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Family Finances: Basic lessons on the road to buying a car
Friday, November 03, 2006

In the market for a new family car?

We learned some valuable lessons lately in our own new car search.

Here are just a few:

Lesson No. 1: Expect information obtained from car salesmen to be woefully incomplete. If it sounds too good to be true, it probably is. The car we recently considered came with "free tires and batteries for life," promised the salesman. What he failed to mention: It's only available if you have the car serviced at that dealership -- the most expensive option.

"How soon can we have the car once we decide?" we inquired. "The next day," was the salesman's response. Critical missing information: That's only if we selected a car off the lot. Cars on the lot had extra costly options we didn't need. Fail to take a new car off the lot, and we could expect to wait as long as three weeks for our new car.

Lesson No. 2 Research a car you're considering before you shop. Search www.kbb.com and Edmunds.com for values of the car you're considering and the value of the car you're trading in. Check Consumer Reports and other publications for objective ratings of the car you're considering.

Lesson No. 3: If you're purchasing a used car, search the vehicle identification number on a database before you buy it. You can get its history once you know the vehicle identification number at www.carfax.com. Carfax searches for accidents, floods, odometer readings, buybacks and a host of other information about a used car you're considering.

By the way, it doesn't matter how much you spend on a car. You still could wind up with a lemon.

In 2005, even a $600,000 Lamborghini was "bought back" by the manufacturer under one state lemon law.

Don't feel like searching a database? Then look carefully at the paperwork you get upon buying the car. Look for words like "buy back," or other disclosures on the vehicles. Often a dealer is required to provide you with notice, says Craig Kahn, of Kahn & Associates LLC., Cleveland. But the notice is buried in a stack of paperwork so you'll skip it. You also can check the U.S. Department of Transportation's Auto Safety Hotline at 1-800-424-9393 for recalls.

Know your state's lemon law. In Pennsylvania, you can find information at www.attorneygeneral.gov, and clicking on "Consumers" and "Hot topics."

Mr. Kahn notes that when you buy a car, you have more than one lemon law to consider. Although state lemon laws often apply to new or new leased cars, you may also have rights under the uniform commercial code and federal unfair and deceptive practice rules. You also have some rights if you purchase warranties.

So if your new car is giving you trouble, don't buy a dealer's word that there's not much you can do. Also, be sure to keep good records of repairs, including the date of service, specific repair and how long your car was out of service.

State lemon law relief often is very specific. It may provide for you to get your money back, any loan paid off, and to return the vehicle or get a replacement car.

But "to get that remedy, you have to have perfect facts," Mr. Kahn said. "Most people have all kinds of problems going wrong at all different times. They start to lose faith, get scared of driving and don't want it long." Don't give up, he says.

Cash compensation, he notes, can be more attractive than getting a replacement vehicle because the dealer likely won't have the exact model you want anyway.

First published on November 3, 2006 at 12:00 am
Spouses Alan Lavine and Gail Liberman are syndicated columnists. Their latest book is "Rags To Retirement," published by Alpha. Contact them at mwliblav@aol.com.