You need a car. We all need a car. I was laid up at home for a month with a broken arm and could not drive. I could walk, but how many of the things you need are in walking distance? How far is your grocery store, doctor’s office, dentist, church, cleaners, post office, school, I am not even talking about work.
A new car, even a “cheap” one, after all the do dads added on is thirty to forty thousand. With a trade in on your 15 year old car with 180,000 miles, the ‘note’ is $800 a month for 5 or 6 years. You might be able to afford a 5 or 6 year old car with 80,000 miles for half the price, but what’s the ‘RUB’? No matter what the salesman says, and he will say a lot, something like, “We have a 50-point check list and she’s perfect.” or “Here’s the Car Fax, never been in a wreck or insurance claim.” Somewhere on the purchase sheet, there will be a box that says, “DISCLAIMER OF WARRANTIES” that says the used car lot, or fancy shmancy dealer, is selling the car “As Is”, that means no, and I mean non, zilch, no warranties. Think about it. You have signed financing for $20,000, which puts you on the hook for $700 a month. You drive off the lot and two weeks later the air conditioner goes out (a $1,500 repair). The manufacturers 5 year 50,000 mile warranty has expired. “AS IS” means the dealer has NO obligation. No worry you say, I bought a 2 year 50,000 mile extended warranty for $4,000 that the salesman says covers the car “bumper to bumper”. Did you read the extended warranty? You were never given a copy. In the Purchase Sheet there was a scan code, that you needed to scan with your phone and it would come up on your phone. It is 14 pages long. Did you read it? Of course not. If you could read it, the typical extended warranty for a car that is out of the manufacturer’s warranty will only cover the engine and transmission, and that is it. Even that has a long list of exceptions and limitations. The document also says, “anything other than the specific components of the engine and transmission are EXCLUDED” (my emphasis). Here are some of the things that are not covered by the “bumper to bumper” extended warranty: the radiator, the suspension, power steering, braking system, sunroof, the electrical system, door locks, window openers, power seat adjustments, sound system, and yes air conditioner. I know a person who had an electrical short circuit that started a fire that destroyed the car. Because it was not the engine or transmission that failed there was NO COVERAGE, under the extended warranty.
Bottom line. Believe NOTHING THE SALESMAN SAYS about the condition of the car. Don’t spend $4,000 on a ‘bumper to bumper’ extended warranty unless you read all 14 pages. Don’t bother. It will give you a headache even if you could locate it. Better yet, save your $4,000. What to do? ONLY, ONLY, ONLY, buy a car that a mechanic you trust has checked out the car. It will be the best $300 or $400 you have ever spent. And, never, ever, ever be afraid to walk away from a deal if it doesn’t “smell” right. There are 150 million used cars to choose from.
Having a problem with a car purchase? Contact the Law Office of Elliott Klein, PLLC at 281-961-2380.