MEMPHIS, Tenn. — Consumers shopping for a used car don’t need to be taken for a ride themselves.
“It drives buyers, especially buyers of used cares, into sort of a desperation mode.”
Attorney Matt Jones says he sees it all the time.
Memphis residents who need a car in a hurry, to get to work or take kids to school, end up making a quick decision that can have a lasting impact.
“This is a big financial transaction, and they really need to take their time to think about it.”
Jones, who’s a staff attorney in the consumer division at Memphis Area Legal Services, talked to WREG about some of the biggest trends he’s seeing across the area when it comes to bad used car deals.
Pitfall number one is subprime loans.
Jones says lots of times it happens at buy-here, pay-here dealerships.
“They handle all of the underwriting, sometimes don’t even take a credit application, just look at a pay stub and give you financing that they basically make up,” he said.
Jones says he’s seen interest rates of up to 24 percent as well as longer loan terms, giving the consumer the impression they can afford the monthly payment.
Pitfall number two is one the News Channel 3 Investigators recently warned about: renting or leasing used cars.
“There’s been a lot of misunderstanding amongst the consumers about what kind of transaction they’re getting into and who’s going to own this vehicle at the end of that term,” Jones said.
A big red flag is the words “lease term” in the contract.
Pitfall number three is buying a car without the title.
“Don’t leave without the title. As a matter of fact, don’t even consider buying the car until you see the title. It should be with it.”
The bottom line is don’t just listen to the salesperson’s advice. Take your time, slow down, ask around, and if you do plan to buy, read the contract carefully.
Memphis Area Legal Services offers free workshops for car-buying education. Check out Zaneta Lowe’s Facebook page for more details.
