Cars are both an important transportation resource and, sometimes, an extension of a personal identity. Consumers may be eager to buy a new car after long periods of saving. Usually buying a handful of cars in their lifetime, consumers are at a disadvantage to dealers, who sell cars every day. There is an emotional component to buying a new car that consumers should be aware about.
Online Research: Using the Internet as your tool, research different makes and models that have the features you are looking for. Once you have a car in mind, look up the Manufacturer Suggested Retail Price (MSRP), which is the manufacturer’s recommendation on vehicle pricing. You can usually find this information on the manufacturer’s website. Also check pricing through online forums, such as Reddit, where many consumers post about their experiences with different cars. Don’t take everything you read from other consumers as fact. Gather information that will help you make an informed decision.
Test Drive: Once you have a clear idea of the car you want, it is time to go to the dealership. Make clear to the salesperson what you want to try without expressing your interest in buying. If you share how much you like the car, or are excited, salespeople may seek to capitalize on this knowledge when negotiating. Try to stay calm and neutral to help get the best deal.
Trust your own research over verbal representations. After selecting a car, you will move on to the paperwork, a process which can feel cumbersome for consumers. People tend to relax after selecting the car they want, which is a huge choice. Stay alert throughout the signing.
Most people do not buy new cars frequently, but a salesperson sells cars every day. Because of this, they are better at selling than you are at buying. One very common strategy used in car sales is to stretch out the car deal. This can be exhausting for the consumer, making it harder to make thoughtful decisions.
You may be asked to provide an electronic signature on a tablet or computer. This can be problematic as you may not see or comprehend the document. It is easy to miss key facts when reading on the digital screen. You can ask the salesperson to print out any contract you are expected to sign and read the contract carefully. You have the right to get printed documentsbefore you sign, as well as to choose to sign in writing.
If financing with the dealer, be careful to avoid “yo-yo deals,” where the dealer reserves the right to cancel the agreement and re-finance at a higher interest rate and payment. Sub-prime auto loans often have high interest rates and prepayment penalties for paying off the loan early. Getting pre-approved by your bank—or even having your bank pay with the auto as collateral with a bank auto loan, is also an option.
This piece is one in a series of Helpful Hints brought to you by the Consumer Assistance Program’s (CAP) service-learning interns. UVM undergraduate students make significant contributions to our program and Vermont through their participation in our service-learning lab, where they learn about consumer protection while honing their professional skills.
Please note, the information herein is provided for educational purposes and does not constitute legal advice. Consumers with general consumer questions should contact CAP for more information or seek private counsel from an attorney for legal advice.
By Sabine Love, CAP Service-Learning Intern Feature on credit, blog 2 of 2, follows up with additional information on the What is Credit blog.
What are the different types of credit?
Revolving Creditholds a given credit limit that you cannot exceed. The balances are paid off, either through portion payments or in full every month, with the remaining balance carried over. The most common forms of revolving credit are credit cards.
Installment Credit is where your payments increase and you gradually pay back the creditor overtime, like student or car loans and mortgages.
Service Credit is a binding contract you enter where a business provides a service that you pay them for after—most commonly, cell phone plans, utilities, and membership services.
How to build your credit
There are many ways to build your credit, such as through the different types of credit previously mentioned. But, what do you do if you cannot obtain revolving credit, or a car loan, because you have not been focusing on building your credit? You can build credit in other ways, even without a cosigner.
Secured Credit Cards. These forms of credit cards have the same application process as a traditional credit card, but once you are approved, you deposit money into a separate account. With this card, the bank holds the deposit and you have a small monthly range of money to use. It is recommended to use only 30% of this total credit limit, making sure you can pay it in full and don’t “max out” your card.
Credit Build Loans are the second tip, these are usually offered by credit unions (CU), and you pay the CU back over time through small monthly payments, once you finish the payments, you receive the total amount of funds back.
Finally, there are Retail Store Cards, these you should be more careful with because they are typically quite easier to obtain than traditional credit cards. These cards usually can only be used at a particular store/chain of stores, and they offer lower credit lines and high interest rates. For those building credit, one card at a favorite store can help build credit, provided it can be paid off every month.
Building credit can feel overwhelming, but it doesn’t have to be! There are credit education and counseling services available, such as through the Community Action Agencies, and some nonprofits. They are working to empower people to lead financially healthy lives.
And don’t forget, the Consumer Assistance Program is always here to help with any consumer questions you have.
This piece is one in a series of Helpful Hints brought to you by the Consumer Assistance Program’s (CAP) service-learning interns. UVM undergraduate students make significant contributions to our program and Vermont through their participation in our service-learning lab, where they learn about consumer protection while honing their professional skills.
Please note, the information herein is provided for educational purposes and does not constitute legal advice. Consumers with general consumer questions should contact CAP for more information, or seek private counsel from an attorney for legal advice.
By Sabine Love, CAP Service-Learning Intern Feature on credit, blog 1 of 2, precedes Building Credit blog.
For one, I feel that the knowledge of the world of credit truly is a terrifying separator between thinking you’re an adult and being an adult. But is the “world of credit” truly that scary? In my experience, I have come to understand that credit can be helpful for young adults, particularly people who are supporting themselves, starting out on their own.
Let’s start with credit and credit score and credit report. Although they sound similar and both play significant roles in your financial health, they are quite different and play equally different roles.
Credit is an arrangement to borrow money now with a promise to repay it later, often with interest.
Your credit score, however, is determined by your credit history and determines your credit risk, an indication as to how likely you are to repay your loans. Potential lenders use the credit score to determine whether they want to issue you credit, such as a mortgage, credit card, auto loan, etc.
Your credit report is issued by credit bureaus (Equifax, Experian, TransUnion, Innovis) that shows your credit history (lines of credit you have open). Remember to check your reports at least once a year to make sure there are no errors.
Now that we have the basics with definitions down, let’s answer some common questions:
How to establish Credit when you don’t have a history of credit?
Many may not know that credit can be established without having to ask another person with credit to co-sign for you or make you an authorized user on their credit card. You can apply for a credit account that is tailored to people that are new to credit. You can ask your bank about limited credit lines, or pre-paid credit cards that build credit.
Even if you have never opened a line of credit, you can generate a credit report and check your credit history now. Things like utility payments and rent can be used to help build your credit if regular on time payment records are reported to the credit bureau.
Complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281
Or, contact the three nationwide credit reporting companies individually to request your report (see below).
This piece is one in a series of Helpful Hints brought to you by the Consumer Assistance Program’s (CAP) service-learning interns. UVM undergraduate students make significant contributions to our program and Vermont through their participation in our service-learning lab, where they learn about consumer protection while honing their professional skills.
Please note, the information herein is provided for educational purposes and does not constitute legal advice. Consumers with general consumer questions should contact CAP for more information, or seek private counsel from an attorney for legal advice.
Small Business Flood Relief Resources and Action Steps graphic.
On behalf of the entire Vermont Attorney General’s Office, our thoughts are with those affected by this summer’s flooding.
As businesses rebuild what was lost and purchase new items after the floods, we urge businesses with concerns to reach out to the Attorney General’s Consumer Assistance Program (CAP) for help. Vermont businesses are covered by our state’s consumer protection law and CAP is a helpful resource available to businesses. CAP’s Small Business Advocate can assist businesses with any questions relating to consumer purchases and consumer complaint mediation.
Our office has created a list of resources and action steps for businesses that have been impacted by the flood.
First and foremost, businesses must document everything. Take pictures and write down all actions you are taking. This step will be integral in applying for relief and insurance claims down the road. If you have not already, report your damage and unmet needs to the designated Vermont 2-1-1 Flood Damage-Business Form. 2-1-1 is currently cataloging damage and identifying areas and locations that need assistance.
Making Repairs to your Business:
Below are a few tips to follow before making changes to your business as you repair and rebuild what was damaged in the flood.
Contact your insurance company as soon as possible and do not make any permanent changes to your business until you get approval from your insurance company.
Beware of dubious contractors that may appear with promises to restore damages immediately in exchange for immediate payment. Never pay in full upfront for a commercial project. Make sure you have a contract. Before working with a contractor, always check the Attorney General’s Home Improvement Fraud Registry and residential contractor registration status with the Office of Professional Regulation in the Vermont Secretary of State’s office.
Contact the Consumer Assistance Program by phone at (800) 649-2424 or by email at ago.smallbusiness@vermont.gov for questions relating to hiring a commercial contractor.
Legal Assistance:
Small businesses may also need the advice or services of an attorney. Below are legal resources available to small businesses during this time.
Vermont Bar Association (VBA) is offering low-cost consultations. A lawyer will provide a 30-minute consultation for $25 to help answer questions. You can reach the Lawyer Referral Service at (800) 639-7036 Monday-Friday 8am – 4pm or businesses can directly request services here: tinyurl.com/23floodvtbizlegal. VBA is coordinating landlord/tenant lawyers to draft a short guide on the responsibilities of landlords and tenants during this time. Please visit vtbar.org for updates.
Small Business Legal Assistance Project offers support and outreach on legal topics impacting diverse and disadvantaged businesses and business owners in Vermont.
FEMA Disaster Legal Services (DLS) provides free legal help to low-income disaster survivors (individuals and small businesses). If you’re not able to get adequate legal services for your disaster-related needs, DLS may be able to help. Call (800) 621-3362 for service. If you use a video relay service, captioned phone, or other communication service, give FEMA the number for that service.
Financial Assistance- Grants and Community Funds:
There are grants and community funds available for businesses who have been impacted by flooding.
Restaurants impacted by the flood who: – Operate a brick-and-mortar location – Own a maximum of three locations, and employ fewer than 50 employees per location – Have been open for at least six months -Have revenues of $3M or less per location in the last 12 months
Eligible small businesses and nonprofit organizations can get help with working capital to help overcome the economic injury of a declared disaster.
Businesses who apply for the SBA loan and are approved are not obliged to take the loan.
The Vermont State Employee Credit Union (VSECU) is offering low-interest loans for small businesses affected by flood water damage. The loan provides near-term working capital to help with clean-up efforts, real estate repair, equipment replacement, inventory replacement, and other qualifying uses. To learn more about VSECU business loans, visit the VSECU Business Banking page. One does not need to be a state employee to bank at the Vermont State Employee Credit Union.
As a reminder, before applying for any loan, businesses should always consult with a professional and review their business credit situation carefully.
Assistance for Farmers:
If you are a Vermont farmer impacted by flooding, there are resources available to you.
Organic and NOFA-VT member farmers who have been adversely affected by natural and unnatural disasters, such as: – Crop failure – Extreme weather – Flooding – Fire – Barn collapse – Financial hardship as the price of organic milk continues to drop
Must be a Vermont farmer or food producer who has suffered a devastating loss due to an unexpected natural disaster that puts their farm or farming career in danger; covers buildings, animals, equipment, greenhouses, and hay fields.
Beware of Disaster Relief Scams:
The Consumer Assistance Program is warning Vermonters and small businesses to beware of disaster-relief scams and price gouging. Scammers may impersonate FEMA or the State of Vermont. To learn more about these scams, please review CAP’s Vermont Flood Recovery: Beware of Scams and Price Gouging blog post.
How to Contact the Small Business Advocate:
If you have any questions on the above related material, please contact Emily McDonnell, Small Business Advocate at ago.smallbusiness@vermont.gov or call CAP at (800) 649-2424.
Many Vermonters are going through a traumatic period. If you or someone you know is having a hard time with the emotional impact of this crisis, you can call or text the National Disaster Stress Hotline, (800) 985-5990, or 9-8-8. You are not alone.
Given this day in age where all things can be done online, what about purchasing your vehicle online? I know, right? I have condensed a few things to keep in mind if you find yourself shopping for a car online.
Let’s first discuss why one might choose to purchase online rather than the traditional in-person dealer route. Purchasing a vehicle online gives you a vast variety to choose from especially if there’s a specific car, make, and model you are interested in. Additionally, you can filter and browse cars with innovative features that suit your desires. In traditional car purchases, you often find yourself going from dealer to dealer to view their inventory, compare prices, and test drive different cars. Comparing options online can save you a significant amount of time. Using your smartphone alone, you can begin your search from anywhere and at any given time.
Here are a couple things to watch out for when buying a car online. Unlike buying a car at a dealer where you can stop by and test drive the car, purchasing online is a different experience. It’s advised to closely read the terms and conditions when deciding to close on a vehicle. Assess the return policy. This will typically state the period of time you have to test out the car and whether there is a restocking fee, if you decide not to keep the car. For example, some online retailers offer a 7-day/250 mile return policy. This week can serve as a useful time for consumers to check out the car by getting it inspected by a reputable mechanic, taking it on thorough test drives to make sure it is a good fit. If it is not, there are terms that outline how a consumer can return or trade in the vehicle.
Getting Started: Before even beginning you search, figure out your budget and how you will be purchasing the car (whether that’s paying cash of financing). Thoroughly do your research, just as you can do in-person, you can also shop around online. It is important to research as much as possible until you find your perfect match. Also, be wary that your credit may pulled during the process of finding financing, these will likely show up as hard inquiries on your credit report.
Nonetheless, buying a car online may not be the best fit for everyone. If you prefer a more hands-on approach and have time to engage an in-person search, the traditional route might be your preference. If you value buying experiences with more options and comparison shopping, online shopping may be something to consider.
Get more helpful hints on used car buying from the Consumer Assistance Program (CAP):
This piece is one in a series of Helpful Hints brought to you by the Consumer Assistance Program’s (CAP) service-learning interns. UVM undergraduate students make significant contributions to our program and Vermont through their participation in our service-learning lab, where they learn about consumer protection while honing their professional skills.
Please note, the information herein is provided for educational purposes and does not constitute legal advice. Consumers with general consumer questions should contact CAP for more information, or seek private counsel from an attorney for legal advice.
