Buying or Leasing a Car?

Buying a Car

1. Remember that there is no three-day cooling-off period or cancellation rights when purchasing a new or used vehicle. Once you sign the contract, you own the car and are obligated to make all payments.
2. Buying a car is a negotiated transaction. Actually it's several distinct negotiated transactions, including:
    
   1. buying a car;
   2. selling your trade-in;
   3. arranging for financing; and
   4. potentially buying other products and services such as vehicle protection packages, extended service contracts, etc.
3. Know how much your trade-in is worth by checking the Kelly Blue Book or the National Auto Dealers Association (NADA) Used Car Pricing Guide (Pacific Northwest edition) available at your bank or local library.
4. Know how much you can afford to spend before you go shopping and compare financing terms between the dealers' bank and credit union.
5. Information on actual dealer cost is available through Consumer Union or The Car Book, available at most libraries. Used car wholesale and retail prices are available through the Relly Blue Book and the tv; NADA Used Car Pricing Guide.
6. Take a thorough test drive. Operate the vehicle as you would in normal use.
7. Always have used vehicles thoroughly inspected by an independent mechanic of your choice prior to agreeing to purchase the vehicle.
8. Get all promises in writing. Read and understand every document you sign. Don't sign anything with blank spaces. Your signature binds you contractually to make all payments.
9. Check out the history of used vehicles by requesting the name and address of the prior owner from the dealer. Dealers are required to provide it to you if you are a prospective purchaser.
10. Buying a car "as is" means you, not the dealer, are going to pay for the repairs.

Auto Leases

1. There is no three-day cooling off period or cancellation rights when leasing or purchasing a new or used vehicle. Once you sign the contract, you are obligated to make all payments.
2. If you intend to ultimately own the vehicle, consider purchasing on credit. It is often more expensive to lease then exercise the purchase option than to have purchased the vehicle outright.
3. Request disclosure of the capitalized cost and finance rate. Negotiate for the lowest capitalized cost and financing rate possible.
4. Obtain full accounting of all rebates, cash down, trade-in value, and all other payments applied to the lease.
5. You should not purchase extended warranties which duplicate the manufacturers warranty or provide coverage beyond the lease term of the vehicle.
6. Based on clear, accurate and complete information, compare total cost to lease or purchase the vehicle.
7. Know the value of your trade-in vehicle by checking the wholesale and retail prices in the Kelly Blue Book or the National Auto Dealers Association (NADA) Used Car Pricing Guide (Pacific Northwest edition), available at banks, credit unions or the library. Insist that your trade-in be accounted for in the lease transaction.
8. Be aware that early termination of a lease is an expensive proposition. You can't just turn the car in early and walk away.
9. Do not sign a lease agreement until you have read and understood all of its terms.
10. Do not allow the dealer to "pack" extra products and services such as extended service contracts and credit and disability life insurance into your lease payment without your agreement to do so.