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Buying Tips
10 Steps to Buying a Used Car
Step 10: Closing the deal.
By Philip Reed, Senior Consumer Advice Editor
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If you are at a dealership, you still have to go through the finance and insurance
(F&I) process. If you are buying a car from a private party, you have to make
sure that payment is made and the title and registration are properly transferred.
In both cases, you also need to make sure you have insurance for the car you just
bought before you drive it away. Also, the F&I person will probably try to sell
you a number of additional items: an extended warranty, alarms or anti-theft services
such as LoJack, prepaid service plans, fabric protection, rust proofing and emergency
roadside kits. Some people swear by extended warranties, so this is something
you might want to consider (unless your used car is certified or still under the
manufacturer's warranty). However, the other items typically sold in the F&I room
are expensive and hold little value for you.
The F&I person may seem like a financial advisor, but he or she is really an experienced
salesperson. Some F&I people can become very persistent trying to sell these items.
Be firm. Say, "I'm not interested in any aftermarket extras, thank you. I just
want the car."
Once the contract is ready, review it thoroughly. In most states, it will contain
the cost of the vehicle, a documentation fee, a smog fee, a small charge for a
smog certificate, sales tax and license fees (also known as DMV fees). Make sure
you understand the charges and question the appearance of any significant, sudden
additions to the contract.
Finally, you should inspect the car before you take possession of it. If any repair
work is required, and has been promised by the dealer, get it in writing in a
"Due Bill." Make sure the temporary registration has been put in the proper place
and — you're finally on your way.
When you buy a car from a private party, you will probably be asked to pay with
a cashier's check or in cash. But before money changes hands, request the title
(sometimes called the "pink slip") and have it signed over to you. Rules governing
vehicle registration and licensing vary from state to state. Check with the DMV
in your state (much of this information is now available on DMV Web sites).
Once all of the paperwork is complete, it is finally time to relax and begin enjoying
your new purchase: a good used car.
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