Does "As Is" Really Mean "As Is?"
Hi Tony,
I hope you can answer this question for me on what we should do in this situation. We sold a 1993 Dodge Shadow for $200 through a private sale in "as is condition". Now 24 hrs later the buyer says he took it to the garage and the frame is cracked. We had absolutely no idea about this problem.
We were very honest with the buyer and told him of all problems associated with the car, as it had been parked for almost a year. Now I don't have the full $200, as I've made some purchases and did not expect this to be an issue. I'm torn though because although I would like to give him his money back, I don't have it and we did agree to $200 "as is." What do we do??
Very confused in New Brunswick,
Pauline C.
Hi Pauline,
Listen, I'm not a lawyer so I can't give you any legal advice. I have no idea what your state's laws are regarding this. However, if you have something in writing signed by the buyer saying that he knew the car was "as is" then I would think you should be OK. I don't know for sure though.
The best thing you can do is explain to the buyer that you would like to give him his money back, but you don't have it. "As is" means what it says. If he agreed to that then I don't see what his beef is.
All my very best . . .
Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/
Do You Have to Show Proof of Income When Getting a Car Loan?
Dear Tony:
I am a nanny right now and my employers pay me under the table. I make approximately $37,000 a year. I currently have a 1998 Ford Mustang that is financed through Alaska Federal Credit Union and the balance is $4,800.00. I also have an account with Ford Motor Credit for $500.00. I want to trade my car in for a Subaru Forester.
My dad says that I will not be able to get a loan because I do not have verifiable income. Is this true? Should I not even attempt to do the trade in? The other thought is that I could get a temporary office job along with my Nanny job. Would that help? Your thoughts and advice would be much appreciated.
Thank you,
KERRI D.
Hi Kerri,
In the majority of the cases when you get a car loan you don't have to show proof of income. When I was working as a Finance Manager I arranged hundreds of loans for people without them having to prove their income. One thing to remember however, if you allow the dealer to arrange financing do not give the dealership any money and do not surrender your trade until they can prove to you that your new car loan is approved by the lending institution. They have been known to make people believe their loan is approved when it isn't, and then the customer runs into problems two or three weeks later when they can't get a loan and their trade is long gone. So be careful.
Your best bet is to arrange your own financing right through the credit union where your trade is. If Ford Motor Credit approves you they're good to deal with too, but the approval has to be arranged by the dealer. Ask for a copy of the approval from Ford before you turn over your trade.
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/
How Does One Establish Credit for the First Time?
Hey Tony,
I've recently been turned down for a couple of auto loans in my quest for a newer car than what I have. I'm being told that I don't have any solid payment history on my credit. Basically, I'm a young man fresh out of college so I don't really have much credit history. One of the main reasons I want to purchase a car is to build my credit; so I'll have a chance at buying a house or do whatever else I need to. The car I have now is reliable and I don't have a problem keeping it. My question to you is this...for the purpose of building credit, is buying a car and financing a loan the best and fastest way to build one's credit? Please tell me what you think. I don't mind keeping my old car, but I need to get credit. What do I do?
Thanks in advance,
Frank
Hi Frank,
There are many ways to build credit. Start out by getting a credit card for example. It takes time to build a credit history, so you must be patient. Some new car manufacturers have special financing plans for recent college grads on new cars. You can look into these with Ford, GM or Chrysler.
Another way to get started with a car loan is to have someone with established credit co-sign on a loan for you. As long as you make all your payments on time the co-signer should be just a one time thing.
Good luck...
Tony Iorio http://www.InsiderCarSecrets.comhttp://www.Car-Loan-Quotes.comhttp://www.Used-Car-Warranty.comhttp://www.GreatCreditCardDeals.com
Is This Car Dealer Lying to This Customer?
Hi Tony,
I was at the largest Honda dealer on the planet yesterday.
They told me the car I was interested in was going to auction tomorrow or the next day. They said they are not allowed to keep a car more than 60 days and they would rather see me driving it than selling it to auction.
They said the price they bought the car for was $4,000 above Edmunds TMV.
Wouldn’t it seem they would rather lose as little money as possible on this car by selling it to me at a price below Edmunds TMV rather than paying auction and transportation fees? If the car was going to auction, it would probably be bought by another dealer who will have to buy it less than Edmunds TMV in order to have a profit margin built in.
So my real question is, where can I find typical sale values for the Honda Odyssey at wholesale auction?
Very truly yours,
Marsh C. S.
Hi Marsh,
It could be they were telling you the truth about the car going to auction. It's important for a dealer to continually turn their inventory. 60 days is about average for most dealers. It could have also been a line of crap to get you to make a quick decision. They are definitely lying to you about the $4,000 over! There's no way they paid that much for the vehicle. That's reason enough right there to not deal with them. The only place you can get what dealers are actually paying at auction is from a dealer who has a subscription to Black Book. It's only available to dealers, and it tracks wholesale prices based on what dealers are actually paying. Perhaps somebody in a car dealership will let you look at a copy.
All my very best...
Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/
Some Information About Car Dealer "Doc Fees" Charged on New & Used Car Deals!
Hi Tony,
I stumbled upon your website, and I was grateful for all the tips you generously give on your website! I have not read all the contents on your website yet, therefore I am not sure if other people have asked you this question before.
My question is if I am buying a new car, How much do car dealers (salesman) charge the customer for the registration and licensing, etc.? Do they rip people off on that too? Is it a lot of hassle to do it yourself? What tips do you have on this?
I would appreciate it if you could give me some information on that.
Best Regards,
Dennis C. Provo, UT
Hi Dennis,
Title, registration and licensing fees are different in each locality. They are dictated by state, county and local laws. In addition to these fees many dealers charge additional fees to cover document prep and notary fees. All these fees are legitimate. Some dealers do take advantage and charge extra fees.
If you think a dealer is over-charging you complain about it, and contact your local license bureau to find out what's legitimate and what's not.
And no, you can't do it yourself. The selling dealer has to handle the legalities of each transaction.
All my very best...
Tony Iorio
http://www.insidercarsecrets.com/
http://www.car-loan-quotes.com/
http://www.used-car-warranty.com/
http://www.greatcreditcarddeals.com/
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
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
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
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
