According to the Consumer Protection Bureau of the Attorney General's Office, purchasing a new car is one of the most expensive purchase decisions a consumer will make, and one which can significantly affect a household budget. February marks the Presidents Day Car Sales Days, which traditionally means that many consumers will be out shopping for a new or used vehicle in the next few weeks.

Prior to shopping for a new car, Attorney General McLaughlin reminds consumers that there is great benefit in doing some research to prepare for the car buying experience. According to McLaughlin, there are various resources for comparing prices, and obtaining safety records. Information can be obtained from newspaper advertisements, libraries, bookstores, magazines such as Consumer Reports and the Internet.

"An informed consumer with a plan will fare much better than someone who relies on instinct, impulse and verbal assurances," McLaughlin stated.

The Consumer Protection Bureau offers some suggestions for consumers contemplating a car purchase:

• Shop around to get the best possible price, and be aware that negotiating for the best price is always an option.

• Know the terminology:

      Invoice Price is the manufacturer's initial charge to the dealer, and the Base Price is the car's cost without options included in the price.

• Determine the Trade-in value of your car. Check with your bank or your library to see if they may have a copy of the "blue book" used by dealers to guide them when they make an offer. There are also online resources to help you find the trade-in value of your car.

• Don't leave a deposit with the dealer if you are still shopping around. Unless the paperwork you are asked to sign states that the deposit is totally refundable, you are likely to forfeit that money if you choose to purchase from another dealership.

• Make sure any "warranties" that are part of the agreement are fully explained in writing and that what they cover is clear.

• Test drive each car you are considering.

• Compare financing resources in order to get the best rate. Check with credit unions and/or local banks. Remember that a loan rate is also negotiable. Shop around for the best rate.

• Be aware that verbal representations made by a seller may not be enforceable. Make sure that all the terms of the deal are in writing.

• Consider carefully your two basic payment options, paying cash, in full, and financing: Be aware that you will pay more when financing your purchase, depending on the amount of interest. Before signing your name to the purchase agreement be certain of what the increased cost of the car will be; the number and amount of monthly payments; the length of the payment; the Annual Percentage Rate (APR); and determine whether the payments are affordable for your budget.

• It is also critical for consumers to be aware that there is no so-called "cooling-off period" under New Hampshire State Law for car purchases. While other states have a three day right of rescission in which to cancel a car deal, New Hampshire does not.

Purchasers of cars need to do their homework and ask questions. By considering the steps outlined, Attorney General McLaughlin states that the Bureau hopes to heighten consumer awareness and ensure that New Hampshire car buyers have a positive experience both during the Presidents Day sales period and throughout the year.

For additional information on purchasing a new or used vehicle, please contact the Attorney General's Consumer Protection Bureau at 271-3641, or visit our website.