Consumer Affairs Office

Buying a Vehicle

Checklist | Hitting Close to Home | FAQ

Checklist

• Look at your monthly budget and determine how much total (car payment, gas, and insurance) you can afford to spend per month

• Determine your needs (2-seater, 4-seater, towing capabilities, etc)

• Shop around for financing (get pre-approved for the amount that is your high limit)

• Go car shopping. Go to several dealers and narrow your search down to a few vehicles. Write down the VIN numbers and important information for each vehicle. Bring this information to Consumer Affairs Office and we will provide the history of the car for free ( CarFax would cost you $25 otherwise).

• Shop around for insurance. Price all of the vehicles that you are looking at so that you have a better idea of your monthly commitment with each one. Never finance insurance in with your vehicle purchase.

• Print out Kelley Blue Book and/or NADA value of the cars.

• It is the consumer’s responsibility to have vehicle checked out if it is used. You can arrange to have a mechanic diagnose any problems with the vehicle, usually for under $100.

• Decide if you want to purchase a warranty. Ensure that you read the fine print on after-market warranties (when the 3 yr/36,000 mile runs out). You need to understand what situations would cause coverage to be denied.

• If you are trading in, print out the blue book value of your trade-in.

• Take all of this paperwork out with you and negotiate with the dealers for the lowest price. Get them to draw up a contract with this price and take it home with you.

• Choose which vehicle best fits your needs, wants, and price range.

• Have someone look over the contract for you (CAO does this for you) prior to signing.

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Hitting Close to Home

• A Soldier purchased a used vehicle from his last duty station. He did not purchase a CarFax, and started having mechanical problems. When he came into the CAO, we printed a CarFax for him, and found that it had been in a severe to moderate accident. This information did not have to be disclosed at the time of the sale. It is the consumer’s responsibility to have the vehicle checked out by a mechanic prior to purchase.

• A Soldier purchased a vehicle from a used car dealership. The vehicle’s price was nearly $6,000 over the Blue Book value in addition to being financed at nearly 18% APR. The Soldier purchased additional options such as service contract, insurance, etc. By the end of the loan term, the Soldier will have paid nearly three times the value of the car.
  

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Frequently Asked Questions

Q. What if I decide that I no longer want a vehicle that I purchased two days ago?
A. There is no “grace period” in Tennessee or Kentucky. When you sign the contract, the dealership does not have to take the vehicle back.

Q. What if my vehicle breaks down right after I bought it?
A. The consumer is responsible for checking out a vehicle before they make the purchase. The seller does not have to disclose prior accidents.

Q. Why is my interest rate so high?
A. For first time buyers or people with poor credit, your interest rate will be higher than the national average. Many banks have first time buyer programs, and the MILES (Military Installment Loan and Educational Services) Program aim to assist these buyers in purchasing a vehicle. Ensure that you shop around for your financing in order to ensure that you are getting the lowest possible interest rate.

Q. My vehicle has a service contract, but the mechanic said that it does not cover the parts that I need to make the repairs.
A. You need to read the fine print on your service contract before purchasing it. Most service contracts have stipulations that cause some problems not to be covered. For example, if the reason that your engine seized was that you did not have regular oil changes (and kept your receipts to prove it), the parts will not be covered by many service contracts. Make sure that you read the contract carefully so that you keep your contract from being voided.

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