CONSUMERS FOR AUTO RELIABLTY AND SAFETY

• Check Consumer Reports online at www.consumerreports.org, or read Consumer Reports Car Buying Guide, available at bookstores and public libraries.

• Use Consumer Reports car pricing service. New car buyers who use this service save an average of $2,200. No computer access? For new or used vehicles, call: 1-800-258-1169. (This service costs about $12 and requires a credit card.)

• Or, after you decide on a particular model, ask a bank or credit union to show you the Kelley Blue Book, or check it out online at www.kbb.com. Also check classified ads in local newspapers. Prices may be lower in your area.

• Join a credit union. Credit unions often offer better rates than banks. Membership requirements vary. Look up "Credit Union" in the yellow pages, call around, and find out how to join.

Know the Score

• Find out your credit score by asking your bank or credit union, or checking online at www.myfico.com (for about $12) or at e-loan.com (for free). Figure out just how good your credit is, and take steps to make corrections and improve it.

• Check out interest rates online at e-loan.com or bankrate.com. Don't get financing from a dealership unless they can beat the rates you could get online or from a bank or credit union.

• Ask online lender, bank or credit union to pre-qualify you for a loan.

• No computer access? Shop around at 3 or 4 banks and tell them you are comparing where you can get the best deal. If one offers you a loan at 6%, see if another bank will beat that offer. Make them compete for your business.

What can you do if the dealer
already sold you phony financing?

You may be able to refinance your auto loan and save a bundle. Many states' laws forbid auto dealers and lenders from charging you a penalty for switching to a better interest rate. Refinancing an auto loan is far simpler than refinancing a home mortgage.

The Los Angeles Times reports that Corey Young, a Brentwood medical-plan salesman, switched from a loan at 8.9% to a loan at 6.03%. He saved about $1,300. The only fee he paid was a $15 lien transfer fee. Another consumer whose credit had improved saved $4,500. (Los Angeles Times, September 22, 2002)

• Check out refinancing options at online lenders such as e-loan.com, lendingtree.com, or peoplefirst.com.

• No computer access? Take a copy of your auto contract to 3-4 banks and see what they offer you. To make sure multiple credit checks don't harm your credit score, do your comparison shopping within a 30-day period.