Top Ten Ways To Get Shafted By A Car Dealer
(1)
Believe the newspaper and TV ads.
It never ceases to amaze me how outrageous and unbelievable the car
dealers’ claims are. Just when I think that they can’t get any worse, I
see one that tops them all. Last month, one dealer was advertising in
the newspaper and TV that if you bought one vehicle from him you got a
second for nothing. The “facts and fine print” would reveal that the
first vehicle was a very expensive one with a huge markup of over $6,000
and the second vehicle was only the “use” of one for two years... a
lease. My father always said, “If it sounds too good to be true, it
probably isn’t”. Astoundingly, the general manager of this dealership
had the gall to say on TV, “This is not a gimmick”!
(2)
Buy a car on
impulse on the first day you start shopping.
Can you believe that this is the way most people buy cars? It truly is. There is
something about a new car that excites people and appeals to them on an
emotional level. People let their feelings short circuit their logical thought
processes. Overcome that emotion that tells you that you must drive home that
shiny new car right now. Go home and think about it. Talk it over with your
spouse and friends. Research the model of car you looked at and the price on the
Internet. Always drive the car you chose before you sign any papers. You should
take at least a week or two in the decision making process before you buy a car.
(3)
Trade your old
car in to the dealer you buy from without shopping its value.
Most people have no idea what their trade-in is worth when they come in to buy a
new car. They rely entirely on the appraisal by the selling dealer. The dealer
can make it appear that he is giving you a lot of money for your trade by taking
some of the high markup on the new car and showing it as part of the appraisal
value. Check Kelly Blue Book (kbb.com) and Edumnds.com on the Internet. Get at
least 3 bids from other dealers of the same make for your trade. Make the
purchase of the new car and the sale of your trade two separate transactions.
Remember that you do get a sales tax break by trading in your car to the dealer
you buy from.
(4)
Use the
dealer’s financing without checking with your bank or credit union.
Shop for the best price on your financing just like you shop for the best price
on your trade-in and the best price on new your car.
(5)
“This low
price is good today only”.
This is one of the favorite ruses used by car sales people and dealers. In 99%
of the cases, you can buy that car for the same or an even lower price later.
The only time that you can’t is when factory incentives expire on a certain
date, typically at the end of the month. If that is the claim, demand to see the
written factory incentive by the manufacturer.
(6)
“Make me a
written offer with a deposit and I will submit it to my manager”.
This is S.O.P at most car dealerships. This is to get you psychologically
engaged in the buying process. Once you have signed a buyer’s order and written
out a check, you will remain in the dealership for a while and are more likely
to buy. The salesman knows that. Insist on getting their best price on the car
you have selected. You should never make the first offer. Once you have their
price, compare it with at least 3 other prices from other dealers on the same
make and model.
(7)
Take this new
car home and see how you like it.
This is the famous “puppy dog” technique so named because once you take a puppy
dog home overnight, who has the heart to return it the next day? You, your
neighbors, and friends will see that shiny new car parked in your driveway. It
sure looks good! How can you explain to anybody that you didn’t buy it?
(8)
“I’ll buy the
car if you can get my monthly payments below $___.__”
Most of us tend to think in
terms of our monthly budgets. We might feel that we can afford a new car as long
as it costs us less than $350 per month, but there is a big difference between
$350 per month for 36 months and $350 per month for 72 months. I recommend that
you finance a car for no more than 42 months, preferably 36.
(9)
“You have my
word on that.” Be
absolutely sure that every promise or commitment made to you by your sales
person is in writing and signed by a manager. That salesman may not work there
when you have occasion to ask for that “free loaner car” that he promised you
anytime you bring your car in for service.