The most common type of implied warranty is the warranty of merchantability: The seller promises that the product offered for sale will do what its supposed to. That a car will run is an example of a warranty of merchantability. This promise applies to the basic functions of a car. It does not cover everything that could go wrong.Breakdowns and other problems after the sale dont prove the seller breached the warranty of merchantability. A breach occurs only if the buyer can prove that a defect existed at the time of sale. A problem that occurs after the sale may be the result of a defect that existed at the time of sale or not. As a result, a dealers liability is judged case by case.You have two choices: pay in full or finance over time. If you finance, the total cost of the car increases. Thats because youre also paying for the cost of credit, which includes interest and other loan costs. Youll also have to consider how much you can put down, your monthly payment, the length of the loan, and the annual percentage rate APR. Keep in mind that annual percentage rates usually are higher and loan periods generally are shorter on used cars than on new ones.Dealers and lenders offer a variety of loan terms and payment schedules. Shop around, compare offers, and negotiate the best deal you can. Be cautious about advertisements offering financing to firsttime buyers or people with bad credit. These offers often require a big down payment and a high APR. If you agree to financing that carries a high APR, you may be taking a big risk. If you decide to sell the car before the loan expires, the amount you receive from the sale may be far less than the amount you need to pay off the loan. If the car is repossessed or declared a total loss because of an accident, you may be obligated to pay a considerable amount to repay the loan even after the proceeds from the sale of the car or the insurance payment have been deducted. If your budget is tight, you may want to consider paying cash for a less expensive car than you first had in mind.

Address: 600 Pennsylvania Avenue, NW Washington, DC 20580
Telephone: 1-877-438-4338
Website: http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut03.shtm