Nine Ways To Lower Your Auto Insurance Costs

You may not realize it, but the insurance rates you pay
for your car can vary dramatically depending on the insurance
company, agent or broker you choose, the coverages you request
and the kind of car you drive. Listed below are a number of
things you can do right now to lower your insurance costs.


1. COMPARISON SHOP.


Prices for the same coverage can vary by hundreds of
dollars, so it pays to shop around. Ask your friends, check the
yellow pages or call your state insurance department (phone
numbers are on back page). You can also check consumer guides,
insurance agents or companies. This will give you an idea of
price ranges and tell you which companies or agents have the
lowest prices. But don't shop price alone.


The insurer you select should offer both fair prices and
excellent service. Quality personal service may cost a bit
more, but provides added conveniences, so talk to a number of
insurers to get a feeling for the quality of their service. Ask
them what they would do to lower your costs. Check the
financial ratings of the companies too. Then, when you've
narrowed the field to three insurers, get price quotes.



2. ASK FOR HIGHER DEDUCTIBLES.


Deductibles represent the amount of money you pay before
you make a claim. By requesting higher deductibles on collision
and comprehensive (fire and theft) coverage, you can lower your
costs substantially. For example, increasing your deductible
from $200 to $500 could reduce your collision cost by 15% to
30%.


3. DROP COLLISION AND/OR COMPREHENSIVE COVERAGES ON OLDER
CARS.


It may not be cost-effective to have collision or
comprehensive coverages on cars worth less than $1000 because
any claim you make would not substantially exceed annual cost
and deductible amounts. Auto dealers and banks can tell you the
worth of cars.


4. ELIMINATE DUPLICATE MEDICAL COVERAGES.


If you have adequate health insurance, you may be paying
for duplicate medical coverage in your auto policy. In some
states, eliminating this coverage could lower your personal
injury protection (PIP) cost by up to 40%.


5. BUY A "LOW PROFILE" CAR.


Before you buy a new or used car, check into insurance
costs. Cars that are expensive to repair, or that are favorite
targets for thieves, have much higher insurance costs. Write to
the Insurance Institute for Highway Safety, 1005 North Glebe
Road, Arlington, VA 22201 and ask for the Highway Loss Data
Chart.


6. CONSIDER AREA INSURANCE COST IF YOU ARE MAKING A MOVE.


Costs tend to be lowest in rural communities and highest
in center cities where there is more traffic congestion.



7. TAKE ADVANTAGE Of LOW MILEAGE DISCOUNTS.


Some companies offer discounts to motorists who drive
fewer than a predetermined number of miles a year.


8. FIND OUT ABOUT AUTOMATIC SEAT BELT OR AIR BAG DISCOUNTS.


You may be able to take advantage of discounts on some
coverages if you have automatic seat belts and/or air bags.


9. INQUIRE ABOUT OTHER DISCOUNTS.


Some insurers offer discounts for more than one car, no
accidents in three years, drivers over 50 years of age, driver
training courses, anti-theft devices, anti-lock brakes and good
grades for students. See the following page for a guide to
these and other discounts.


INQUIRE ABOUT DISCOUNTS FOR:


COMPANY A COMPANY B COMPANY C

$500 deductible _______ _______ _______

$1,000 deductible _______ _______ _______

More than 1 car _______ _______ _______

No Accidents
in 3 Years _______ _______ _______

No Moving Violations
in 3 Years _______ _______ _______

Drivers Over 50 Years
of Age _______ _______ _______

Driver Training Course _______ _______ _______

Anti-Theft Device _______ _______ _______

Low Annual Mileage _______ _______ _______

Automatic Seat Belt _______ _______ _______

Air Bag _______ _______ _______

Anti-Lock Brakes _______ _______ _______

Good Grades for
Students _______ _______ _______

Auto and Homeowners
Coverage with the
Same Company _______ _______ _______

College Students
Away From Home
Without a Car _______ _______ _______


OTHER DISCOUNTS:


_______________ _______ _______ _______
_______________ _______ _______ _______
_______________ _______ _______ _______
_______________ _______ _______ _______


YOU CAN REACH YOUR STATE INSURANCE DEPARTMENT AT:


AL: 205-269-3550
AK: 907-465-2515
AS: 684-633-4116
AZ: 602-255-5400
AR: 501-686-2900
CA: 800-927-4357
CO: 303-894-7499
CT: 203-297-3800
DE: 800-282-8611
DC: 202-727-8002
FL: 800-342-2762
GA: 404-656-2056
GU: 671-477-5144
HI: 800-468-4644
ID: 208-334-2250
IL: 217-782-4515
IN: 800-622-4461
IA: 515-281-5705
KS: 800-432-2484
KY: 502-564-3630
LA: 504-342-5900
ME: 207-582-8707
MD: 800-492-6116
MA: 617-727-3357
MI: 517-373-9273
MN: 800-652-9747
MS: 601-359-3569
MO: 314-751-2640
MT: 800-332-6148
NE: 402-471-2201
NV: 800-992-0900
NH: 800-852-3416
NJ: 609-292-5363
NM: 505-827-4500
NY: 212-602-0203
NC: 800-662-7777
ND: 800-247-0560
OH: 800-686-1526
OK: 405-521-2828
OR: 503-378-4271
PA: 717-787-5173
PR: 809-722-8686
RI: 401-277-2223
SC: 803-737-6117
SD: 605-773-3563
TN: 800-342-4029
TX: 512-463-6464
UT: 801-530-6400
VT: 802-828-3301
VI: 809-774-2991
VA: 800-552-7945
WA: 800-562-6900
WV: 800-642-9004
WI: 800-236-8517
WY: 307-777-7401


FOR MORE INFORMATION, CALL THE NATIONAL INSURANCE
CONSUMER HELPLINE (NICH) AT 1-800-942-4242

New Car Buying Guide

Buying a new car is usually the second most expensive
purchase many consumers make, after the purchase of their home.

This guide, which includes a checklist and a worksheet,
is intended to help give you the information you need to make a
smart deal on a new car.


Buying Your New Car


Before you step into a dealer's showroom, it helps to know
what car model and options you want and how much you are
willing to spend. That way, you are less likely to feel
pressured into making a hasty or expensive decision and more
likely to get a better deal. To help you shop, you may want to
consider the following suggestions:

* Check publications at a library or bookstore that discuss
new car features and prices. These may provide information
on the dealer's costs for specific models and options.

* Shop around to get the best possible price by comparing
models and prices at dealer showrooms. You also may want
to contact car buying services and broker buying services
and make comparisons there.

* Plan to negotiate on price. Dealers may be willing to
bargain on their profit margin, which is generally between
15 to 20 percent. This is usually the difference between
the manufacturer's suggested retail price and the invoice
price. To help you do this, refer to the worksheet listed
at the end of this brochure.

* Consider ordering your new car if you do not see the car
you want on the dealer's lot. This usually involves a
delay, but cars on the lot frequently have options you do
not want -- which add considerably to the cost.


Learning the Terms


To give you a better sense of the negotiating room you
have when buying your car, it helps to understand the following
terms, listed here in order of increasing price:

INVOICE PRICE is the manufacturer's initial charge to the
dealer. This is usually higher than the dealer's final cost
because dealers often receive rebates, allowances, discounts,
and incentive awards. The invoice price always includes freight
(also known as destination and delivery). If you are buying a
car based on the invoice price (for example, "at invoice,"
"$100 below invoice" "two percent above invoice") be sure
freight is not added to the sales contract.

BASE PRICE is the cost of the car without options, but
includes standard equipment, factory warranty, and freight.
This price is printed on the Monroney sticker (see below).

MONRONEY STICKER PRICE, which appears on a label affixed
to the car window and is required by federal law, shows the
base price, the manufacturer's installed options with the
manufacturer's suggested retail price, the manufacturer's
transportation charge, and the fuel economy (mileage). The
label may not be removed by anyone other than the purchaser.

DEALER STICKER PRICE, usually on a supplemental sticker,
is the Monroney sticker price plus the suggested retail price
of dealer-installed options, such as additional dealer mark-up
(ADM) of additional dealer profit (ADP), dealer preparation,
and undercoating.


Financing Your New Car


If you decide to finance your car, you have the option of
checking the dealer's rate against banks, credit unions,
savings and loans institutions, and other loan companies.
Because interest rates vary, shop around for the best deal and
compare the annual percentage rates (APR).

Sometimes, dealers offer very low financing rates for
specific cars or models, but may not be willing to negotiate on
the price of these cars. In addition, they may require you to
make a large downpayment to qualify for these special interest
rates. With these conditions, you may find that it is sometimes
more affordable to pay higher financing charges on a car that
is lower in price or to purchase a car that requires a smaller
downpayment.

Some dealers and lenders may ask you to buy credit
insurance, which pays off your loan if you should die or become
disabled. Before you add this cost, you may want to consider
the benefits available from existing policies you may have.
Remember, buying credit insurance is not required for a loan.


Trading in Your Old Car


After getting your new car for the best possible price,
only then discuss the possibility of a trade-in. First,
however, find out the value of your old car. You may want to
check the library for references and periodicals that can tell
you how much your car is worth. This information may help you
get a better overall price from the dealer. Remember, too, that
though it may take longer, you generally will get more money by
selling the car yourself.


Considering a Service Contract


Service contracts that you may buy with a new car provide
for the repair of certain specified parts or problems. These
contracts are offered by manufacturers, dealers, or independent
companies and usually initially run concurrently with the
manufacturer's warranty. Remember: a warranty is included in
the price of the car; a service contract costs extra.

Before deciding to purchase a service contract, read it
carefully and consider some of the following questions:

* What is the difference between the coverage under the
warranty and the coverage under the service contract?

* What repairs are covered?

* Who pays for the labor? The parts?

* Who performs the repairs? Can repairs be made elsewhere?

* How long does the service contract last?

* What is the cancellation and refund policy?


For Further Information


In addition to checking publications about new car
features and prices when buying a car, you may find it helpful
to read other Federal Trade Commission brochures. These
include: "Car Ads: Low Interest Loans and Other Offers,"
"Service Contracts," "Warranties," "Buying a Used Car," and "A
Consumer Guide to Vehicle Leasing." For a free copy write:
Public Reference, Federal Trade Commission, Washington, D.C.
20580. For further information, you may want to write to:
Division of Marketing Practices, Federal Trade Commission,
Washington, D.C. 20580. Although the FTC generally does not
intervene in individual consumer disputes, it can take action
if there. is evidence of a pattern of deceptive or unfair
practices.


Checklist for Buying a New Car


You are likely to get a better deal on a car if you know
beforehand exactly what you are looking for and what you are
willing to spend. Therefore, before signing a sales contract
with a car dealer, you may want to:

* Decide which car model and specific options you want.

* Find out the invoice price (the lowest price)of the model
and each option you want.

* Decide how much you are willing to pay the dealer, if
anything, above the invoice price.

* Compare final sales prices with other dealers and buying
services.

* Compare financing costs from various sources, such as
credit unions and savings and loans institutions, with
those of car dealers.

* Find out the value of your old car, independent of a
dealer's trade-in offer.

* Decide if you need an optional service contract or credit
insurance.


Worksheet for Buying a New Car


To help you negotiate the price of your next new car, you
may want to use this worksheet to establish your bargaining
room before you talk with a dealer.


Model_______________________________________________________

Base Price Invoice Price* Retail Price

Options:

Transmission: ______________ ____________

Automatic ______________ ____________

Stick ______________ ____________

Air Conditioning ______________ ____________

Engine: ______________ ____________

Size ______________ ____________

Diesel ______________ ____________

Sound System: ______________ ____________

AM-FM ______________ ____________

AM-FM Cassette ______________ ____________

Power Brakes ______________ ____________

Power Steering ______________ ____________

Power Locks ______________ ____________

Power Seats ______________ ____________

Rear Window Wiper/Washer ______________ ____________

Rear Window Defogger ______________ ____________

Luggage Rack ______________ ____________

Tires: ______________ ____________

Full-Size Spare ______________ ____________

Steel Belted Radials ______________ ____________

Mirrors: ______________ ____________

Dual ______________ ____________

Remote ______________ ____________

Passenger Visor ______________ ____________

Other: ______________ ____________


* The invoice price may be obtained by looking at the
dealer's invoice or by reviewing new car publications.


FTC Headquarters

6th & Pennsylvania Avenue, N.W.
Washington, D.C. 20580
(202) 326-2222
TDD (202) 326-2502

FTC Regional Offices

1718 Peachtree Street, N.W., Suite 1000
Atlanta, Georgia 30367
(404) 347-4836

10 Causeway Street, Suite 1184
Boston, Massachusetts 02222-1073
(617) 565-7240

55 East Monroe Street, Suite 1437
Chicago, Illinois 60603
(312) 353-4423

668 Euclid Avenue, Suite 520-A
Cleveland, Ohio 44 114
(216) 522-4207

100 N. Central Expressway, Suite 500
Dallas, Texas 75201
(214) 767-5501

1405 Curtis Street, Suite 2900
Denver, Colorado 80202-2393
(303) 844-2271

11000 Wilshire Boulevard, Suite 13209
Los Angeles, California 90024
(213) 209-7575

150 William Street, Suite 1300
New York, New York 10038
(212) 264-1207

901 Market Street, Suite 570
San Francisco, California 94103
(415) 744-7920

2806 Federal Bldg., 915 Second Ave.
Seattle, Washington 98174
(206) 553-4656

Buying a Used Car

This year, more than 16 million Americans will buy a used
car. If that's what you are planning, this guide may help you.

It explains your protections under the FTC's Used Car Rule and offers some
shopping suggestions, even if you are not buying from a used
car dealer.

Before you begin looking at used cars, think about what
car models and options you want and how much you are able or
willing to spend. You can learn about car models, options, and
prices by reading newspaper ads, both display and classified.
Also, your local library and book stores have magazines that
discuss and compare car models, options, and costs, as well as
provide information about frequency-of-repair records, safety
tests, and mileage. The U.S. Department of Transportation Auto
Safety Hotline (800-424-9393) will tell you if a car model has
ever been recalled and send you information about that recall.


Before You Look For a Used Car, Consider


Costs. Remember, the real cost of a car includes more than
the purchase price: it includes loan terms, such as interest
rates and the length of the loan. If you plan to finance the
car, you need to know how much money you can put down and how
much you can pay monthly. Dealers and lending institutions
offer a variety of interest rates and payment schedules, so you
will want to shop for terms. If, for example, you need low
monthly payments, consider making a large down payment or
getting financing that will stretch your payments over five
years, rather than the usual three. Of course, this longer
payment period means paying more interest and a higher total
cost.

Reliability. You can learn how reliable a model is by
checking in publications for the frequency-of-repair records.
Find out what models have repair facilities in a location
convenient to you and if parts are readily available at the
repair facility.

Dealer Reputation. Find out from experienced people whose
opinions you respect which dealers in your area have good
reputations for sales and service. You may wish to call your
local consumer protection office and the Better Business Bureau
to find out if they have any complaints against particular
dealers.


If You Buy a Used Car From a Dealer


If you go to a dealer for a used car, look for a "Buyers
Guide" sticker on the window of each car. The Buyers Guide,
required by the Federal Trade Commission's Used Car Rule, gives
you important information and suggestions to consider. The
Buyers Guide tells you:

* Whether the vehicle comes with a warranty and, if
so, what specific protection the dealer will provide;

* Whether the vehicle comes with no warranty ("as
is") or with implied warranties only;

* That you should ask to have the car inspected by
an independent mechanic before you buy;

* That you should get all promises in writing; and

* What some of the major problems are that may occur in any
car.

The Used Car Rule requires dealers to post the Buyers
Guide on all used vehicles, including automobiles, light-duty
vans, and light-duty trucks. "Demonstrator" cars also must have
Buyers Guides. But Buyers Guides do not have to be posted on
motorcycles and most recreational vehicles. Individuals selling
fewer than six cars a year are not required to post Buyers
Guides.

Whenever you purchase a used car from a dealer, you should
receive the original or an identical copy of the Buyers Guide
that appeared in the window of the vehicle you bought. The
Buyers Guide must reflect any changes in warranty coverage that
you may have negotiated with the dealer. It also becomes a part
of your sales contract and overrides any contrary provisions
that may be in that contract.

As you read this brochure, you can refer to the Buyers
Guide, shown on pages 6 through 8.


"As Is--No Warranty"


About one-half of all used cars sold by dealers come
"as is," which means there is no express or implied warranty.
If you buy a car "as is" and have problems with it, you must
pay for any repairs yourself. When the dealer offers a vehicle
for sale "as is," the box next to the "As Is--No Warranty"
disclosure on the Buyers Guide will be checked. If this box is
checked but the dealer makes oral promises to repair the
vehicle, have the dealer put those promises in writing on the
Buyers Guide.

Some states (Connecticut, Kansas, Maine, Maryland,
Massachusetts, Minnesota, Mississippi, New York, Rhode Island,
Vermont, West Virginia and the District of Columbia) do not
permit "as is" sales for most or all used motor vehicles.


"Implied Warranties Only"


Implied warranties exist under all state laws and come
with almost every purchase from a used car dealer, unless the
dealer tells you in writing that implied warranties do not
apply. Usually, dealers use the words "as is" or "with all
faults" to disclaim implied warranties. Most states require the
use of specific words.


"If the dealer makes oral promises, have the dealer put
those promises in writing."


The "warranty of merchantability" is the most common type
of implied warranty. This means that the seller promises that
the product will do what it is supposed to do. For example, a
car will run, a toaster will toast.

Another type of implied warranty is the "warranty of
fitness for a particular purpose." This applies when you buy a
vehicle on the dealer's advice that it is suitable for a
particular use. For example, a dealer who suggests that you buy
a specific vehicle for hauling a trailer warrants, in effect,
that the vehicle will be suitable for hauling a trailer.

If you buy a vehicle with a written warranty, but problems
arise that the warranty does not cover, you may still be
protected by implied warranties. Any limitation on the duration
of implied warranties must appear on the written warranty.

In those states that do not permit "as is" sales by
dealers, or if the dealer offers a vehicle with only implied
warranties, a disclosure entitled "Implied Warranties Only"
will be printed on the Buyers Guide in place of the "As Is"
disclosure. The box next to this disclosure would be checked if
the dealer chooses to sell the car with implied warranties and
no written warranty. A copy of the Buyers Guide with the
"Implied Warranties Only" disclosure is shown on page 7.


Dealer Warranties


When dealers offer a written warranty on a used vehicle,
they must fill in the warranty portion of the Buyers Guide.
Because the terms and conditions of written warranties can vary
widely, you may find it useful to compare warranty terms on
cars or negotiate warranty coverage.

Dealers may offer a full or limited warranty on all or
some of the systems or components of the vehicle. A "full"
warranty provides the following terms and conditions:

* Warranty service will be provided to anyone who owns the
vehicle during the warranty period when a problem is
reported.

* Warranty service will be provided free of charge,
including such costs as returning the vehicle or removing
and reinstalling a system covered by the warranty, when
necessary.

* At your choice, the dealer will provide either a
replacement or a full refund if the dealer is unable,
after a reasonable number of tries, to repair the vehicle
or a system covered by the warranty.

* Warranty service is provided without requiring you to
perform any reasonable duty as a precondition for
receiving service, except notifying the dealer that
service is needed.

* No limit is placed on the duration of implied warranties.

If any one of the above statements is not true, then the
warranty is "limited." A "full" or "limited" warranty need not
cover the entire vehicle. The dealer may specify only certain
systems for coverage under a warranty. Most used car warranties
are "limited," which usually means you will have to pay some of
the repair costs. By giving a "limited" warranty, the dealer is
telling you that there are some costs or responsibilities that
the dealer will not assume for systems covered by the warranty.

If the dealer offers a full or limited warranty, the
dealer must provide the following information in the "Warranty"
section of the Buyers Guide:

* The percentage of the repair cost that the dealer
will pay. For example, "the dealer will pay 100% of
the labor and 100% of the parts....";

* The specific parts and systems, such as the frame, body,
or brake system that are covered by the warranty. The back
of the Buyers Guide contains a list of descriptive names
for the major systems of an automobile where problems may
occur;

* The duration of the warranty for each covered system. For
example, "30 days or 1,000 miles, whichever occurs first";
and

* Whether a deductible applies.

Under another federal law, the Magnuson-Moss Warranty Act,
you have a right to see a copy of the dealer's warranty before
a purchase. Examine the warranty carefully before you buy to
see what is covered and what is not. It contains more detailed
information than the Buyers Guide, such as a step-by-step
explanation of hoax to obtain repairs if a covered system or
component malfunctions. Also check who is legally responsible
for fulfilling the terms of the warranty. If a third party is
responsible, the best way to avoid potential problems is to
make sure that the third party is reputable and insured. You
can do this by asking the company for the name of their insurer
and then checking its performance record with your local Better
Business Bureau.


Unexpired Manufacturer's Warranties


If the used vehicle is still covered by the manufacturer's
original warranty, the dealer may include it in the "systems
covered/duration" section of the Buyers Guide. This does not
necessarily mean that the. dealer offers a warranty in addition
to the manufacturer's. In some cases, a manufacturer's original
warranty can be transferred to a second owner only upon payment
of a fee. If you have any questions, ask the dealer to let you
examine any unexpired warranty on the vehicle.


Service Contracts


When you buy a car, you may be offered a service contract,
which you can buy for an extra cost. In deciding whether you
want a service contract, consider:

* Whether the warranty that comes with your car already
covers the same repairs that you would get under the
service contract or whether the service contract
protection begins after the warranty runs out. Does the
service contract extend longer than the time you expect to
own the car? If so, is the service contract transferable
or is a shorter contract available?

* Whether the vehicle is likely to need repairs and their
potential costs. The value of a service contract is
determined by whether the cost of repairs is likely to be
greater than the price you pay for the service contract
protection.

* Whether the service contract covers all parts and systems
of the car. Check out all claims carefully. Claims that
coverage is "bumper to bumper" may not be entirely
accurate.

* Whether there is a deductible required, and, if so,
consider the amount and terms of the deductible.

* Whether the contract covers incidental expenses, such as
towing and the costs of a rental car while your car is
being serviced.

* Whether repairs and routine maintenance, such as oil
changes, can be performed at locations other than the
dealership from which you purchased the contract.

* Whether there is a cancellation and refund policy for the
service contract, and what the costs are if you cancel.

* Whether the dealer or company offering the service
contract is reputable. Read the contract carefully to
determine who is legally responsible for fulfilling the
terms of the contract. Some dealers sell service contracts
that are backed by a third party. If a third party is
responsible, you may wish to ask if the company is insured
and to check the company's performance with your local
Better Business Bureau.

If a service contract is offered, the dealer must mark the
box provided on the Buyers Guide, except in those states that
regulate service contracts under their insurance laws. If the
Buyers Guide does not include a reference to a service
contract, and you are interested, ask the salesperson whether
one is available.

When you purchase a service contract from the dealer
within 90 days of buying the vehicle, federal law prohibits the
dealer from disclaiming implied warranties on the systems
covered in that service contract. For example, if you buy a car
"as is," the car normally will not be covered by implied
warranties.

But if you buy a service contract covering the engine, you
automatically get implied warranties on the engine, which may
give you protection beyond the scope of the service contract.
Make sure you receive a written confirmation that your service
contract is in effect.


Spoken Promises


The Buyers Guide warns consumers not to rely on spoken
promises. Oral promises are difficult, if not impossible, to
enforce. Make sure all promises you want are written into the
Buyers Guide and keep it.


Pre-Purchase Independent Inspection


The Buyers Guide also suggests you ask the dealer whether
you may have the vehicle inspected by your own mechanic. Some
dealers will let you take the car off the lot to get an
independent inspection. Others may have reasons, such as
insurance restrictions, for denying this request. In such a
case, the dealer may permit you to bring an independent
mechanic to the used car on the lot. A dealer who refuses to
allow any independent inspection may be telling you something
about the condition of the car.

Remember, a good-looking car, or a car that comes with a
warranty, does not necessarily run well. An independent
inspection lets you find out about the mechanical condition of
the vehicle before you buy it. Although an inspection fee by a
mechanic may seem high, when you compare it to the price of the
car, it can be worth the cost.


Vehicle Systems


The Buyers Guide includes a list of the 14 major systems
of an automobile and some of the major problems that may occur
in these systems. You may find this list helpful to evaluate
the mechanical condition of the vehicle. The list also may be
useful when comparing warranties offered on different cars or
by different dealers.


Dealer Identification and Consumer Complaint Information


On the back of the Buyers Guide, you will find the name
and address of the dealership. In the space below that, you
will find the name and telephone number of the person at the
dealership to contact if you have any complaints after the
sale.


Spanish Language Sales


If you buy a used car and the sales talk is conducted in
Spanish, you are entitled to see and keep a Spanish-language
version of the Buyers Guide.


If You Buy a Used Car From a Private Party


Many cars are available privately, such as through
classified ads in a newspaper. If you are shopping for a car
from an individual, you should understand several differences
between sales made by individuals and by dealers.

* Private sellers generally are not covered by the Used Car
Rule and therefore, do not have to use the Buyers Guide.
However, you still can follow the Guide's suggestions. For
example, you can refer to the list of potential problems
displayed on the back of the Buyers Guide shown in this
brochure. In addition, ask the seller whether you may have
the vehicle inspected by your own mechanic and whether you
may take it on a test drive.

* Private sales usually are not covered by the "implied
warranties" of state law. So, a private sale probably will
be on an "as is" basis, unless your contract with the
seller specifically provides otherwise. If you have a
written contract, the seller must live up to the promises
stated in the contract.


"An independent inspection lets you find out about the
mechanical condition of the vehicle before you buy it."


Depending on its age, the car also may be covered by a
manufacturer's warranty or a separately purchased service
contract. However, warranties and service contracts may
not be transferable, or there may be limitations or costs
for a transfer. Before you purchase the car, ask the
seller to let you examine any warranty or service contract
on the vehicle.

* Many states require that dealers, but not individuals,
ensure that their vehicles will pass state inspection or
carry a minimum warranty before they offer them for sale.
Ask your state's attorney general's office or a local
consumer protection office about the requirements on
individuals and on dealers in your state.


Before You Buy Any Used Car


If you are interested in a particular car, ask the dealer
or owner if you can take it on a test drive. Try to drive the
car under many different conditions, such as on hills,
highways, and in stop-and-go traffic.

You also may want to ask the dealer or owner whether the
car has ever been in an accident. Find out as much as you can
about the car's prior history and maintenance record. Getting
an independent inspection by an experienced mechanic is a good
idea before purchasing any used car.

Be prepared to negotiate. Many dealers and individuals are
willing to bargain on price and/or on warranty coverage.


If You Have Problems


If something goes wrong with your car and you think that
it is covered by a warranty (either express or implied) or a
service contract, refer to the terms of the warranty or
contract for instructions on how to get service. If a dispute
arises concerning the problem, there are several steps you can
take.


Try To Work It Out With The Dealer


First, try to resolve the problem with the salesperson or,
if necessary, speak with the owner of the dealership. Many
problems can be resolved at this level. However, if you believe
that you are entitled to service, but the dealer disagrees, you
can take other steps.

If your warranty is backed by a car manufacturer and you
have a dispute about either service or coverage, contact the
local representative of the manufacturer. This local or "zone"
representative has the authority to adjust and make decisions
about warranty service and repairs to satisfy customers.

Some manufacturers also are willing to repair certain
problems in specific models free of charge, even if the
manufacturer's warranty does not cover the problem. Ask the
manufacturer's zone representative or the service department of
a franchised dealership that sells your car model whether there
is such a policy.


Other Approaches You Can Try


If you cannot get satisfaction from the dealer or from a
manufacturer's zone representative, contact the Better Business
Bureau or a state agency, such as the office of the attorney
general, the department of motor vehicles, or a consumer
protection office. Many states also have county and city
offices that intervene or mediate on behalf of individual
consumers to resolve complaints.

You also might consider using a dispute resolution
organization to arbitrate your disagreement if you and the
dealer are willing. Under the terms of many warranties, this
may be a required first step before you can sue the dealer or
manufacturer. Check your warranty to see if this is the case.
If you bought your car from a franchised dealer, you may be
able to seek mediation through the Automotive Consumer Action
Program (AUTOCAP), a dispute resolution program coordinated
nationally by the National Automobile Dealers Association and
sponsored through state and local dealer associations in many
cities. Check with the dealer association in your area to see
if they operate a mediation program.

If none of these steps is successful, you can consider
going to small claims court, where you can resolve disputes
involving small amounts of money for a low cost, often without
an attorney. The clerk of your local small claims court can
tell you how to file a suit and what the dollar limit is in
your state.

The Magnuson-Moss Warranty Act also may be helpful. Under
this federal law, you can sue based on breach of express
warranties, implied warranties, or a service contract. If
successful, consumers can recover reasonable attorney's fees
and other court costs. A lawyer can advise you if this law
applies to your situation.


For Further Help


If you want additional information about warranties or
service contracts or about new car leasing or buying, send for
these free FTC brochures:

* Warranties

* Service Contracts

* Car Ads: Low-Interest Loans and Other Offers

* New Car Buying Guide

* A Consumer Guide to Vehicle Leasing

Write: Public Reference, Federal Trade Commission,
Washington, DC 20580.

If you have additional questions about the Used Car Rule,
contact the Federal Trade Commission Office nearest you.

[Graphic Omitted]

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Federal Trade Commission Headquarters


6th & Pennsylvania Avenue, N.W.
Washington, DC 20580
(202) 326-2222
TDD: (202) 326-2502


Federal Trade Commission Regional Offices


1718 Peachtree Street, N.W.
Atlanta, Georgia 30367
(404) 347-4836

10 Causeway Street
Boston, Massachusetts 02222
(617) 565-7240

55 East Monroe Street
Chicago, Illinois 60603
(312) 353-4423

668 Euclid Avenue
Cleveland, Ohio 44114
(216) 522-4207

100 N. Central Expressway
Dallas, Texas 75201
(214) 767-5501

1405 Curtis Street
Denver, Colorado 80202
(303) 844-2271

11000 Wilshire Boulevard
Los Angeles, California 90024
(213) 209-7575

150 William Street
New York, New York 10038
(212) 264-1207

901 Market Street
San Francisco, California 94103
(415) 744-7920

915 Second Avenue
Seattle, Washington 98174
(206) 553-4656

Buying a Safer Car

Buying a Safer Car can help consumers confidently identify the safest vehicles.
Information is provided to help determine which automobiles offer the most protection from
injury and death during a frontal or side collision and to identify those vehicles most
frequently stolen.

This brochure represents no endorsement of any particular vehicle. Information was
obtained from government agencies and vehicle manufacturers.

The guide is current as of Jan. 31, 1995.

USING THE GUIDE

Charts contain safety feature information, results from frontal crash tests and theft
ratings.

Safety feature information covers driver and passenger air bags, anti-lock brakes,
adjustable shoulder belt anchors for more comfortable safety-belt fit and, for passenger
cars, improved side-impact protection.

Features are shown as: S-standard equipment on all vehicles in that car line; N - not
available on any vehicle int hat car line; or A - available on some vehicles in that car
line.

Crash testing is expensive, so all vehicles cannot be tested every year. Cars, light
trucks, sport utility vehicles and vans that are new, popular, redesigned or have improved
safety equipment are selected for testing and bought from dealers.

Additional results for current models will be released at intervals throughout the
year. These vehicles are identified in the Crash Tests column as "to be tested." For
crash-test data on other vehicles tested since 1979, call Auto Safety Hotline: (800)424-
9393.

SAFETY SELLS

Auto-related deaths and injuries place a heacy load on society. In addition to
causing grief and suffering, vehicle crashes add billions of dollars to the cost of health
care and vehicle insurance.


Each year, some 40,000 Americans lose their lives in motor vehicle collisions. one
in 8.5 drivers is involved in an automobile collision and one out of nine hospital beds is
occupied by a victim of an auto-related incident.

Despite these grim statistics, the rate of traffic deaths per million miles driven is
steadily declining. Safer cars get partial credit for the encouraging trend. Each new
model must meet safety standards set by the National Highway Traffic Safety
Administration.

As the car-buying public becomes increasingly interested in safety, manufacturers,
are offering automotive safety features beyond NHTSA's minimium requirements. Though not
yet required by law, features such as dual air bags increase a vehicle's sales appeal.

SAFETY FIRST

No automobile is 100 percent safe or collision-proof. An experienced and unimpaired
driver is the most important safety features in any car. Never drive when you are:

Influenced by drugs or alcohol.
Ill or emotionally upset.
Fatigued - especially around your normal bedtime.

Keep your car in safe operating condition. Carefully read the owner's manual that
comes with your car and follow the manufacturer's recommended maintenance schedule.
Visually inspect tires, lights and fluid levels at each refueling. Make sure your spare
tire is inflated and pack a first-aid kit and flares in your trunk.

Make sure every person in your vehicle buckles up.
Correct and consistent use of safety belts is the best safety measure you can adopt.

BUYING TIPS

In 1994, the average cost of a car in the United States was $18,000. For a financial
decision of this magnitude, consumers need to be prepared when they enter the showroom.

Do some research. Check buying guides to narrow your choice in models and options.
Buying guides also help pinpoint prices.


Make safety a priority. Safety features such as air bags, anti-lock brake systems
and side-impact protection should be tops of your list. Also check for important safety
elements such as a right side mirror or a three-point safety belt system that has
adjustable shoulder belt anchors.

A weighty decision. Crash data show that heavy cars offer more protection than light
cars equipped with the same safety features.

Simple safety checks. During your test drive, make sure that head restraints, roof
structure or windshield designs do not interfere with your visibility. Look for interior
designs that avoid control knobs sticking out of the dash to reduce chance of injury.

Check out clones. Clones are nearly identical models built on the same platform and
marketed under a different nameplate. Prices and options vary. You could come out ahead
buying the high-end model - with standard ABS and dual air bags - instead of the low-end
model with those options added.

Shop around. Negotiate prices or enlist the help of a buying service. Investigate
financing options at the dealer and your bank or credit union. And check the fine print:
Does the contract include credit insurance, which may be available under an existing
policy you have?

Scrutinize service contracts. Does the warranty period overlap the service agreement
period? What repairs are covered and who can perform them? What is the cancellation and
refund policy?

VEHICLE RATINGS

The Importance of Crash Testing

Since 1979, NHTSA has been crash-testing vehicles through its New Car Assessment
Program. Crash-test results determine how well vehicles protect belted drivers and front-
seat passengers during a frontal collision.

During the crash test, dummies are placed in driver and front passenger seats.
Instruments measure the force of impact to each dummy's head, chest and legs. Tests use
all available restraints.


Federal safety standards require all passenger cars meet injury criteria measured in
a 30 mph frontal crash. NCAP tests are conducted at 35 mph to make the difference between
vehicles more apparent. Tests simulate damage equivalent to a head-on collision between
two identical vehicles, each moving at 35 mph. This is the same as a vehicle moving at 70
mph striking an identical parked vehicle.

Interpreting NCAP Crash-Testing Ratings

NHTSA recently revised NCAP crash-testing ratings to make them easier for consumers
to understand. A five-star rating indicates the best protection and one star the least.

Crash-test ratings are meaningful only when comparing vehicles in the same weight
class. Results do not reflect the extent to which an occupant in a light weight vehicle
could be injured in a collision with a heavier vehicle.

1995 NEW CAR SAFETY FEATURES

Manufacturers provide buyers the most complete information about standard or optional
safety equipment on their vehicles. Listed below are features that are especially
important.

Air Bags. Air Bags instantly inflate in frontal crashes at speeds as low as 15 mph.
They are designed to prevent occupants from hitting the dashboard, steering wheel or
windshield. Driver and front passenger air bags will be standard equipment in all model
year 1998 cars and all model year 1999 light trucks, vans and sport utility vehicles.
Many vehicles are already equipped with this important feature.

Front air bags do not eliminate the need for safety belts and they offer no
protection in rollovers, rear or side impacts. Safety belts help keep you in place should
a collision occur.

Caution: Never use a rear-facing child safety seat in a front seat equipped with a
passenger-side air bag. As the air bag opens, it may exert too much force on the safety
seat and injure the child.

Anti-lock Brakes. Anti-lock brake systems prevent a vehicle's wheels from locking up
during "panic" braking by automatically pumping brakes several times per second. This
allows the driver to retain steering control as the vehicle slows - a key factor in
avoiding a collision.


Even with ABS, hydroplaning and skidding can be caused by excessive speed or extreme
steering maneuvers. Be sure to read your owner's manual for more information about ABS.

Safety Belt Systems. Safety belt systems are your best protection in a crash. They
prevent you from colliding with the dash or windshield and hold you inside the vehicle.

Whether manual or automatic, safety belts are most effective if adjusted properly.
All safety belts should be pulled tightly across the pelvis. Some systems also offer
adjustable anchors that change the height of the shoulder strap to improve belt fit.
Check the manufacturer's instructions to properly adjust safety belts in your car.

Side-Impact Protection. Side-impact crashes are the second leading cause of death
and injury to passenger car occupants. At least 25 percent of 1995 passenger cars must be
equipped to protect the front and rear occupants during a simulated 30 mph side-impact
crash. The government requires all 1997 passenger cars have this protection. Many new
models provide this protection ahead of the required schedule.

Manufacturers can choose from a number of features to fulfill this requirement -
including extra structure, energy-absorbing foam, door panel or seat-mounted air bags - as
long as the vehicle passes occupant protection requirements.

THEFT RATINGS

Theft ratings are compiled from information provided by the Federal Bureau of
Investigation and vehicle manufacturers. NHTSA calculates a theft rate for each vehicle
based on the number of vehicles tolen and the number of vehicles manufactured. Based on
1992 data, which is the latest information available, a mid-point theft rate was
calculated. Vehicles with theft rates above or below that value was noted in the chart.

NHTSA requires manufacturers to mark targeted vehicle parts with the vehicle
identification number or provide a NHTSA-approved anti-theft device as standard equipment.

Many insurance companies offer discounts of 5 percent to 20 percent of the
comprehensive portion of insurance premiums for vehicles equipped with an anti-theft
device. Be sure to ask your insurance company if it offers all discounts for an anti-
theft device.

Contact NHTSA at (800) 424-9393 for specific information on vehicle theft ratings.