Considering a Used Car?
As the upward trend of used car prices continues, here are some additional considerations and suggestions to consider before the purchase to lessen that upward trend on your budget:
Review your credit report, score, and repair where and if possible.
Free credit reports are available online at: www.AnnualCreditReport.com. You can obtain reports from all three bureaus (Transunion, Experian and Equifax). Disputed items and old debts often linger on these reports. If you discover any of these errors, each reporting agency has dispute forms available on their induvial websites which can be completed and mailed to the bureau(s).
Higher insurance premiums
If you will be financing the car, you will be required to carry full coverage on the vehicle. If your current insurance is liability only, you should discuss the increased insurance rates for the automobile(s) you are considering. Insurance rates vary by automobile type, so you should also discuss insurance pricing for the vehicle you are considering.
Don’t forget the TAXES
Even though it’s a used car, you will still be required to pay sales tax before you can legally drive the car. You should consider this as an “up-front” cost as you will be required to register the vehicle within 30 days of purchase. A helpful source to calculate the taxes can be located on the Arkansas Department of Finance website:
CREDIT
If you have traded in a car or recently sold a car, you can receive credit on the taxes owed when registering your purchased used car, if it was sold 45 days prior to registration. If you sold your old car to a private individual, you must provide a bill of sale, signed by the buyer which includes the year, make, model, VIN number, and purchase price to receive this
AUTHOR: ERIC SOLLERS, STAFF ATTORNEY FOR CENTER FOR ARKANSAS LEGAL SERVICES