Customer Buys Used Truck With Worn Tires From Car Dealership, Now They Wonder if Dealer Can do This!

Hi Tony,

My son just purchased a 2003 Chevy Silverado 4x4 from a local car dealership in our town. The tires on it are quite bald, and I was just wondering if the car dealership is allowed to sell a vehicle with tires in such poor condition. Thank you for taking the time to read my e-mail.

Blanche

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Hi Blanche,

I don't know the laws in your state and local area pertaining to this situation, but your son had the opportunity to look the truck over before he bought it. If the tires were in question the time to address the problem would have been before he signed the buyer's contract. Even if the dealer gave him some kind of warranty on the vehicle It's not going to cover worn out tires.

He's going to have to buy a new set of tires and chalk it up to experience. I'll bet that the next time he buys a vehicle the tires will be the first thing he looks at!

It certainly couldn't hurt to contact the Used Car Manager and complain. I'm sure he'll at least arrange for your son to buy a set of tires at the dealer's cost. That might save him a couple of dollars.

All my very best to you and may God bless you...

Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/

Should I Continue to Make Payments on My Car Loan, or Trade it in Now?

Hi Tony -

I have a question for ya . . . I have a 2002 VW Beetle that is not in any good shape at all - it's been in an accident, and I have a dog so I trashed it a bit. Anyhow --it's almost paid off -I owe about 10 more payments on the car loan. Anyway - I'd like another car - I can afford the same amount in car payments a month . . . I'm wondering if I should trade my car into the car dealer where I got it and get a new one, or wait the 10 months to try that? Also, I paid my car payments all on time - but otherwise don't have great credit. Do I have any options here?

Tina

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Hi Tina,

It's always better to pay off a vehicle completely before you sell it or trade it. That way whatever you get for it will go towards the new vehicle rather than paying off the old car loan. In fact, the ideal thing is to drive the car for a while after the car loan is paid off. Instead of making a car payment every month you get to save a few bucks each month.

After all, the car is only 6 years old. That's not so bad. Of course, that all depends on the condition of the car. If it is reliable and runs good I would consider keeping it for a while longer. Also, whenever you decide to buy another car you will get more for your car by selling it privately as opposed to trading it.

As far as your credit goes, as long as you make all your payments on time the bank where your loan is now should give you a new loan.

All my very best and may God bless you richly. . .

Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/

Do You Need a License to be a Car Dealer? Huh?

Hi,

If you're a car dealer, is it illegal to sell a used car to someone that has no insurance at the time of purchase? Does a car dealer need a license to sell a car?

Thanks,

Mike

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Hi Mike,

You can't be a car dealer unless you are licensed with your state and with your county and or city. Laws vary from state to state, but in most states it's illegal for a licensed dealer to sell a vehicle to someone who doesn't have car insurance before taking the car off the lot.

Take care,

Tony Iorio
http://www.InsiderCarSecrets.com
http://www.Car-Loan-Quotes.com
http://www.Used-Car-Warranty.com
http://www.GreatCreditCardDeals.com

Don't Get Busted For Sales Tax Evasion!

Tony,

I have a 2001 Audi A4 I bought a few months ago from a private seller in NY, but did not register yet in my state. I now want to sell it to a private party. I have the title with the seller's name on it and have signed the back. Do I need to register the car and get a title in my state in my name to sell it?

Thanks,

RJ

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Hi RJ,

Legally you have to transfer the title into your name and pay sales tax on the car. You can then sell the car to a new owner who will have to do the same in order to be legal.

If you skip over yourself from the previous owner to your buyer you are taking a chance of getting in trouble for sales tax evasion. Don't do it!

Take care,

Tony Iorio
http://www.InsiderCarSecrets.com
http://www.Car-Loan-Quotes.com
http://www.Used-Car-Warranty.com
http://www.GreatCreditCardDeals.com

What Exactly is a "Factory Demo?"

Hello Tony,

I've found your website very helpful. I wish I had found it earlier. My question is: what does "factory demo" mean? How is it used? I bought a car and was told I got all of the perks, namely a full warranty and service plan, because the car was a "factory demo" and was within the BMW family.

I just found out that my warranty and service plan didn't start from the date I bought the car from BMW but when it came off of the factory floor. I was shocked. "Factory demo" was used to hook me into believing I was buying a car with all of the perks of a new one. Buyer beware. I know. But if you could explain how "factory demo" is used by car dealers it would greatly help my understanding of how these folks operate and possibly help my small claims court case.

Thank you!

Jennifer J

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Hi Jennifer,

"Factory Demo" is another term for "Program Cars." To find out more about "Program Cars" visit my website at: http://www.insidercarsecrets.com/programcars.html These cars usually have the remainder of the factory warranty, but the actual factory warranty always starts when the vehicle is actually put into service by the original owner. The salesman should have informed you of when the warranty started by giving you the original in-service date of the car. It's like you said: "Buyer beware." You cannot be too informed when purchasing a car.

Take care . . .

Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/

Dealer Holdback on New Cars!

Tony,

That is very nice of you to pass this information on to the general public about buying a new car, but you should also metion that dealer holdback pays for the interest cost on that vehicle.

Sometimes in the car business vehicles can sit on your lot for 3-6 months before they sell. When it comes to invoice pricing the only person that sees my invoice is a registered vehicle dealer. The profit margins on new cars is less then 20% of the selling price.

Robert J.
Sales Manager, Autoworld Kia

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Hi Robert,

Click on the following link that takes you to the "Dealer Holdback" page on my website: http://www.insidercarsecrets.com/dealerholdback.html If you read it you'll see that I make your point for you.

Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/

This Poor Guy is Paying 34% Interest!

Hi Tony,

I recently bought a 2002 Toyota Corrola for $9,000. The interest on the loan was 34.04%. Long story short I owe $19,000! I recently called to check the"payoff" on the car and they said that it was $12,000. I dontknow what's going on.

Is this even possible? What should I do? I'm trying to pay it all off and get a lower APR, but I certently dont want to pay $12,000 on a car that is not even worth $9,000.

Can you PLEASE give me some advise on what I should do?

Thaks a lot,

Manuel F.

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Hi Manuel,

Your payoff reflects the price you originally paid for the car plus the sales tax and the title fees. There may also be an extended warranty and or credit life insurance, credit disability insurance and gap insurance that the dealer added to your loan. All of these things will raise your car's payoff.

A warranty and these insurance coverage's are cancelable, and will reduce your total payoff. Read the loan contract to see exactly what they added on.

There may also be an early payoff penalty by the lending institution added in. Read the fine print on the loan contract to find out. If you don't have your copy of the loan contract, or you don't understand it contact the lending company and ask them to go over it all for you.

All my very best to you...

Tony Iorio
http://www.InsiderCarSecrets.com
http://www.Car-Loan-Quotes.com
http://www.Used-Car-Warranty.com
http://www.GreatCreditCardDeals.com

Can You Pay the Principle Only on a Car Loan?

Tony,

I once heard that if you pay on your car loan every fifteen days that your money goes towards the vehicle principle and not the intrest. Is this true?

Thanks,

James

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Hi James,

I've heard of this with mortgage loans, but never with car loans. Contact your car loan lending institution and ask them if they have any such programs.

All my best...

Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/

What to do When Sold a Car That Has Been Wrecked!

Tony:

I wanted to ask your opinion on a matter. I purchased a 2005 Cadillac CTS from a private seller. This seller represented the car as unflawed and in like new condition, which based on appearance it was. After owning the car for two weeks I took the car to a local dealer to have two recall repairs performed. The dealer informed me the car had been in a wreck, trunk removed and repainted from the doors back. It seems this is why the mileage was so low on the car and not because, as the seller claimed, he and his wife rarely drove it. I had asked the seller if there was anything ever wrong with the car and the response was no.

Needless to say I am extremely disappointed in how this vehicle was represented. Under the law and in your opinion, is there any legal action I may take against the seller? Would it not be against the law to omit disclosure of such a fact?

The purchase price for the car was $22,000 which is fair market value for an vehicle with no accident history. With an accident history, I presume it is much lower. I have incriminating e-mail correspondence with the seller's agent (a friend of his who listed the car for him) as well as the original listing on e-bay.

Please let me know if you believe this matter has merit in pursuing and thank you for your time.

Steve

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Hi Steve,

I can't give you legal advice as I am not an attorney, but I don't believe a private seller is obligated to disclose any previous damage, if indeed he knew about it in the first place.

However, if you purchased the car through eBay you may have some recourse through them. Go to eBay and read through their help information pertaining to your situation. I don't know if they can help you or not. I do know they are very interested in making sure their customers don't get ripped off.

You may also want to contact your state's Attorney General's office for advice. In the end your only recourse may be to consult an attorney on this.

Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/

Can You Avoid a Credit Check?

Good day!

I recently purchased a vehicle and I do not plan on making any major purchases for a while, however, I was trying to established some cable TV and am being asked to provide my social security number so companies are able to run a credit report.

When did they start doing that? How will their inquires affect my credit? What are they looking for. Can applying for cable TV or the DISH be done without given such information?

Tamara J.

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Hi Tamara,

Some companies such as TV Dish companies and cell phone companies routinely run a credit report when you apply for service. It's how they determine if you are credit-worthy enough to live up to your monthly payment obligations.

An excessive number of credit inquiries will lower your credit score slightly, so be wise when applying for credit and other services. I really don't know if you can apply for cable or Dish without giving your social security #. I guess it depends on the company. Voice your concerns to them, and maybe they will forgo the credit check.

Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/

The Age Old Question: "Can I Back Out of a Car Deal?"

Tony,

A week ago I went to a car dealer in the evening and test drove a truck. I liked it, but had to take a flight out the next morning, so I could not take delivery of it. I paid cash and signed all the paperwork, but have not yet taken delivery of the truck. Am I stuck with the deal, or do I still have an "out" since I have not taken delivery?

Thanks,
Kirk Hunt

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Hi Kirk,

It all depends on what you signed, and whether the car dealer will hold you to the letter of it. I suggest you communicate with the Sales Manager (not the salesman or the Finance Manager) right away and discuss the matter.

If they won't cooperate you will have one heck of a time getting all your money back. Next time you buy a vehicle take your time making a decision and be sure of what you are doing.

Tony Iorio

http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/