EW's Car-Buying Tips
by Alan Pittman

Complaints against car dealers are the number one consumer problem in Oregon with 5,899 complaints filed with the state attorney general since 1990. Despite the magnitude of the problem, consumer advocates say Oregon has among the weakest anti-lemon laws in the nation.

The lack of consumer protection in Oregon leaves many new and used car buyers to fend for themselves. Here are some warnings and advice on dealer scams and car-buying tips culled from consumer attorneys and advocates.

Tacky Tactics
No refunds
After you sign the contract and drive the car off the lot, it's very hard or impossible to return the car for your money back the next day. The Oregon State Bar receives 20-25 calls a week from consumer's confused or mislead about a mythical 72-hour grace period to return their car purchase.

High pressure
Because dealers don't give refunds, they try hard to get a customer to sign a contract and drive away in the car. "They make you feel like your imprisoned in their little cubicle and the only way you can escape is by signing a purchase order," says Portland consumer lawyer Ed Benett.

Financing
Some dealers make more money on the car loan than the car. Beware of low monthly payments but huge total loan costs. Banks and credit unions often offer better deals. Shorter loans boost monthly payments but end up costing far less.

Trade-ins
Special price guides at the dealer may lowball what your car is worth. Check in Kelly's Blue Book (at the library or www.kbb.com) or other sources to know your car's real value. It can be a shock to see your old trade-in cleaned up and back on the lot with a price tag three times what you were told it was worth.

Delays
Dealers may try hour after hour of delays or multiple turn-overs of sales clerks to wear down a customer into submission.

Lost keys
To keep a customer from leaving the lot, a dealer may claim that the keys for the buyer's trade-in vehicle have been lost. If the dealer doesn't produce the keys quickly, call the police and file charges of illegal detainer.

Add-ons
A dealer may try to pack high-profit undercoating, rust proofing, fabric protection or expensive and often redundant warranties into a purchase, sometimes without a customer's knowledge. Consumer Reports advises, "Refuse them all since they are worthless, overpriced, or both."

Buying vs. leasing
Some dealers lead customers to think they're buying a car when they're actually leasing it in a confusing deal.

Bait and switch
A dealer may advertise or quote one price or interest rate to get a buyer in the door and then switch to a higher price once the customer is hooked. A Consumer Reports survey found that only one-third of car ads provide clear information on what car is for sale and at what price. Even if you've signed the paperwork and done your trade-in, you can get out of a deal if the car dealer changes the written contract's price or interest rates.

Damaged goods
Some dealers spiff up and then resell used vehicles that have been wrecked or new vehicles that were flood damaged or fell off a delivery truck, without telling the buyer.

Odometer spinning
Turning back the odometer is illegal but not unheard of. Make sure the pedal, seat and tire wear of the car match the odometer.

Arbitration
If you get ripped off, you may want to sue. But many dealers have taken to inserting fine-print contract language that takes away the right to a jury trial and appeal and instead requires mandatory arbitration.

Buying Tips
Leasing
Leasing contracts are better today than in years past, thanks to class-action lawsuits, but they are still a mixed bag. The up-front and per month costs may be lower, but after the lease expires, the buy-out price could exceed the car's value, and you will be liable for any mileage over that allowed in the contract. Leasing contracts should be read very carefully.

Research price
Find out how much the dealer paid for the car by researching on the internet or in the library autobytel.com is the largest site, see below for more links. Dealer costs vary but are usually about 90 percent of the posted manufacturer's suggested retail price (MSRP). Bargain up from the dealer's invoice cost. About $150 to $500 over invoice may be reasonable, but prices vary with demand for the vehicle. Include dealer fees for prepping and documentation in your price negotiations and comparisons.

Bargaining
Bargain the price first. Don't talk about confusing leasing, trade-in or financing options until you have a firm price for the car. Don't tell the dealer how much you can afford a month in payments, even though they may ask you several times.

Read the contract
Read the entire sales contract including the tiny print before signing. Take it home if you need to. Many contracts say oral promises by salesmen aren't binding

Check out the dealer
Ask friends for recommendations. Get a Better Business Bureau Report at (503) 226-3981 on the dealer. The reports are sometimes vague and the information spotty, but they may serve to identify some of the shadiest dealers. The Oregon attorney general's office at (503) 378-4320 will tell consumers about complaints filed against a dealer.

Get it in writing
Dealer promises aren't worth much unless they're in writing. Any promises or claims about the car such as warranties, whether it's been in a wreck, mechanical condition, previous owners, etc., should be written down and signed by the dealer. Ask the dealer tough questions about the car and have him or her write down and sign the answers.

Walk away
Don't let a dealer convince you that the deal you've spent hours working on will disappear if you don't sign right away. A good deal will be there the next day. Shop around and walk away if a dealer gives you the willies.

Be paranoid
Consumers who buy cars but a few times in their lifetimes are competing against salesmen that sell cars every day. Be careful, not gullible. Take your time and read the small print.

Hire a mechanic
A mechanic will charge $60 to $100 to give a used car a once-over far better than any inspection the dealer may have claimed to have done. Defects and deceptions that the mechanic catches could save you a bundle. Use the mechanic's repair estimate to negotiate a buying price. If you're sure you can do the inspection yourself, the attorney general , Better Business Bureau , and Consumer Reports provide long lists of common defects to check for.

Sue
Oregon's lemon law sucks but consumers may still find recourse under the Oregon Unlawful Trade Practices Act. The law says basically that you can't lie about something your selling.

Big vs. small
Exceptions abound, but generally, big franchised dealers with more overhead may charge more for used cars but may have better quality cars and more professional salespeople than smaller, independent dealers.

Research the car.
The DMV can provide vehicle history reports of used cars' prior owners for a fee. Be sure to check the car's title for any warnings about repair or damage history. A buyer's guide sticker in the car window will tell you if the car is being sold with a warranty or as-is.

Don't tolerate a lemon
If the car doesn't work right, take it back repeatedly to get fixed. If you wait too long or don't try over and over to get the problem fixed, the dealer-friendly lemon law can't help you.

Virtual Dealers
The internet has put powerful car-buying information in the hands of the consumer. Heres where to look for a car without coming anywhere near a car dealer. If you dont have a surfing computer, the Eugene Library has free public terminals.

Autobytel.com is the largest car buyingservice on the internet, boasting more than $1 million an hour in vehiclesales. The site provides extensive research information on dealer costs and car quality and features. Select a car and get free, no-haggle discounted bids from nearby dealers in a network of 2,700 car dealerships.Consumer Reports says the service saves time and frustration, but their experienced car buyers often get lower prices by haggling directly with dealers.

Competing online services of varying quality are offered by Carpoint.msn.com , AutoVantage.com, AutoWeb.com Autosite.com, and Carfax.com.

AutoConnect.com boasts the largest used car inventory. General Motors BuyPower.com links directly to dealers but, of course, doesnt tell you how much the dealers paid for their cars.

The Kelley Blue Book of used car values is available in libraries and online at kbb.com.

Edmund.com is another good source of price information.

Intellichoice.com offers side by side comparisons of cars.

Consumerreports.com has a wealth of pricing and car quality information but there's a fee for some of it, unlike some of the other sites. Consumer Reports dealer invoice information is also available by phone (800-888-8275) for a fee. CR magazines and buying guides with extensive car reliability comparisons are available in the library.