Dealing with Dealerships
Most new car dealers are honest, but there are some who will scam you.
Read our annual Top 8 New Car Dealer Scams.
No part of the car buying process can be cheater proof- tread carefully and be cautious. Do your research outside of the dealership so you avoid dealer scams.
Dealer Scam #1: Selling you a car you don’t want at a price you don’t want to pay
Avoid being talked into a car you don’t want, know what you do want, from the broad to the minute, and stick to it- and that includes price too.
Dealer Scam #2: False advertising and bait and switch
Ads can be misleading, know the fine print and have a copy in hand. Don’t let advertising get you in the door and fool you into a poor decision- like an ’08 model instead of an ’09 model.
Dealer Scam #3: Making false promises
Don’t take possession of your new car until all aspects of the deal are clear and complete! That includes buffing out that scratch on the bumper, installing the weather guard floor mats you bought and having the valet key in hand. Be patient, because once you drive off that lot chances are all else will be forgotten.
Dealer Scam #4: Your trade in vehicle is worthless
Dealers want to makes deals- know your vehicle trade-in value.
Dealer Scam #5: Fees
The price of the car is not the price you’re going to be paying. There are countless fees you must be aware of- some legitimate and others not. Sales tax and vehicle registration are set by your state. Doc fees and dealer fees are typically part of the package but you should find out ahead of time what these fees are so you know the add-on price. A doc fee may be regulated by your state, or may be a charge set by the dealership just like the dealer fee. Knowing the amount of these two fees may help prevent last minute price shock. There’s also an advertising fee that will pop up when you go to buy a new car- if the advertising fee is listed in the vehicle’s invoice chances are it’s a permissible fee, if your salesperson is writing the fee into your bill of sale- not too legitimate. Additional dealer markup fees are also bogus.
Dealer Scam #6: Credit problems and financing
Know your credit score and financing options from outside sources. Don’t let dealers belittle you for your financial situation, don’t let them toy with you or stick you with an unjustifiable high rate. Don’t drive off in a car that is yet to be solidified in a financial contract, you may get stuck with a higher interest rate than you bargained for.
Dealer Scam #7: Options, accessories and extras
Evaluate the warranties and options being offered. If you’re watching where your money goes during your car purchase, be guarded and watchful when it comes to this part of the deal. Chances are you don’t need to buy the extra two year car warranty right then and there- you have four years to make that decision. Does the tire warranty being sold allow you to get your flat fixed anywhere or does it have to be at the dealership?
Dealer Scam #8: Driving away in a lease or used car
Much like Scam #1- know what you walking in for and don’t drive out with anything less. If you’re shopping for a new car purchase don’t change your plan mid shopping experience and decide it’s okay to lease. If you’ve decided to explore other vehicle/purchasing options reorganize yourself and begin researching and come back to the dealership another day. Be a smart consumer.
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