For many families, a motor vehicle purchase
is a major investment. Yet many of us shop for a vehicle with
little knowledge of what we need or need to know.
Be an informed consumer when purchasing
a new vehicle:
1. Know the value of the vehicle
you are purchasing. Check the value with vehicle pricing guides,
such as Kelly Blue Book, NADA Appraiser Guide, Edmunds or
your local newspaper, which will give you a good idea of what
the purchase price for vehicles are currently in your neighborhood.
2. Do your homework before
negotiating the price with the dealer. Know the invoice price
of the vehicle prior to purchase.
3. Shop around for financing. Protect
yourself from being charged an unreasonable and unnecessarily
high interest rate when purchasing a new car. You have the
right to finance a car with a lender that is not associated
with the dealership. Compare rates with your local banks,
credit unions and the Internet, and choose the lowest annual
4. Read and understand your
retail installment contract. NEVER sign a blank contract
5. Read and understand your
vehicle’s warranty. AS IS means just that, the vehicle
is purchased as is and if you drive off the lot and it breaks
down it s not the dealer’s responsibility to fix the
vehicle it is yours.
6. Know what incentives or rebates that
you might qualify for, such as military, college, or customer
loyalty rebates. Some rebates are tied to financing and may
only be available to consumers with good credit.
7. Evaluate your financial situation.
Determine how much you can afford to finance and spend on
a monthly payments, operation, insurance, and maintenance.
Some of the most common questions we
receive regarding new car purchases are listed below:
1. Is there a “cooling
off” period on vehicle purchases in the State of Arkansas?
· Dealers are
not required by law to give car buyers a three-day right to
cancel. The right to return the car in a few days for
a refund exists only if financing is not approved. However,
some dealers may, by contract, offer a right to cancel.
2. Is the dealer obligated
to sell me the vehicle at the advertised price?
· Yes, provided
you know the advertised price prior to purchase. The dealer
is not obligated to refund you the difference between the
advertised price and selling price once the contract is signed.
3. The dealer states I must
put down more money to get approved financing is this true?
· Possibly, this
may be a requirement of the finance company, however you may
want to obtain financing on your own, through your bank or
credit union. You are not required to obtain financing through
4. I bought a vehicle AS IS
and I drove it off the lot and it broke down, doesn’t
the dealer have to fix it or give me a different working vehicle?
the contract stated that you are purchasing the vehicle AS
IS and the dealership is no longer responsible for the vehicle
repairs because, there is no warranty. Consumers can file
complaints with the Arkansas Motor Vehicle Commission regarding
New Motor Vehicle entities and their sales, management and
finance staff which are licensed by the Commission. If it
becomes necessary for a consumer to submit a complaint there
are guidelines that must be followed in order to properly
process the complaint. The Commission has prepared an Advertising
Complaint Form and a General
Complaint Form to aid in the proper preparation and submission
review the current copy of the AMVC
ACT which is the Statutory Code (law) and/or a copy of
the current AMVC
900 W. Capitol Avenue, Suite 400
Little Rock, AR. 72201
hours are from 8:00 am to 4:30 pm Monday through
may also reach the office by calling 1-501-682-1428 or
by fax at 1-501-682-5573
be sure to include your phone number and/or address so you
can be contacted
with any information you may request.
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