Entries Tagged '10 Tough Questions to Ask BEFORE you Buy a Used Car' ↓

What is my FICO credit score?

It’s not uncommon for dealers to tell you that you have worse credit than you actually do. This allows them to penalize you with higher rates, which allows them to make more money.  This is pulled on people with good credit too, as it works well because most people do not know their own credit score. It’s funny, most people know their own blood pressure and their cholesterol levels, but they don’t know their credit score.

If a dealer won’t show you a copy of your credit score they are using (from one of the 3 major credit bureaus), LEAVE (They can’t give you a copy of your credit bureau, but they can show you your 3-digit FICO score).  Note:  If they pull multiple credit bureaus, demand to see all of your scores!

A friend of mine recently bought a car recently from and was told by the finance manager at a competitor’s store that “He had never seen anything quite like this.”  My friend was told that his credit score was only 660 and that “His rate would be affected negatively.”  In fact, his Trans Union score (which most Kansas lenders used) was 709 (anything over 700 is generally preferred rates).  The finance manager told my friend he was only a 660 score, quoting his Experian score.  While this was not a lie, it was an omission of facts that cost my friend thousands of dollars in unnecessary finance charges.

The three credit bureaus utilize the FICO score or credit score as part of their overall credit reporting to lenders.  In Fact, there are many today who actually look no further than the FICO or credit score.  In other words, if your FICO score is below a certain level, you will not be considered for a loan by certain lenders.  On the other hand, if your FICO or credit score is above a certain level, the doors to certain lenders automatically will swing open.

At Suzuki of Wichita we will tell you what your score is and provide a team of experts to give you with all the facts you need to make an intelligent decision.  We have created many helpful publications which will help you understand what your credit score means.  Contact us to receive these publications at No Charge.

10 Tough Questions to Ask BEFORE You Buy a Used Car

Do you have any Money Back Guarantees?

Caveat emptor is Latin for “Let the buyer beware”.

Although the three-day “Cooling Off” rule has been in effect for years, the Better Business Bureau (BBB) reports that many consumers are still confused about their rights. Here is a reminder of where and when this rule applies.

Under the Federal Trade Commission’s “Cooling Off” Rule, you have three business days to cancel any purchase of $25.00 or more that you have made in your home or somewhere other than the seller’s usual place of business, such as a rented hotel room. The “Cooling Off” Rule also provides protection for consumers who purchase items at a product party given in a private home. The rule is designed to give consumers options to carefully weigh their decisions away from sales personnel and high-pressure environments.

However, as with every rule, there are exceptions. The “Cooling Off” Rule does not apply to: sales made at the seller’s usual place of business; sales made totally by mail or phone; those for real estate, insurance or securities; those of vehicles; those of goods and services that are needed to meet an emergency; or those of arts and crafts in certain locations. The Rule also does not apply to sales that begin as retail transactions at a business establishment, and are completed with the signing of a contract in your home. For instance, ordering carpet at a store and signing the contract when someone comes to your home to measure floor space is not covered.

“We often hear from consumers who think they have three days to cancel a transaction, when the rule actually applies to a limited number of situations,” said BBB Bill Moak. “It’s important that you understand your rights under the law before committing to any transaction, especially those in which you may change your mind.”

WARNING: There is no 3-Day “Cooling Off” period on MOST Car Transactions in MOST States!  Most transactions take place at a dealership, which voids this rule.  You must educate yourself, research your purchase and gather all the facts (then, if you’re like me, Pray!).

Here is the challenge:

• Sometimes customers Make Mistakes!
• Sometimes (oftentimes) Car Dealers Make Mistakes!

At Suzuki of Wichita we take the worry, pain, fear and frustration out of buying a used vehicle!  Every car, truck, van and SUV comes with our 3-Day “Stay Happy” Money Back Guarantee.  You can return the vehicle for any reason!  And we won’t pressure you into buying another vehicle or keeping the one you bought.  Simply bring it back in the same condition in which it was purchased, and you will get a full refund…No Questions Asked.  See store for details.

Did You Know? The FICO score was developed by Fair Isaac & Co. Credit, a company involved in financial analysis.  The scoring is a method of determining the likelihood that credit users will pay their bills in a timely manner. Fair, Isaac began its pioneering work with credit scoring in the late 1950s and has been on forefront ever since.

by Scott E. Pitman, D.M.N.

10 Tough Questions to Ask BEFORE You Buy a Used Car

Can I see “The Books” on the vehicles that I am interested in?

Want to see a salesperson turn a crazy shade of green?  Throw “The Books” at them…

• Can I see both the NADA and Kelly Blue Book values on the vehicles that I am interested in?
• Can I see a Vehicle History Report (AutoCheck or CarFax) on the vehicles that I am interested in?

Most dealerships don’t want to talk about book values, but it is always in your best interest to research the book value of any vehicle you are interested in.  Some vehicles that are more in demand will bring a premium price, often over book value.  Other very common vehicles should be priced in line with or under book.  Educate yourself.  Watch them change colors!

AutoCheck and CarFax are reports that will provide you with information regarding the vehicles previous damage, outstanding recalls, factory buybacks, lemon law vehicles and salvage title history.  Insist that the dealership provide you an AutoCheck or CarFax so that you can make an informed decision (And make them pay for it!)

At Suzuki of Wichita you are likely to hear the phrase “No Challenge, Be Happy Too” if you ask any of these questions.  “Yes”, we are always happy to provide book values on any vehicle we sell.

Did You Know? Black Book, NADA Guide, Kelly Blue Book, etc. are used by dealer appraisers to establish used car values.  These guides show the appraisers a description of vehicles by make, model, year, and price depending on condition and mileage.  This information gives them a fairly accurate picture of the going price for a specific vehicle in the dealer’s geographical area.  The NADA Guide is normally used by banks and credit unions to establish lending amounts and loan approvals.  Kelly Blue Book is the most accepted and popular guide among most consumers today.

Scott E. Pitman, D.M.N.

10 Tough Questions to Ask BEFORE You Buy a Used Car

Do you offer any kind of Guarantee or Warranty on your Used Vehicles?

Why would you want to risk spending money with someone who isn’t willing to stand behind the cars they sell?  Most dealerships stand behind their vehicles with anywhere from a measly 10% to a whopping 50% warranty.  You will find the dealers warranty listed in the window on the used car on the Federal Buyers Guide (it is a Federal Law that each vehicle display this document).

The challenge with these 10% to 50% warranties (anything less than a 100%) is that you do not control the pricing.  Here’s what I mean.  Most dealerships make 50% to 70% profit on automotive repairs.  So, let’s assume that you have an engine go out in the vehicle you just purchased.  The average engine repair today is in excess of $3,500.  If the dealership pays for 50% and you pay for 50%, then you each contribute $1,750.  OUCH. First of all, the engine probably already had a challenge when the dealership sold you the car.  Second, the dealer has at least $1,750 worth of profit built into the $3,500 service ticket.  So, you cough up $1,750 of your hard earned money on a vehicle you just bought, and the dealer loses nothing, in fact, they may even turn as much as a $700 profit on your misfortune.

SCAM ALERT! You have been warned…be very cautious about anything less than a 100% warranty at time of sale!  When someone I care about is shopping for a vehicle, I urge them to consider the guarantee that is included. It may seem like you’re getting a good deal from a dealer or a private seller. But that good deal can quickly turn into a nightmare if you experience problems with the vehicle once you drive off.

At Suzuki of Wichita we stand behind everything we sell, New or Used.  After all Suzuki does have “America’s #1 Warranty!”

Did You Know? A Warranty is different than a Service Contract! A warranty is generally included in your purchase and has no additional charge.  A service contract is generally purchased by the customer and is offered through a third-party administrator.  Under the Magnuson-Moss Act, “service contract” means a “written contract to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair (or both) of a consumer product.”

10 Tough Questions to Ask BEFORE You Buy a Used Car

What do you do to prepare your Used vehicles for sale?

I have personally asked dealers all over the country this exact question.  My favorite response (to make fun of) is the dealer that responded, “I drive them from the auction to the lot.”

Unfortunately this is the same reconditioning process that is followed by many used car dealers.  When you’re paying thousands of dollars for a vehicle, you deserve to receive something more.

Just like you demand to know if your Doctor is qualified to handle your health or if your Financial Planner is qualified to handle your money; you should want to know more about the qualifications of the people who are handling your automotive needs.

I always recommend that you purchase from a dealer who services what they sell.  Notice that every new car showroom in the United States has a service department directly behind it.  Cars are man made and cars break.  Make sure your dealer has the state of the art service facility, the equipment and the qualified technicians to stand behind what they sell.

At Suzuki of Wichita every single car on our lot has been inspected and certified by an ASE Technician in a state of the art facility with all of the modern technology and diagnostic equipment.  We are always happy to provide you with a written copy of any mechanical or cosmetic reconditioning we do to any vehicle we offer for sale.  It is hard to put a price on that kind of Peace of Mind!

10 Tough Questions to Ask BEFORE You Buy a Used Car

Can you provide references or testimonials of people you have done business with in the past?

Very few car dealers can answer this question. In many cases this is because they have very few satisfied customers. Many dealerships simply continue to “buy” new business through their advertising efforts, instead of creating “customers for life” and building their business on repeat and referral business.

If a dealer doesn’t have a list of satisfied customers who you can contact regarding their purchases or letters of recommendation and references of people they have worked with in the past, you should consider shopping elsewhere.

Many dealers lure customers in to the dealership with big promises, only to hassle them with high pressure tactics when they get there. Those dealers don’t have lifetime “raving fan” customers. I would not do business with any dealer who doesn’t have a long list of happy customers.

At Suzuki of Wichita we have a long list of very happy customers from all over the USA – and we have the pictures, love notes, raving fan videos and and Thank You letters to back it up.  You can read them in the store or online at www.suzukigossip.com

Did You Know?

Women purchase over 50 percent of all vehicles sold in the United States each year and influence 85 percent of the buying decisions, spending over $80 billion. Yet, many car dealerships still treat women poorly in the car shopping process.  Wake up car dealers!

10 Tough Questions to Ask BEFORE You Buy a Used Car