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What is the most important thing to know about a used car before you make the purchase?
The history of the car
The most important thing about buying a used car is that you know everything about the history of the car, including: the number of previous owners, if the car was ever involved in an accident, any previous mechanical problems and the maintenance history of the car.
The color of the car
The size of the engine
Because high mileage can decrease the selling price of a used car, some unscrupulous people "roll back" the mileage. What is this illegal practice known as?
A used car's mileage affects its selling price. For instance, the more miles the car has logged, the lower the cost of the car. Because high mileage can decrease the selling price, some unscrupulous people practice odometer fraud. Although it's a crime to try to "roll back" or change the odometer reading, that doesn't stop people from doing it.
What is considered "reasonable mileage" for a used car?
12,000 miles total
12,000 miles per month
12,000 miles per year
The listed prices are usually for cars that are in good condition with "reasonable mileage" -- about 12,000 miles per year. If a car has a much higher mileage or if it's in poor condition, the sale price should be lower than what's listed in the guide.
What does MSRP stand for?
Manufacturer Suggested Rate Plan
Manufacturer Suggested Retail Price
When you're just starting out, a good first step is to go to the manufacturers' Web sites to check out the cars and the available options. You can usually find local dealers and request quotes or see the Manufacturer Suggested Retail Price (MSRP).
Manufacturer Suggested Ranking Place
What is one document that you should never sign when purchasing a used car?
A vehicle history report
A loan agreement
An "As Is" statement
Never sign an "As Is" statement. Many used car dealers will mix that in with the other paperwork you'll be asked to sign. As with anything that requires a signature, READ BEFORE YOU SIGN. You should have at least 30 days to make sure the car is in good condition. If you sign an "As Is" statement, once you drive the vehicle off the lot, anything that goes wrong is your problem.
There are two times of the year in which you will get the best price on a car. When is considered to be the best time?
The last two weeks of December and July to October
There are two times of the year in which you will get the best price on a car: the last two weeks of December and July to October.
The first two weeks of the year and the end of May
The entire month of March and the first week of December
What is the sticker price of a vehicle?
The Manufacturer Suggested Retail Price
What the dealer would like you to pay
The sticker price (or intended retail price) is what the dealer would like you to pay. It includes the MSRP, additional options and accessories and the delivery or destination charge.
The price of the window sticker itself
What is a common term for a bad car?
If you feel that you have been sold a "lemon" or a bad car, you do have recourse. All states have "lemon laws" that pertain to new car purchases. These laws allow you to take action against a dealer for selling you a bad car. If you feel you have been cheated, find out what you can do about it by visiting the Better Business Bureau Law Program.
What does APR stand for?
Annual Percentage Rate
The low Annual Percentage Rates (APR) that dealerships and car companies advertise on television are the interest rates the dealer charges for financing. Often, those low rates are only for people with perfect credit or they are an introductory rate, meaning they will go up after a certain period of time.
Average Principle Rate
Annual Primary Rate
What are two items that you should never give to the dealer?
Your license or social security number
Don't give the dealer your license or social security number.
Your home address or zip code
Your insurance information or license plate number