Read the fine print before signing on the dotted line

Bob Attrell

TADA PRESIDENT

What's the best piece of advice I can offer car buyers today?

That's easy: Before you sign any purchase or lease agreement, read it over carefully to make sure you understand everything about it.

Unfortunately, few car buyers bother to read their sales agreements before signing on the dotted line.

They're in such a rush to get a deal done that they often neglect to understand all the terms and obligations.

Failing to understand a sales agreement is only asking for trouble. Based on my experience, it's probably the single biggest source of conflict between dealers and customers.

Car manufacturers spell out the terms of an agreement for the benefit of consumers. It's put there so purchasers understand their rights and obligations.

A typical sales contract is a legally binding document. You can't sign this document and decide a week later that you're not going to honour it. Purchase and sales agreements don't work that way.

Sales agreements cover such items as the manufacturer's suggested retail price, the payment of federal and provincial taxes, financing, transfer of ownership, delays in the delivery of the vehicle, trade-ins, failure to accept delivery or to pay – to name a few.

Understanding all aspects of a purchase or lease agreement extends to the fine print in newspaper ads, as well.

The fine print on new car ads is usually in a smaller font size, tucked away at the bottom of the ad. It contains information that is relevant to the offer, and new-car dealers and manufacturers are required by law to include it.

Again, few car buyers bother to read it – but they should.

The fine print normally includes a breakdown of all advertised prices, claims and offers. For instance, if a car is advertised with a lease payment of $199 per month, the fine print needs to include how much down payment is required to qualify for that monthly rate.

It also needs to include the year and model the lease rate is valid on, as well as the term of the lease, information about the security deposit, freight charge, PDI, licence fees and levies, registration fee, additional costs for options, and all taxes.

In addition to these costs, the fine print of a lease offer should specify maximum kilometres allowed per year and the surcharge for excess kilometres.

The excess kilometre fee is a key part of any lease agreement. Try to be as accurate as possible in estimating the number of kilometres you expect to drive during the lease cycle.

Interest rates are another important item found in the fine print. For example, if a vehicle is advertised with a 1.9-per-cent interest rate for a 48-month term, consumers need to know the monthly payment, along with the total lease obligation (total monthly payments, plus interest).

On a purchase price, the fine print must be equally as specific and inclusive, disclosing all terms, conditions and payments that affect the offer. These costs include MSRP, the amount of a down payment, administration fees, freight charges, taxes, licence and insurance costs.

For a manufacturer or new-car dealer to deliberately withhold key information on an advertisement, or mislead the public, is a serious offence.

If you feel an advertisement doesn't meet with the criteria listed above, contact the Ontario Motor Vehicle Industry Council (www.omvic.on.ca).

Before you sign any car deal, it's critical that you understand everything pertaining to the offer. Read the sales or lease agreement and the fine print in any advertisement carefully.

If you're unsure about anything, then ask a salesperson or a sales manager.

This column represents the views of TADA. Email: president@tada.ca or

visit www.tada.ca.

Bob Attrell, president of the Toronto Automobile Dealers Association, is a new-car dealer in the GTA.

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