How can I protect myself from a failing dealership?

When a dealer has folded, some car buyers haven't received an expected rebate. Or the dealer doesn't pay off as promised the loan balance on a trade-in, leaving the consumer holding the bag for a vehicle no longer owned. Take these precautions:

• Use a credit card to make a down payment, order parts or accessories, or pay for service so that you can challenge the payment with your card issuer if a failing dealer doesn't come through.

• Try to pay off your loan before you trade in your car. Allowing a dealer roll it over into a new loan is a bad financial move.

• If a dealer has agreed to fix something or provide a service or accessory for your new car, make sure it's done before you take the car home. If you get caught short, contact the automaker's customer-service department to see what recourse you have.

See our new and used car guides for more information and advice on car buying.