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7 Legal Considerations When Purchasing a Vehicle


— December 17, 2021

Buying a car can feel quite exciting. But, you shouldn’t let that excitement get the best of you.


If you’re thinking about purchasing a vehicle, you might have a few questions. How does the law affect your purchase? Most of the time, purchasing laws are pretty straightforward. There are a few things you should still consider, though. Here are a few considerations you should keep in mind whenever purchasing a vehicle.

1. A Cosigner Could Help You Overcome Bad Credit

Just because you’ve got poor credit doesn’t mean you can’t finance a car. First, a lot of dealerships offer financing for customers with poor credit histories. Be careful when using these options, though. Usually, they’ll charge much higher interest rates than you’d find elsewhere. Still, they’re a good option if you’re in need of a car.

Another way to circumvent poor credit would be to use a cosigner. Cosigners attest to your credit. You just need someone willing to go on your loan documents with you. Of course, if you’re doing this, you’ve got to be careful. If you go delinquent, your cosigner will be on the hook. Make sure you’re able to afford whatever you’re purchasing. Otherwise, you could put your cosigner in a tight spot.

2. Lemon Laws Protect You When Purchasing Something Used

Purchasing a used vehicle tends to be a good idea. There are a few exceptions, though. If you happen to purchase a lemon, you might feel like you’ve got bad luck. Fortunately, there are laws out there to help you.

Lemon laws assist consumers whenever they’re purchasing something used. Usually, dealerships must inspect anything used before they’re able to sell it. Even after inspecting them, there might be undetected problems. Speak to an attorney if you’ve been sold a lemon. They’ll be able to help you seek out remuneration. That way, you’ll receive compensation to recover anything you’ve spent.

3. You Should Receive a Financial Disclosure When Financing

Financial disclosures give you all your terms on a single document. These go along with any type of financing you’re using. Don’t sign a loan document unless it’s got a disclosure along with it. Otherwise, you might be dealing with someone trying to pull a fast one.

4. Read Through All Your Documents

Perhaps, you’ve seen some nice cars for sale online. Don’t purchase them unless you’ve been sent all your documents. Most car sales include a financial disclosure. And, there should something regarding the vehicle’s title. If you haven’t received both of them, then the deal might be too good to be true.

5. Understand the Term “As Is”

Man fixing car; image by Arseny Togulev, via Unsplash.com.
Man fixing car; image by Arseny Togulev, via Unsplash.com.

Let’s say you’ve decided to purchase something used. If that’s the case, then you’ll want to read through the fine print. New cars tend to have good warranties that come along with them. However, a lot of dealers don’t include them with their used inventory. You’ll see the words “as is” in most cases. That simply means you’re getting what you see. As-is cars don’t come with any type of warranty coverage.

6. Consider Purchasing a Used Vehicle Warranty

Now, that doesn’t mean you can’t get a new warranty for your car, though. Aftermarket warranties often provide high-quality coverage. Don’t just pick the first one you see, though. Go through all the fine print to make sure it’s covering what you need. Otherwise, it might be a waste of money. Make sure it covers your powertrain. That’s the most important part of any car. A powertrain warranty will cover everything your car needs to drive.

7. You Don’t Need an Attorney to Purchase a Vehicle

Signing documents for a car purchase is legally binding. But, you don’t need to have an attorney with you to sign them. As long as you’re confident, you can sign everything by yourself. So, don’t feel like you’ve got to have money for legal representation. You can just handle it all on your own, instead.

Purchasing a New Car

Buying a car can feel quite exciting. But, you shouldn’t let that excitement get the best of you. Make sure you’re reading everything you sign. Otherwise, you might end up getting a bad deal. As long as you’re doing that, you’ll be fine usually.

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