Read this before buying a vehicle on Presidents Day weekend
PORTLAND, Maine – If George Washington was here today, what kind of car could he use to navigate?
There are plenty of options, as dealers will remind you over Presidents Day weekend, and state regulators have released a guide to help buyers avoid a vacation nightmare.
The Maine Bureau of Consumer Credit Protection released its guide on Friday, just before the popular Car Buying Weekend, to give buyers key questions to ask before they put money – or most importantly, no money. money – on a new vehicle.
For those who borrow, the guide warns that reforms in the mortgage sector to prevent people from taking loans they cannot afford have not affected auto loans.
“It is still quite possible to buy and finance a vehicle that you… cannot afford,” the guide explains.
David Leach, Senior Examiner at the Bureau of Consumer Protection, co-authored the latest consumer guide, available at credit.maine.gov, under the “Publications” link in the center of the page.
“The idea of buying a new or used car or truck can be a difficult process involving negotiations not only on the purchase vehicle, but often also on a trade-in,” Leach said in a press release. . “[The] booklet will help Maine consumers better understand how to successfully negotiate for their best price and how to purchase the lowest loan rate if they choose to finance part of their purchase.
The guide explains how to get free credit reports, how to figure out what you can afford, how to find financing, what to look for with “no down payment” offers, and what to expect if you start taking credit. delay in payments. .
The post also notes six things to look out for when buying a new or used car:
– Washing of the title of a vehicle that has been recovered or damaged.
– On-time delivery, where a dealership allows a car to be driven before loan approval, which may incur additional charges.
– Simple contract errors, such as a misspelled name or other personal information that can cause future problems.
– Contractual clauses, such as a common clause allowing the recovery of the vehicle in the event of expiry of the insurance cover.
– And charged payments, when a financing plan includes additional guarantees or options that the buyer has not requested.
The publication also cautions buyers against title loans, which allow a buyer to use the vehicle itself as collateral for a loan.
“If the loan is not repaid, the vehicle can be taken back and sold,” says the guide.
These types of auto loans are illegal in Maine but available in New Hampshire. The state guide says regulators in Maine may not be able to help a consumer facing repossession due to a default on a title loan.
The vehicle buying guide is part of the Consumer Credit Protection Bureau Downeaster Common Sense Guide Series.