How to Avoid Costly Mistakes When Presidents’ Day Car Buying

TALLAHASSEE, Fla. – While many Americans will enjoy a restful day of relaxation this Presidents’ Day, many will be cashing in on Presidents’ Day car-buying deals. The Service Contract Industry Council, Guaranteed Asset Protection Alliance, and Motor Vehicle Protection Products Association offer prospective car buyers a Top 5 list of tips for avoiding costly mistakes when buying a new or used car.

“Most car buyers focus on negotiating the price of the car, which is certainly important. But it’s equally important to take additional steps on the front end, such as purchasing a GAP waiver, service contract, or motor vehicle protection product, which can save you thousands of dollars down the road,” said Tim Meenan SCIC Executive Director and General Counsel of SCIC, GAPA, and MVPPA.

The associations offer the following consumer tips when buying a new or used car, which can deliver big savings later:

• Don’t focus on the monthly payment – instead, keep it simple and negotiate the actual cost of the car.

• Shop around for auto loans on your own and get pre-approved by a financial institution before car shopping.

• Protect your car with a GAP waiver, which can eliminate the borrower’s obligation to pay some or all of the remaining balance between a vehicle’s actual cash value and the loan balance in the event the car is a total loss due to theft or accidental damage.

• Prepare financially for mishaps and repairs through a service contract or motor vehicle protection product. A service contract can help cover the cost of vehicle repairs and necessary replacements, and can be purchased anytime. Many states require that contracts have a free-look period, giving consumers time to read the fine print and decide if the service contract is right for them.  Motor vehicle protection products offer an array of protection, from tire and wheel road hazard coverage to windshield and key fob replacement.

• Do your research. Know the value of the new or used car you’re interested in, as well as the value of your trade-in. Also, check your care insurance rates ahead of time.

For more information about service contracts, visit go-scic.com. To learn more about GAP waivers, visit gapalliance.org. For more on motor vehicle protection products, visit mvppa.org.