Of course, the arbitration provision in the state’s Automobile Lemon Law, and/or the car manufacturer’s warranty that may have an arbitration clause, are non-negotiable. In our state the Lemon Law requires NON-binding arbitration. In some states they can force you into binding mandatory arbitration with a biased arbitrator as happens in credit card and home warranty disputes, etc. Google your state and “Lemon Law” to find out how it works in yours. And demand to see the warranty book for the car before you sign papers. You can’t negotiate the state law or the manufacturer’s warranty but knowing what they are is a factor in your decision.

We too would’ve fixed up the old car rather than enter the trap of binding mandatory arbitration with an arbitration firm chosen by the other side!

BTW, a couple other things we refused in the car purchase, that we have never encountered in past purchases, and that I believe should be avoided: One is the dealer wants you to sign over title to your trade in before the deal is made so they can theoretically take ownership of it before you’ve actually agreed to buy a new car. The second is a clause that says if they get less than they thought they would for your trade in when they sell it, they can come back after the deal is done and get more money from you. We refused both of these but ended up not doing a trade in anyway. We kept our old car and will sell it privately if and when we choose to…dealing w/the dealer’s tactics was just too slimey and we wondered what else they’d pull.