Top 9 Used Car Salesmen Tricks, and How to Avoid Them

One of the biggest moments in many people’s lives is driving off in their brand-spanking-new automobile. It’s an exhilarating feeling. It’s also a big moment because in that very instant, that brand-spanking-new car loses a big chunk of its value—the difference between the retail price you paid and the car’s wholesale value. That’s typically thousands gone in an instant.

That’s why some car buyers choose to shop around for a used car. You save yourself that steep initial drop-off in value. More importantly, you get a car that runs just as well, is just as dependable, and looks and feels as good as that new car—that is, if you play your cards right.

For if there is one pitfall of buying a used car, it’s the risk of buying a lemon, a junker—call it what you want, you get the point: the wrong car. Used car dealers, after all, have nearly as bad a reputation, if not worse, than lawyers do. This holds true for individual people selling their cars through newspapers, Web auctions and classified sites, or with the old-fashioned signs in their car windows. The saying, “Buyer Beware,” no where has more meaning than with cars.

The opposite to that, of course, is that there are some real steals out there in used cars. We’re talking about quality vehicles that will perform beyond your expectations at a low price. Here’s how to find these perfect used vehicles, and avoid the top 10 scams that used car dealers everywhere try to pull on you.

1. Get a second opinion for the hype. Used car dealers will bombard you with every adjective under the book to sell you on a car—sporty, thrifty, fast, and etc. Don’t take their word for it. Instead, find someone you know, whether a neighbor, a colleague, a family member, or a friend, who owns the same make and model of the vehicle, and ask them for their opinion.

2. Do a background check. One of the most unethical, but legal, things someone can do to you is sell you a used car that’s been in a flood (and sort of repaired), or one that’s had 10 previous owners (none of whom repaired it). To be sure you don’t fall victim to this, track down a history report, including a clearance check on the vehicle title. You can even get some of this information from the seller, simply by asking why they are selling it. You’d be surprised what beans people may spill.

3. Examine for past damage. Used car dealers may also try to peddle a vehicle that was wrecked in a major accident. It’s amazing what autobody experts can do to repair a car’s exterior. So don’t go by the outer appearances of a vehicle. Before you buy it, make sure that it does not have serious damage to its frame, which it would have if it was involved in a crash.

4. Call up your trusted mechanic. Used car dealers, especially the big lots, will say they put their used cars through a “100 point inspection,” or something like that. Once again, a second opinion is in order. Get this one from your own mechanic. He’ll be able to tell how good a shape the car actually is in. Also be sure to ask him or her how often the car had been serviced. A good mechanic can even gauge that.

5. Research for recalls. Needless to say, a used car dealer may sell you a car that’s actually under recall in his mad rush to get the car off his lot. So be sure to call the car manufacturer, or visit their Web site, to see if the vehicle has any active recalls.

6. Avoid the leftover lemon. Along with recalled vehicles, dealers may even perpetrate something much worse on you—sell you a lemon. (By definition, a lemon is a car that’s still under warranty, which has such major problems that, warranty or not, it still cannot be fixed in a reasonable way.) The best way to avoid this is to research in Consumer Reports or the various automobile magazines, which all have yearly reviews of every make and model on the market. They’ll tell you whether a kind of car is known for being a lemon and prone to breakdowns.

7. See through the old paint and bait. Along with performing their “100 point inspection,” car dealers may shine and wax a used car—even repaint it—to hide dents, dings, and rust spots. A keen eye, though, can see right through this.

8. Take the test drive. Once you’ve done all your research, homework, extra credit, and everything else called for in the first seven steps, then comes the fun—the test drive. Drive the car for as long as its owner or dealer will allow you. Then you’ll get a better feel for how the vehicle handles, accelerates, brakes, and otherwise suits your tastes (or doesn’t).

9. Be wary of the pushy seller. At any stage of the game—from the moment you first talk to the seller to the test drive—be careful if the seller gets pushy. Any dealer or seller who is in a rush to move a vehicle should set off bells and whistles. Why the rush? Are they hiding something? In some cases the seller may just be excited to sell you the car—and actually happy for you—but in many other cases, they may be up to something. Better be safe than sorry.

Follow these 9 simple steps to avoid the scams and pitfalls of used car deals, and you could get the car of your dreams—for far less than you’d pay if it was brand-new. Plus, you get that same high when you drive your new used car home, without losing thousands of dollars.

Tips To Avoid Car Insurance Premium Increases & Becoming Assigned Risk

Below are some tips to reduce your auto insurance bill, prevent substantial premium increases and avoid becoming assigned risk.

Claim Reports: You know about credit reports, you should also know about claim reports. C.L.U.E.® (Comprehensive Loss Underwriting Exchange), is a claim report service provided by ChoicePoint, Inc. ChoicePoint, Inc. states on their web site "C.L.U.E. is a claim history information exchange that enables insurance companies to access prior claim information in the underwriting and rating process. C.L.U.E. Personal Property reports contain up to five years of personal property claims matching the search criteria submitted by the inquiring insurance company. Data provided in C.L.U.E. reports includes policy information such as name, date of birth and policy number, and claim information such as date of loss, type of loss and amounts paid."

Tip: C.L.U.E. reports contain information on claims history by a residence address. Just like credit reports, a C.L.U.E. report may have errors. It is advisable to obtain a copy of your C.L.U.E. report at ChoiceTrust.com to check your report for errors.

Credit reports: Insurance companies are now looking at credit reports to determine future premiums. They have determined that people with better credit scores have fewer claims. Consequently, if you have a poor credit report you may find yourself paying more for car insurance.

Tip: Always make at least the minimum payment for your bills on time, particularly your insurance bill.

Glass Coverage: Most auto insurance salespeople recommend "full" glass coverage for an additional premium, when you purchase collision coverage for your car. They remind you how much it costs to replace all your windows if broken by a vandal. What they do not tell you, and it is unlikely that they would even know (I would only trust the answer from an underwriter, not a sales representative), is whether your insurance company will use a previous glass claim to increase your future premium and whether they will report your glass claims to C.L.U.E.

Some insurance companies will report glass claims to C.L.U.E. and then use these claims to raise your premium or even worse, cancel your car insurance policy making you assigned risk with a substantial premium increase. Allstate notified me that after four claims in less than five years, they terminated my auto insurance policy and then offered to sell me coverage in their Indemnity Company with a shocking premium increase. These claims consisted of two claims for a broken windshield, one for a stolen and recovered car and one accident.

I had a sports car and had to endure a total premium increase over a period of four years of approximately $12,000 and remain claim free before I became eligible for coverage outside of the assigned risk pool. I wrote a letter to the president of Allstate complaining that they should not have considered my glass claims when canceling my car insurance because the glass claims were made under a separate part of the policy for which I paid a separate and additional premium. Allstate responded in a letter stating "Although this claim activity does not indicate that you were directly at fault in each loss, the frequency and severity of the above losses was not within our range of acceptability. After careful review, I regret to inform you that we cannot reverse our original decision regarding the above policy. We have however continued to offer coverage in our Indemnity Company."

Tip: Check with the underwriting department of your insurance company to see if they will consider glass claims when assessing premiums or if they report glass claims to C.L.U.E. If yes, do not make a glass claim. The two windshields which Allstate provided me with were aftermarket windshields which would have cost me less than $300 each. During the last 30 years of my driving history, I have experienced two broken front windshields, one broken rear windshield and two broken side windows. While the financial risk of totaling a car can be substantial, the financial risk of replacing a windshield is comparatively insignificant. It does not make sense to file a glass claim if it will increase your premium. You may even want to decline this coverage altogether and save the premium.

Tip for leased vehicles: Some lease agreements require that the car be returned with an OEM windshield. If you lease a car and replace a front windshield using your "full" glass coverage, insist that the insurance company provide you with an OEM windshield from the manufacturer. If you pay for the windshield yourself, check your lease agreement carefully to see if you must use an OEM windshield from the manufacturer or if you can use an aftermarket windshield. Some people with leased cars who have replaced a windshield with an aftermarket windshield are shocked, when they return their car, to find that the leasing company is charging them $800 for a new OEM windshield, even though the aftermarket windshield is in perfect condition.

Car Rental & Towing Coverage: While it may be a good idea to have this coverage, it is not always a good idea to use it. Some people have realized that this coverage is not just available when an accident has occurred. For instance, some people have used the car rental coverage when their car was in a repair shop or the towing coverage when their car broke down on the road. As with glass coverage, using this coverage may be the same as filing a claim.

Tip: Check with the underwriting department of your insurance company to see if they will consider rental or towing claims when assessing premiums or if they report these claims to C.L.U.E. If yes, do not use car rental or towing coverage unless you have had an accident, in which case it will be part of the accident claim. If you are concerned about towing costs when your car breaks down, you can buy one of the roadside assistance memberships such as the one available from AAA which provides additional benefits not provided by your automobile insurance policy.

Auto Repair Estimates And Car Repair Prices - The Real Information To Avoid Car Repair Scams

Worrying whether or not you were overcharged for your car repair is an awful feeling. There’s tons of advice on how to avoid getting ripped-off, but few discuss the actual car repair prices. We really need to look at the charges on a car repair estimate or auto repair invoice to determine if we’re paying too much.

The focus needs to shift from giving outdated and ineffective advice to addressing the "actual" and "specific" charges. Are they legitimate charges? Can they be justified by industry guidelines?

Now car repair estimates can be confusing. So let’s break it down to get a better idea if your auto repair shop is billing you appropriately.

First, a glossary of terms is in order, as the auto industry has a language of its own…

Aftermarket Parts: parts not made by the manufacturer.

MSRP: Manufacturer's Suggested Retail Price

OEM: Original Equipment Manufacturer. Manufacturer approved parts designed specifically for your vehicle.

TSBs: Technical Service Bulletins. Notes and instructions provided by the manufacturer for known and specific concerns(they are not recalls).

Flat Fees: services such as alignments that don't get broken down into parts, tax, labor

Miscellaneous Charges: these can include, but are not limited to shop supplies - rags, chemicals, hazardous waste disposal fees, waste oil ...etc.

Labor Rate: a repair center’s hourly charge to service your vehicle

Labor Time: the amount of time or hours determined that it will take to fix your vehicle

Labor Description: the step-by-step written details of repairs and/or services

Ok, let’s look at the Anatomy of an Auto Repair Estimate:

There are six basic components to a car repair estimate

1) Customer/Vehicle Information

2) Parts

3) Labor

4) Miscellaneous Charges

5) Flat Fees

6) Summary of Charges

Customer and Vehicle Information

Using a generic “top down” style estimate, the top portion simply contains your personal information and your vehicle's specifics: year, make, model, mileage...etc, as well as your request or concern.

We also want find the shop's labor rate. The labor rate is critical in determining if you paid too much. Most repair centers don't list the labor rate. We'll discuss why shortly.

Auto Parts

Parts are listed usually with a brief description, as well as the quantity, and the price. There are three types of parts: OEM (parts made by or for a manufacturer). These are the parts installed by a dealer, although many local shops use OEM parts too.

Aftermarket parts are non OEM parts, and there are various degrees of quality, depending on the brand and where they’re made – China versus USA, for example.

Then there are Used parts purchased from a salvage yard.

To determine if you paid too much for parts, first find out what type of parts are being used. With OEM parts, you don’t want to pay more than MSRP, although most people do without realizing it. Premium aftermarket parts are similarly priced across brands, although beware not to pay more than MSRP, which again, many folks do. Used part prices are all over the place, so pick the price in the middle.

Auto Repair Labor

Labor is billed in tenths. So 1.0 equals 1 hour. 1.5 equals an hour and a half.

Labor rates range from $60 to $100 per hour at local repair shops and $80 to $140 per hour at the dealer level. Labor times are based off established industry guidelines, which are frequently abused.

If you don't see the shop's labor rate posted on the car repair invoice, ask your service center for the rate. Repair shops can manipulate the labor rate (among other things) with a labor matrix. Matrix pricing is a complicated and ethically questionable practice discussed at length in RepairTrust literature. What you need to know is that you can pay as high as $150 per hour rather than the posted labor rate of $105 per hour.

To ensure that you're being charged properly, you'll want to multiply the number of hours billed (which is also often not posted) by the shop's labor rate.

Most labor descriptions are poorly written and difficult to understand. So ask questions.

Here’s a "clear" labor description for a 30,000 mile service on a Toyota Camry.

Performed 30,000 mile service per customer request, and in accordance with manufacturer guidelines. Changed oil and filter, installed new air filter, cabin filter and performed all necessary tests, checks, and procedures, including road test (miles 30,123 – 30,125). Performed lubrication services and confirmed proper vehicle operation. Set tire pressures, and checked fluids, belts and hoses. Note: vehicle is pulling slightly left. Needs alignment

Miscellaneous Charges

The bulk of your car repair invoice will be parts and labor, but we can't forget about Miscellaneous Charges. These charges can include, but are not limited to, shop supplies - rags, chemicals, hazardous waste, disposal fees, waste oil ...etc. The latter of these may be billed out separately in a summary at the bottom of your repair invoice.

Very few of these "extras" are actually used during regular repairs. Miscellaneous charges are calculated off the amount of labor hours billed, not the amount of miscellaneous items used.

Flat Fees

Flat fees can be another very tricky area. Flat fees are services, such as an alignment, which don't get broken down into parts, tax and labor. This makes it difficult to determine the real and fair price. On the plus side, most flat fees are competitively priced.

Be warned however, another term for Flat Fee is called Menu Selling. In other words, you might see Tune Up: $99.99 or Transmission Flush: $89.99. Follow your manufacturer's recommendations only, not a dealer's or repair shop's menu.

Summary of Charges

The last part of an auto repair estimate is the summary of charges. It's usually found in the bottom right hand corner of the invoice. Check it against the charges above to ensure that it all adds up mathematically, as well as logically.

This basic estimate outline may differ from your particular invoice, which may have other categories such as "Sublet" or "HazMat."

A sublet charge is added when your auto repair shop uses another vender to fix or repair your car, such as a glass company that replaces your windshield.

A HazMat charge may include waste oil or other disposal fees. Just make sure that the charges are warranted, as again, they too are often calculated off the labor time rather than actual need.

In sum, understanding the “actual” charges, asking the right questions, and breaking down your auto repair costs is the best way to avoid paying excessive car repair prices.

How To Buy Your Dream Car And Avoid Car Dealers' Dirty Tricks

How to buy a new Car

Buying a car is usually our second biggest investment after our home purchase and most of us will do it more than once in our life.

There is something emotional about cars, it represents our taste and style, our economic status and our character. Some women even claim that a car is a man’s extension of his reproductive organ. One the other hand (the good hand) there are women out there that might express their exhibitionism and extravagance by choosing to drive a red flashy car for the whole world to notice them. Both sexes would agree they sometimes feel they ”fall in love” with a certain car model.

There are people who get very existed from a small scratch on the cars lower side, as if it were their own skin. The beauty of the car, its aerodynamics shape, the gadgets inside, the seats the feel of it all play a major part in our decision making.

In our modern life it’s almost impossible to function without one and it’s expensive to acquire, to finance and to maintain.

Buying a new car is a lot of fun, the new car has its unique smell no doubt about it, the very fact you can afford to own a brand new car is a great feeling.

When is the best time to buy a new car?

There are two "best times" to buy a car. The end of December is a good time for car buyers to buy a new car. Everyone is out buying Christmas gifts, leaving new car dealer lots void of customers, motivating dealers to cut costs, and break year end sales records. Another good time to buy a car is July to October as new car dealers sell off cars at low prices to clear space for new car models. Secret factory to dealer incentives can be $1000-$6000 in addition to new car consumer rebates!

How and where to search for prices:

Invoice price – what the dealer pays the manufacturer – has become the real negotiating point. Allowing for the dealer's need to make a profit, the price you pay should be somewhere between sticker and invoice.

Virtually all car buying sites on the Internet show invoice and in most cases their buying tools automatically add option/package invoice amounts as you work your way through the process.

Any car buyer, with very little effort, can get an accurate summation of a car's value, which immediately puts him or her in a stronger negotiating position.

Happily for the consumer, the Internet now allows a prospective buyer to uncover market conditions at any moment in various parts of the country. Search for Edmunds.com on the web.

for example, reveals the True Market Value: CarsDirect.com, which sells cars online, has its own version called Guaranteed CarsDirect price Intellichoice.com sorts out the Best Deals of the Month.

The negotiation phase and the dirty tricks:

After you made your research via the Internet, it’s important you make some phone calls to car dealers and ask for some written offers to be sent to you via the fax or email for the car of your dreams. That way, you can compare prices between several dealers without being pressured by a salesperson.

You would be much better off selling your old car yourself rather than to trade it in through the dealer because the dealer will have to earn some money on it as well.

Remember, everything is a negotiable, car too. Buying a new car is tricky from the moment you step into the car dealership arena, you might be manipulated by scam artists, well trained sales persons that will use every trick in their fat book of tricks to extort every last Dollar out of your bank account.

There is one well known trick they teach in car dealers sales courses, it’s called “throwing a lowball”, in this tactic a customer is offered a very good price on a car, Perhaps as much as $500 below competitors prices. The good deal, however, is not genuine, its only purpose is to cause a prospect to decide to buy at this dealership and not from the other dealers. Once the decision is made a raft of purchase forms are filled out, extensive financial terms are arranged. The dealer knows, customers develop a range of new reasons to support the choice they have now made.

Then something happens. All of a sudden an “error” in the calculations is discovered, It might be the salesman forgot to add in the cost of the air conditioner and if the customer insists on having it, then $500 must be added to the price...

The cover up operation is played sophistically, some times they let the bank handling the financing find the “mistake”, other times the boss is not approving the deal because “we’d be losing money”. They make it look as if it’s not that big mistake as it’s a relatively small percentage of the price of the car and as they stress out it only brings it to be equal to competitors.

The impressive thing about the lowball tactic is its ability to make a person feel pleased with a poor choice. If anyone tries to change the originally-quoted terms or talk you into buying a different vehicle, just say "no" and go somewhere else.

If you are interested to learn about many others car dealers scams and how to avoid them go to: carbuyingtips.com/scams

Until all the papers have been signed there are still ways in which a shrewd dealer may add to his profit by talking you into extras you don't want and probably don't need. These can include added and overpriced insurance, extended warranties, rust proofing (absolutely unnecessary), paint or fabric protection, anti-theft plans, and more. Smile and firmly turn them all down.

Finally, before you drive away, do a careful inspection of the car, looking for scratches or dents; anything that mars the perfect finish. If you're not happy, get a written agreement (known as a Due Bill). It means you have the right to later return the vehicle in order that flaws can be corrected.

Buying A Second Hand Car? 19 Tips To Avoid Getting Your Fingers Burnt.

• Do your homework. Read up about the model of car you're thinking about. Will it perform as you will want? Be aware of any known mechanical problems with that particular model and remember to check them out when you take it for a test drive (see tip 15).

• Look up the current second hand values for the car. Try starting at www.what car .com. Also get some of the second hand car magazines and your local paper. Check out the prices being asked for similar cars.

• Car Insurance is always a major expense. How much will that car cost you to insure? It's easy to find out on the Internet – get a few quotes. It'll just take you ten minutes.

• Also check out the car's other running costs. We're talking about fuel consumption, servicing and repair bills. Again www.what car .com can help. Ensure you can afford to run the car!

• When you see the car insist on seeing its registration documents and, if the car is more than 3 years old, its MOT certificate. The registration documents will also show the cars' VIN number. Carefully check that the documents tally.

• Always ensure that the person selling the car does actually own it.

• And always see the car at the seller's own home or business premises. Then ensure that the address on the Registration Document is at the same as the address - if not ask why. You should be suspicious.

• Examine the Road Tax disc. Is it still valid? Does the vehicle registration number on the disc match the Registration Document and the number on its number plate?

• Ask to view the cars' Servicing Record. Usually, this will also show the cars' VIN number and details of the first owner. If the Service record is not available, has the owner kept any of the service or repair bills? Ask to see them.

• Now look under the bonnet and look for the VIN Number (it could also be on a plate on the inside edge of one of the front doors). Compare the VIN number with the number on the Registration Document and check that the number stamped on the car has not been interfered with. This will help to ensure that the car hasn't had its identity changed.

• It's best to take a friend with you who knows' about cars – not only to look at the car but also to be a witness for what is said and anything that is agreed.

• Don't pay for a car on your first visit and try not to be pushed into putting down a deposit. You need to carry out some checks before you part with any money (see 17 below).

• Ask the owner whether the car is subject to any outstanding finance. Take notes of what he/she says. Then, when you get home, get on the Internet and check out the information provided with RAC Vehicle Status Check. Go to the RAC' web site. Click on “Car Buying” and then “Vehicle Status Checks”. The Status Check will cost you £24.99 but it will confirm whether the car has outstanding finance. Best to be safe – without this Check you could find out that a finance company actually has a prior title to the car.

• Carefully examine the car in good daylight. Look carefully for signs of repairs and accident damage. If you have followed our advice and obtained a Vehicle Status Check, that Check will also notify you if the car has previously been “written off”.

• Try to ensure that the car hasn't been “clocked”. (Clocked means that the mileometer has been wound back to show a lower mileage.) The average annual mileage is around 12,000. Be wary if the wear and tear on the car looks greater than you would expect from the mileage. The wear on the driver's pedals is usually a give away. Then ask when the tyres were last replaced. Does the wear on the tyres look about right?

• Insist on test-driving the car for at least 10/15 miles. You need to get the car fully warmed up and drive it in varying conditions. Incidentally, don't forget to ensure you are insured to drive it! Don't assume that your own insurance policy will cover you for driving someone else's car. Check your policy before you leave home. If the seller claims that his insurance covers you, ask to see his policy – a bit of a pain but better safe than sorry!

• Has the car ticked all the boxes so far? Then spend some more money get it professionally inspected.

• Never pay any money until you have seen the results of the RAC Vehicle Status Check. And even then, avoid paying any money until the car is handed over to you complete with its Documents and tax disc. Always get a written receipt for any money you pay and ensure that it includes the sellers name and address.

• Last of all, make sure you're insured from the moment you drive the car away. The Police can now impound, and ultimately scrap, your car if you're driving it without insurance or road tax! If the car has not got Road Tax disc, call in at the Post Office on the way home and get one. You'll need to show them a valid insurance cover note for the car and the cars up to date MOT Certificate.

If you've followed all these steps you'll have done just about everything possible to ensure the car is legally yours at the right price, and you haven't bought a scrapper!

Car Buying Tips: Five Things You Need To Know To Avoid Hidden Fees And Additional Costs

Before purchasing your next car, you're going to want to check for hidden costs, add-on fees, and other charges. You could end up spending hundreds, even thousands, of dollars over the lifetime of your loan.

Once you've found the car you want, it's time to sit down with your sales rep to negotiate the terms of your contract. After a little back and forth on price, figuring out your interest rate, and calculating your monthly payment, you're ready to sign on the dotted line, right?

Not so fast.

When you read the fine print you may find that additional fees and charges have found their way into your contract – including add-ons you didn't necessarily ask for.

Most car buyers are so focused on getting the best interest rate and negotiating the most affordable monthly payment that they're unconcerned with the fine print of the contract. By the time they get to the step where they review and sign the paperwork, if the sales rep is throwing industry terms at them that they don't fully understand, they're becoming exhausted from the entire process and just want to get it over with.

Here are a few insider tips to make sure you don't regret signing those papers.

1.) Read the Fine Print

While this seems pretty obvious and self-explanatory, it's amazing how trusting the consumer can be. Honestly, the last time you bought a car, did you read and fully understand the contract before you signed it? Probably not. Most people don't.

Some unscrupulous car dealerships are betting on that. Because most people don't read the fine print, some sales reps can slide in additional, undisclosed charges or extras with huge mark-ups to their profit.

Also, make sure there are no blank spaces on your finance contract that can be filled in later – wherever there are blank spaces, write in "$0" or "N/A."

2.) Typical Extras

Most of us are familiar with learning about the standard features of an automobile and then figuring out which additional features we are willing to pay extra for, but here are some extras to look out for when reviewing your contract:

• Rust proofing

• Extended warranty

• Fabric protector

• Car alarm (including Lojack, a device police use to find your car if you report it stolen)

• Paint sealant

• Credit life insurance

• GAP

• Window etching

The value of such extras depends on individual customer needs and situations. If the sales rep attempts to tell you that some or all of these extras are standard for every vehicle on the lot, ask to order your car from the factory, or suggest the dealership trade with another dealer that hasn't pre-packaged their vehicles.

Extra products can add thousands to the negotiated price of the vehicle. Most products fill a customer need that when priced and disclosed correctly and can add real value to the whole transaction.

The problems with extras occur in two areas. First, when the sales rep doesn't spend the time necessary to determine which products fit the specific needs of the customer. Rather than suggest specific extras individually priced, the sales rep lumps all the products together and pushes you to buy them as a package.

Second, unscrupulous sales reps can add thousands of dollars to the amount financed for these products, but not disclose the price increase until the last possible moment, when the financing contracts are being signed.

3.) Documentation and Administration Fees

Federal, state, and local governments are pushing more and more of their regulatory cost onto the local dealerships. In an effort to offset some of these fees and services dealers are required to perform, most add, a documentation or administration fee to the total cost of the transaction. Depending on state and local regulations, fee adding $100 to $150 seem reasonable and cover most of these additional items. These services include:

• Duplicate Title Fees

• Notice of Security Interest (to perfect lien)

• 30-day Permits

• Federal terrorist matching data bases

• Federal information privacy requirements

• State vehicle id verification

• Highway Patrol Inspections for out-of-state titles

• Registering leases at customer's county of residence

• Carfax

• FedEx charges/Shipping charges

• Additional title addendums

• Truth in lending record retention

Some dealers have taken up the practice of marking up documentation and administrative fees and are now charging as high as $300 to $500 per sale. A few are even higher. The charge for most of these fees seems to be more based on getting a customer to pay extra after the customer has finished negotiating, not the average amount it cost to get most deals through various state and federal regulations, as implied.

4.) Ask for a Menu System Disclosure

The best disclosure method I've seen in years involved using a menu system. On a separate sheet of paper the rep produces a document that includes:

1.) The negotiated price of the vehicle or trade difference

2.) The additional price of suggested extras (these can be shown as various option packages that may save money when bought in combination and as individually priced options)

3.) New totals initialed by both parties

This procedure makes sure that any suggested extras are properly explained and disclosed. It also allows the customer time to consider each item separate from the longer and potentially confusing finance documents. The final numbers from the menu should get carried over directly to the finance document.

5.) Other Costs

When buying a car, remember that there are other "hidden" costs (or, costs that aren't usually considered), that go beyond the dealership.

During the lifetime of your vehicle, you're going to have to pay for registration and tags, taxes, insurance, oil changes and fuel every year, and periodically pay for maintenance and repairs. Older models (cars more than 3-5 years old) may cost less up front, but you will likely need to factor more maintenance and repair costs into your budget than if you bought a newer model. While new models need fewer repairs and maintenance work, you will have to pay more up front.

Your wallet does not have to go through the ringer the next time you decide to visit a new or used car dealer. You can protect yourself from blindly signing into an unfavorable car deal by doing your homework, going to a car dealership with a good reputation, being prepared, asking questions, and double checking behind your sales rep.