Dealer Car Selling Tricks To Watch Out For
This article shows how new and used car dealers use financing and add-on tricks to get a little extra money out of you, the consumer.
One of the toughest things in life is haggling with a car dealer. These dealers will stop at nothing to try and trick you into thinking you are getting a good deal. In actuality, they are trying to squeeze every little penny out of you that they can get. There is only one way to stop these travesties. That is to be informed about these tricks.
The first of these is that the dealer will give the consumer an inflated car payment based on a higher interest rate than the going rate. If the rate is currently 8%, and the dealer offers you 10%, he pockets all the extra money. The consumer can protect against this by calling a bank and get the going rate. When the dealer tries to give you a higher rate, refuse it.
Another trick is in the selling of car “extras” such as an auto alarm or extended warranty. The dealer can charge up to $1000 for these alarms and upwards of $2000 for the warranty. In actuality, it costs the dealer about $50-$150 to install a car alarm and $400-$900 for the factory extended warranty. The consumer needs to be wary of these ploys. Cheaper extended warranties can be bought through other companies such as GEICO. Alarms can also be purchased cheaper just by looking up a specialist in the Yellow Pages.
A third scam is in the charge that dealer hands down to prepare the car for purchase. An average charge is $150-$200. Avoid this at all costs! The dealer is already paid by the factory to prepare these cars, so just refuse to pay this or go elsewhere.
This is just a few of the many tricks that the dealers will use. There are ways for the consumer to avoid falling into any of these pits. First, be prepared when walking onto a car lot. Research the information thoroughly. This will include knowing bank rates, car values, etc. Don’t rely totally on information gained from the internet. Although the internet is sometimes a good source of information, it often provides many sites with inaccurate information. Last but not least, don’t think just because a dealer is part of a special buying program that you are getting the best price. Shop around. You can always come back to the first dealer if he does happen to have the best deal.