A car purchase is one of the most exciting purchases a consumer makes. But let’s face it, cars are expensive and you have to figure out how to pay for them.
Before visiting the dealership, consumers must review their finances and evaluate payment options. Informed buyers allow for making the best car buying decisions. Car salespeople are known to pressure potential buyers in to selecting vehicles from their lot — often ones the consumer may not want or be able to afford.
Four steps to prepare for purchasing a vehicle
STEP 1: Obtain current copies of your credit reports
Lenders request access to consumer’s credit files in the process of evaluating the buyer for a new loan. Credit reports provide detailed information related to 
the consumer’s credit accounts, including balances and payment history. When reports reflect incorrect information, lenders may deny applications for credit.
Before submitting a credit application, consumers should obtain current credit reports from each bureau – Transunion, Experian and Equifax — and evaluate the reports for accuracy. If there are errors, written disputes must be sent to the bureau.
To obtain credit reports, prepare a request and send it by US Mail to the bureau. The letter should be accompanied by two forms of identification, such as a current driver’s license, a utility bill, or pay stub. It may take about two weeks to receive reports from the three bureaus. Alternatively, you could visit annualcreditreport.com to obtain reports online.
STEP 2: Review credit reports for items that could hurt your Credit Score
Banks, credit unions or financial 
institutions review the consumer’s credit reports and scores in the process of determining whether to extend credit or not. Various factors are considered in the evaluation process:
- Payment history: Were payments made in full and on time?
- High Debt to Credit Utilization: How much credit is used compared to the total amount of credit that is available?
- Multiple Hard Inquiries: How many credit inquiries have been made within a period of time? Would this borrower be considered high-risk?
When there are errors on credit reports, the consumer must take steps to correct them. Sometimes, tradelines are not listed accurately by lenders or creditors on credit reports. These errors, which could result in lower credit scores, must be corrected in advance of a new credit application.
STEP 3: Evaluate options to pay for the new car
Determine the price range of the car you can afford before deciding on the car you want to drive. Evaluate your finances and determine how you’ll be able to pay for the vehicle.
Should I pay with cash?
The advantage of purchasing a car with cash is that you own the vehicle free and clear. You will not pay interest on monthly loan payments, or have lease payments which do not build equity in a vehicle that can be sold later. However, car buyers must consider whether it makes the best financial sense to allocate funds to purchase a car with cash.
Should I enter in to a lease?
Leasing a car allows for driving a “better car” for less money. This option can be advantageous to some consumers as there is no down payment, lower monthly payments, and repair costs can be covered under the manufacturer’s warranty. At the end of the lease, the vehicle is returned to the dealership — you don’t own the vehicle. Issues such as early termination costs, mileage overages, or wear-and-tear must be addressed with the leasing company. After leasing, some consumers may choose to purchase the vehicle they had leased and enter a finance agreement to pay for it. Others may choose to enter a new lease for a brand new car.
Should I finance the vehicle?
The process for selecting a car can be tedious. Decisions involving which manufacturer, model, color, and options, as well as availability can make the purchase difficult.
Equally important is the process to determine how to pay for the car. Questions such as: Do I have funds to put towards a down payment? Do I have a vehicle to trade? How much will the dealership give me for the trade? Which lender provides the financing rates and terms? Do I need to purchase a warranty?
Shop for the Financing
Once the decision is made on the specific car you want to buy, and you know how much it will cost, it’s time to shop for financing. Whether its with a bank, credit union, or financial institution, explore and compare loan offers for interest rates, loan terms, and monthly payment amounts. Most dealerships encourage buyers to work with their finance manager for these arrangements. But beware of add-ons, such as extended warranties, GAP insurance, or extra equipment which add to the total cost of the vehicle.
Do not feel pressured by the salespeople at the dealership. Take your time to review the documents. Think about the following:
- Shop for the car, then, separately, shop for the financing.
- Review the Paperwork: Does the Buyers Order list all items you want on your car. Do the numbers add up?
- Is the amount of the down payment listed correctly?
- Is the amount of the trade listed correctly?
- Read the loan agreement carefully before signing. Do you agree to the terms? Payment due date? Do the numbers add up?
If the paperwork is not correct, demand that it be corrected. If you’re not satisfied, you can always go elsewhere.
STEP 4: Cost of Ownership
Do not overlook the cost to care for the vehicle. On average consumers keep a car for about 6 years, whether it’s new or used, . Estimate expenses such as, maintenance, repairs, insurance, and fuel. No matter which car you buy, maintaining the vehicle is an important part of your investment.
Legal Evaluation of Credit Reporting Problems
Have you been denied an auto loan due to errors on your credit reports? Flitter Milz is a nationally recognized consumer protection law firm that represents consumers in matters against the credit bureaus for inaccurate credit reporting. Contact us for a no cost legal evaluation.
Pictured: Attorneys Cary Flitter (center), Andy Milz (left), Jody López-Jacobs (right)
In online complaints, Titan Solar has been accused of engaging in predatory marketing and of misrepresenting facts. Sometimes, Titan Solar is accused of not informing the customer that installation is conditioned upon agreeing to a decades-long loan or power purchase agreement, and the contract might be hidden from the consumer. Titan Solar’s finance company partner may also pull your 
some other legitimate business purpose for pulling your credit. Often, during the process of applying for new credit or utilities, or interviewing with a prospective employer or landlord, there may be a request to access the consumer’s credit file. The consumer must provide written permission for his or her credit file to be accessed.
Lenders evaluate the number of hard inquiries that appear on a consumer’s credit reports during the credit application review process. Although hard inquiries represent one factor in the calculation of credit scores, too many hard inquiries in a short time could impact scores negatively and jeopardize the approval of a new credit application.
Andy Milz is a contributing author to REPOSSESSION, National Consumer Law Center (10th ed. 2022) Carolyn Carter, Andrew Milz, et. al., considered the leading 
Flitter Milz was presented with the Equal Justice Award in recognition of support to legal aid programs that allow low-income consumers to seek economic justice.
Cary Flitter was honored in May 2022 at the Fête 4 Justice hosted by Legal Aid of Southeastern Pennsylvania for his continued support of their mission to provide free civil legal aid to low-income consumers in Bucks, Chester, Delaware and Montgomery counties which surround Philadelphia, Pennsylvania.
Philadelphia Legal Assistance — Jubilee for Justice
Flitter Milz represents people in individual and class action lawsuits with legal problems involving consumer credit transactions. Our attorneys evaluate whether a consumer’s rights have been violated — at no cost to the consumer — in matters related to credit reporting accuracy and privacy violations, wrongful vehicle repossessions, abuse from debt collectors, and consumer frauds, such as solar panel sales fraud. 
The three main national credit bureaus — Trans Union, Equifax, and Experian — have agreed to make changes in the reporting of medical debt. As of July 1, 2022, settled medical debt that would normally remain on credit reports for up to 7 1/2 years should come off the report. As a result, consumers may see an increase in their credit score, a benefit which can open doors to borrowing at more favorable rates for housing, loans and credit cards.
Let’s face it. Most medical debt is incurred unexpectedly. Patients visit doctors or seek medical treatment because they are sick or have had an injury. Due to the high cost of healthcare, many Americans have difficulty paying expensive medical bills to hospitals, physicians, labs and other medical providers.
Unfortunately, unpaid medical debt may be forwarded to a collection agency or law firm collector. Once in collection, negative tradelines appear on credit reports and credit scores may drop. Consumers then begin to feel the effects of a negative credit rating.
Attorney Andy Milz states, “Here at Flitter Milz, PC, we strongly believe medical debt should not be reported at all. Unlike a mortgage, credit card, or car loan, medical debt does not represent a financial choice, but is often a result of an emergency or hardship. And, even for the majority of consumers with some form of health insurance, getting the insurance company to pay the bill in its entirety is always a challenge. Inability to pay medical debts should not weigh down a person’s creditworthiness. Unfortunately, until now, health care providers, medical debt collectors, and the credit bureaus have been allowed to report this negative information.”
However, there is a complicated intersection between auto finance law and bankruptcy. Before taking any action, borrowers must understand the implications of bankruptcy and be able to determine the most prudent steps to take before and after a vehicle has been repossessed. In general, merely having your car or truck repossessed is not enough to warrant filing for bankruptcy. Let’s try to simplify it.
If your car was already repossessed, you have other rights as a consumer borrower, separate from any bankruptcy proceeding. Bankruptcy is only one tool or avenue if your car or truck has been repossessed – and it might, or might not, be right for your specific situation. Consult with an experienced consumer lawyer to understand your options outside of a bankruptcy.
If you’re concerned that the lender my repossess your vehicle, or perhaps thinking of filing bankruptcy to get your car back after repossession, 
Similar to purchasing other items for the home, when considering solar panels, homeowners must shop around, get quotes, and investigate solar panel companies to compare one offer from another. There are a wide variety of products on the market with varying levels of efficiency, durability, reliability, output and design. As well, there are a number of solar companies and installers — some are better than others. Check the company’s reputation to see if complaints been filed against them with the Federal Trade Commission, State Attorney General, or Better Business Bureau? Also, searching court dockets for lawsuits that have been filed against solar panel companies or their finance companies may provide insight to issues that other consumer’s have faced involving solar transactions.
of the benefits of solar power, the consumer is presented an iPad or tablet to sign, believing their signature gives the salesman permission to evaluate the property for panels. However, the signature, or initials, on an iPad may authorize the solar company, without the consumer’s knowledge, to:
Solar loans work like other home improvement loans. The loan is taken out through a finance company with monthly payments made to the lender for the purchase of the system. Just like researching the solar company, homeowners must research the best way to finance the solar power system. There are several companies, such as Goodleap, Mosaic, or Sunlight Financial, that offer loans for solar panels. But ask yourself, which one offers the best terms for me?
to-door sales companies who sometimes entice people to sign up for “free” solar panels. Hundreds of consumers have complained about Loanpal/Goodleap’s business practices to the Better Business Bureau. The Better Business Bureau has rated Loanpal an “F.” From customer reviews, Loanpal received only one out of five stars. In fact, some consumers complain that they never saw or signed a contract. When faced with accusations that the solar panel salesperson engaged in fraud — such as signing up a consumer for a loan without their knowledge or consent — Goodleap has attempted to distance itself from the solar panel company.
Read more below:
There are a variety of reasons why credit files get mixed. With the amount of information handled by creditors and the credit bureaus, mistakes are bound to happen. For example, information from an application may be keyed into a file incorrectly. Digits on a social security number may be transposed, or a name misspelled from an application. Those errors can pass from the original creditor through to the credit bureau. Or, the credit bureau mistakenly may combine credit files of two or more different consumers into one file. Unfortunately, the errors may not be discovered until the consumer reviews his or her report…usually after applying for new credit.
If you believe someone else’s information has been mixed with or merged onto your credit file, a 
The reporting bureau has 30 days to respond to your written dispute. If errors are not corrected, you may need to send a second dispute to that bureau, and possibly provide additional documentation. Or, you may need to write to the underlying creditor, explain the problem and request corrected information be sent to the reporting bureau.
The 
If someone else’s debt or a stranger’s account is on your credit report, Flitter Milz can help. Whether your credit file has been mixed or mis-merged with a family member, someone with a similar name, or a total stranger, your consumer rights may have been violated. 
Understand credit scores and credit reports
credit and obtain copies of his or her credit reports and credit scores.
Transunion, Experian and Equifax are the three main credit reporting bureaus. These bureaus provide credit reports which list specific information about a consumer’s credit activity and payment history. Lenders use these reports to help determine whether to extend credit or not. As well, other businesses such as insurance companies and utilities, or prospective employers and landlords, may request access to a consumer’s report for use in making decisions about you. 
Do you have errors on your credit reports? Problems getting credit?
Lenders are not required to notify the borrower in advance of an auto repossession. However, after a vehicle has been taken, the lender must send a letter to the borrower outlining terms to get the vehicle back — whether the lender is a bank, such as Well Fargo or Bank of America, a credit union, such as Pennsylvania State Employees Credit Union or Erie Federal Credit Union, or a financial institution such as Driveway Finance or PA Auto Credit. The repossession letter, often called a 
After the lender has made the decision to repossess a vehicle, arrangements are made with a repo agent who will locate the vehicle and take it, often without warning. In advance of the repossession, the repo agent must inform the local police department of their intent to seize the vehicle. The repo agent may come with a tow truck to the borrower’s home or place of employment. Or, they may track the vehicle 
finding it at another location, such as at a shopping mall, doctor’s office, or the address of a family member or friend. Sometimes at the time of purchase, the dealership may have installed a GPS tracking device or a remote control car disabler. The repo agent may use these devices to track vehicles that have been assigned for repossession.
In Pennsylvania, a repossession agent has to be licensed with the Department of Banking and Securities of the Commonwealth and may be hired by a bank, credit union or finance company to repossess cars, trucks motorcycles, RVs, powersport vehicles, boats or airplanes. If a vehicle is missing, the borrower should make calls to the local police and the lender to confirm it was not stolen.
