Used Cars Consumer Reports

Do pay the down payment with a credit card. If the dealer goes out of business before you can pick up your car, challenge the payment with your card issuer. Don’t sign any forms with items left blank. A dealership could falsify information such as the customer’s income or the size of the down payment on loan applications.

Do make sure the dealer pays off your old auto loan promptly, if that’s part of the deal. If a dealer goes out of business before doing so, buyers could be left holding the bag for payments on cars they no longer have.

Don’t agree to be responsible for any extra interest on loan payments for the trade-in after you’ve signed the bill of sale.

Don’t drive the car home before the financial paperwork is completed. That has often resulted in so-called “yo-yo” or “spot” deliveries, when the dealer calls the buyer back, claiming the financing fell through, to get him or her to sign new paperwork at less favorable terms.

Don’t take delivery of the car if additional work needs to be performed on it, such as a repair or accessory installation. If a dealer goes out of business, it can be hard to get the work done.