law, which provides important

protections.

Signing a Contract

• Don’t give in to high-pressure sales tactics; don’t be

afraid to walk out of the dealership if you feel like

you are being manipulated.

• Be wary of “one-day only” deals.

• Take your time to read the contract. Make sure

all verbal promises are included in your written

contract. If necessary, take the unsigned contract

with you and read it over in the quiet of your own

home.

• Be certain the car’s serial number matches the

number on your contract.

• Have a trusted mechanic check out a

used car before you buy it.

• Check an online service, such as CarFax.

com, to ﬁnd accident and repair records,

including whether a car was declared

salvage, labeled a “lemon,” or if there

are problems with the odometer.

Trade-Ins

• Trading in your current vehicle? Remember:

a selling price discount is sometimes off-set

by under-valuating a trade-in or charging a

higher interest rate.

• Get a trade-in value from several dealers.

• Check web sites or publications such

as the N.A.D.A. Ofﬁcial Used Car Guide

(nadaguides.com) or Kelley Blue Book for

suggested trade-in values.

Financing

• Shop around for ﬁnancing. Often, your own

bank will “prequalify” you for a loan. Use

that to compare other offers.

• Dealers sometimes make greater proﬁts on

ﬁnancing than they do on the car itself, so

negotiate ﬁnance charges.

• If you have credit problems, you may not be

eligible for the advertised ﬁnancing

• Look out for a balloon payment, which is a

large payment due at the end of the ﬁnance

agreement.

• Always know the total amount that you are

paying for the car, including interest, and

not just the monthly payments.

Refunds of Deposits

Many consumers mistakenly believe they are

entitled to a refund of their deposit if they

decide not to buy a car. However, there is no

right to cancel a contract, unless the dealer

fails to conspicuously post the refund policy. If

the dealer assists you in arranging for ﬁnancing

and you have not picked up the vehicle, you

may cancel at any time prior to signing a

ﬁnance agreement and receive a full refund.

Beware of odometer tampering:

• Check the title carefully for inconsistencies,

erasures and numbers that appear to have been

written over;

• Be very wary of titles that say “NOT THE ACTUAL

MILEAGE” - explanations of a previously

disconnected or damaged odometer may not be

true;

• Look for signs of tampering - loose dashboard,

broken speedometer, digits on the left side that

don’t lineup.