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10 sneaky car dealer tricks

Here are some tricks of the trade -- some more devious than others -- that you might encounter when you shop for a car.

By Stacy Johnson Dec 27, 2012 4:54PM

This post comes from Angela Colley at partner site Money Talks News.

 

Money Talks News logoThe first time I bought a car, I got ripped off. I traded in my car for less than it was worth, bought a clunker for more than I should have, and got talked into a $950 warranty to cover rust as I was finalizing the paperwork.

 

The salesman saw me coming and pulled out every trick in the book -- from saying my credit wasn't good enough to tacking on "mandatory charges" during the final sale. 

Here are some tips you can use to avoid becoming the victim of common dealer tricks of the trade:
 
1. Payments

Dealers want to talk payments; you need to talk price. For example, the last dealer I met asked me how much I could afford to pay a month. When I didn't answer, he offered a "great deal" at $385 a month. He never mentioned the total price of the car or the length of the loan.

 

By focusing on payments and not price, it's easy to trick consumer into thinking they're getting good deals. Steer the conversation to the total price, and let the payments take care of themselves. 

 

Image: Car salesman showing couple new silver hatchback in car showroom © Juice Images, Cultura, Getty Images2. Loans 

A dealership can make as much money on the loan as it can on the car, which is something it's not likely to disclose. Instead, the salesman will make it seem that he's doing you a favor by getting you a great interest rate -- or getting you a loan at all.

 

Don't fall for it. Financing is big business for dealers, and you're not winning a prize when they get you a loan. 

 

Step One in any purchase that requires a loan is to secure financing. Never head to the lot without first shopping for -- and getting preapproved for -- a loan. Use online auto rate searches and talk to banks and credit unions to find the best rate. Then apply and get approved. This serves two functions: You won't overpay for dealer financing, and you'll be ready to pull the trigger when you find the perfect ride.

 

3. Bait-and-switch advertising

Bait-and-switch gets you in the door by advertising a super deal on a car, but switching you to another, lesser deal when you show up.

 

Read the fine print before you go to the dealership. If you're not sure, call ahead.

 

4. High-pressure tactics

The salesman's goal is to close the sale today, and he'll try any number of sales tactics to make it happen. My personal favorite: Insisting the car won't be there tomorrow.

 

Don't bite. If you feel uncomfortable or unsure of any decision, ask to speak to someone else or just walk away. Keep looking until you find someone you can work with.

 

5. Extras that add up

Car salesmen work on commission, and the more you pay, the more they make. One way to increase the sale price is by adding on extras, like wheel and tire protection, a warranty extension or rust protection.  To help sell you on these, the salesman will break them down to the total price per month. For example, when I bought rust protection, the dealer told me it was a "great service for only $25 a month." I ended up paying $900 over three years for something I didn't understand or even know how to use.

 

6. Undervalued trade-in

If you're trading in your current car, know its value. These sites can help:  

Also, check eBay to see what cars like yours are selling for in your area. 

 

If you're trading in, don't expect any dealer to offer your car's retail value. To get maximum value for your car, sell it yourself.

 

7. Manufacturer's suggested price

The "manufacturer's suggested price" is often used to make a deal sound better. For example, if the manufacturer's suggested price is $35,000, but the dealer is asking only $32,000, you might think, "Hey! I'm already getting $3,000 off and we haven't even started negotiating."

 

Sites like KBB.com can tell you what people are actually paying for specific models.

 

8. Your credit score 

When I was buying my first car, the dealer pulled my credit report and told me my credit wasn't that grea,t but that he'd be willing to work with me. I felt a sense of relief, thinking, "At least I'm getting a loan." I later found that my scores were fine and that I could have gotten a better interest rate elsewhere.

 

You can get your credit scores for a fee at the websites of Equifax, Experian and TransUnion or from myFICO. If you find that your scores are low, improve them before you apply for a loan.

 

9. Negotiations

Buying a car isn't one big transaction; it is actually three smaller ones: getting financing, pricing the trade-in and buying the car. I didn't realize this when I went to the dealership alone for the first time. Rather than look at each piece, I looked at the total cost and thought, "OK, I can afford this."

 

Negotiate each part separately to get the best deal. 

 

10. Mechanical issues

Don't take the dealer's word for the condition of a used car. Never buy any car from any source without first taking it to an independent mechanic for an unbiased inspection.

 

More from Money Talks News and MSN Money

 

 

Tags: car buyingcar loanscar shoppingcarsMoneyTalks NewsStacy Johnson
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414Comments
TriedandTrue
Feb 5, 2013 8:51PM
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I first off want to say that i work in sales at a very reputable dealership.  If what this writer says is true, it's amazing that any dealership is still in business.  Its hard to believe any dealership can do this kind of thing and get any repeat or referral business.  We as a dealership are well aware that people are more educated about car buying now than ever before and it has helped our industry to become more competitive and consumers are benefiting by not getting ripped off like they used to.  I feel like this article was written 20 years ago and recently dusted off because the author had nothing better to do.  A lot of what's in this article is old news, and unfortunately puts many people on edge when buying a new car instead of them being excited to have that new ride.  Its not fun for them, its tough for us to break that stereotype. I'm doing a job like anyone else, trying to support my family and get people a nice new vehicle; does it have to be difficult? Some of this info is helpful, like selling your trade yourself.  Dealerships can only assume so much risk on a trade, its only worth what we can sell it for within 60 days, after that it goes to the auction and we may lose money.  MSRP is a great place to start negotiating, but realistically there is very little margin in a new car, sometimes less than a $1000. Loans are different based on the dealership, we don't loan money ourselves, we use local banks and credit unions and consistently beat rates that our customers come in pre-approved for, why wouldn't you want to use us if we can save you money? A lower rate is a lower rate.  As a sales representative it is my goal to make sure that my customer is completely satisfied so that they will not only buy their next vehicle from me, but will also refer their friends.  Any sales person that doesn't exude this same level of service isn't worth buying from, in that respect the author was right, just walk away.
strat800
Feb 5, 2013 7:15PM
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there are "tricks to the trade" in every business as they are all in league with satan!  remember, god  said the the devil will rule the earth!!
Leiopold Bloom
Feb 5, 2013 6:56PM
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There are predators and there are prey.

Predators, at least the most successful of them, have evolved or learned advanced sensing mechanisms to recognize, and the distinctive ability to capture, prey. Once their prey has been positively identified as qualified and competent the predator will employ a number of sophisticated techniques, including, but not limited to, manipulative language based on a series of well worn and carefully crafted open ended questions, in an attempt to gain control of and exert influence over its prey. The end game of the predator is typically to extract -as a means of transfer- as much of the available wealth of its prey as possible, for it is often shared with the pack, herd or tribe. As a result, both the predator and prey too often regard their relationship as a zero sum game. 

Every member of our species is potential pray for another. Most possess at least one, and some several, lines of defense against predation, The most effective of all lines of defense is a phenomenon called "advanced education". The advancement of personal intellect (learning) pertains to or embodies ideas, practices or attitudes that can lead to increased levels of enlightened thinking which often acts as a catalyst to surpass and defeat the firmly established and entrenched practices of the predator. The inevitable outcome of higher learning by the prey prospect can only be an alteration or movement away from a partisan asymmetrical relationship into a more symmetrical symbiotic relationship where one will see a break down of the ill-suited win/lose zero sum and its transformation to a more congenial win/win.



 

dexter426
Feb 5, 2013 6:50PM
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consumers are the biggest liars , if thier car is patched up they wont tell the dealer buyers are liars too!!!
AJD0430
Feb 5, 2013 4:31PM
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Isn't this about the same as Obamaspeak?
Camaro976
Feb 5, 2013 4:16PM
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Sounds like the chevy dealer in cocoa beach i dealt with.
QB4th
Feb 5, 2013 4:15PM
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Stacy Johnson? Obviously you know nothing about the Auto Industry. Would like to see you try working at a dealership. Its obviously your Degree in Journalism is a farce.

 

Beckett122663
Feb 5, 2013 4:05PM
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i would honestly rather eat bees then buy a car it  used to make me sick even think about it.  I purchased the last two cars I have owned (both yr old toyotas)  from one dealer and I would go back there in a minute even though I now live 6 hours away from his dealership.  This has been the only car salesman that I felt I could trust and always gave a me a fair price.   My current Toyota has 90,000 miles plan on keeping it a while.
Darknite
Feb 5, 2013 4:02PM
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obviously the "author of this article isn't too bright . This article is a load of crap ! Perhaps doing some research before writing an article is in order . Does everyone have the same credit ? How about the same income ? What about the debt to income ratio ? Also how do you get preapproved on a vehicle that a) you haven't even found yet ? and  b) don't know the cost of ? The reality of it is some of the things you call tricks are actually tools that dealers use to help morons like you purchase a car . An example of this is the monthly payment you mentioned . You would be the person that negotiates the price of a vehicle to $20,000.00 and then gets pissed off that the payment is more than $199.00 a month ! Whether it's payments or price the bottom line remains the same ! The math behind the payments doesn't change . As I always say six of one half dozen of another either way your there .
Richard-NC
Feb 5, 2013 3:40PM
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Doc fees are the rip off $499 for paperwork.  I know I do not negotiate price with the grocery store or at the drive through at McDonald's but they also don't charge me a cashier fee or drive through fee.
LIZZIEC
Feb 5, 2013 3:24PM
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This is another outdated story. Some of the "tactics" mentioned in the story are as outdated as flip phones. When will people realize that everyone makes a profit; your barber, your dentist, your grocer, your internet provider, etc.

"When I was buying my first car, the dealer pulled my credit report and told me my credit wasn't that grea,t but that he'd be willing to work with me. I felt a sense of relief, thinking, "At least I'm getting a loan." I later found that my scores were fine and that I could have gotten a better interest rate elsewhere"-how long ago was that????

With the internet comes great resources for research, the consumer is no longer the "victim."

Move on, update your topics PLEASE!

ash54268
Feb 5, 2013 2:46PM
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I've worked in the accounting department in automotive since 2008, right in time for the huge crash. Yes, we make money off financing. A lot of the time its the only place we make money because there is hardly any to be made on new car sales. Check BBB, dont look at google reviews or anything like that, most people only write reviews when theyve had a bad experience. And those happen, EVERYWHERE. Just because 10 people have posted bad reviews doesnt mean its a bad place. What about the thousands of other people that are in and out of the store every day?

I also worked at a used car franchise for a little bit.. They were pretty stereotypical, very shady place.. But their reviews were good. So yes, do your research on the vehicle, your trade in, etc.
Go to a good place and you won't get screwed. But don't go in trying to make the dealership lose as much money as you can.. Work like that and there will be no one to supply you with transportation anymore.
Treat your salesmen with respect, and they'll do the same. If they still are too pushy or feel kinda sleezy, ask to speak with a manager or someone else. If all else fails, try somewhere else. We aren't all bad.

Patriot Pro
Feb 5, 2013 2:02PM
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Cedit reporting Agencies should be banned from the US>  These agencies are probably bank rolled by the Banks and the Car Dealers.        
Ghost Rider
Feb 5, 2013 1:58PM
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why always pick on car dealerships when there are other problems to look at. This is a dead horse subject anyway. every two weeks they bring back the same old thing. think of something new for a change.
BIGBLUE61
Feb 5, 2013 1:55PM
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Your advise is out dated. every customer is provided their credit score at the time of sale. Your advice for undervalued trade-in, does not list any of the current sites  that will buy your trade. Not one of the sites you listed for "help" will write you a check for your trade. So please take the time to research a topic before you write about it. Or find a job your qualified for.

 

FALCON63
Feb 5, 2013 1:48PM
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Major sized dealerships,you know the ones with multiple franchises are the best at fleecing the consumer. A friend working for one of these said it was required to go early Saturday morning once a month with all the franchises present. They gave major cash prizes to the finance department of the month for the highest number of loans at the highest rates ! 10 to 15 grand was not unusual to the winning group ! Basically the sales people have the job of making you feel you got a good deal and then everything changes when you are sent into finance. If you see purple shirts with white collars and expensive bling watches on them, sit back and watch the show, first ,it's your credit not high enough to get the rate and you must puchase extended warranties, no we will finance you better, don't come in with a check from your own credit union or bank, lets write a policy to protect your loan to be paid if you fall off a ladder and die !

Basically the goal is to never let you buy it for what was shown and agreed to with the sales person. For you, get the invoice for the exact car, shop that exact car and do everything to get it at that price have your own finance setup so you absolutely know they can't do you in finance and refuse every cherry they try throwing at you. And never ever show happiness or emotion about the car selection you made and always be ready to walk and tell them sorry i'm going to shop elsewhere next week. One last idea, shopping on the last day of the month is fun as the dealership is trying to "PAPER" as many buyers that day to meet their goals for that month and you just might find them flying around trying to get your deal done. 

slinger black (slinger black)
Feb 5, 2013 1:45PM
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my familys been in the business for over 40 years......i sell cars is spot on.......we have a saying in the business....."buyers​ are liars"    and its true.....all these articles brag about how bad we people are.....its the consumer that lies about there credit, how much they make, and what they owe on there car there trading....see it everyday of my life.  We are people that have a product. We want to sell that product for a profit. We have bills and overhead you cant even begin to wrap your lil heads around........lets look at it this way......try goin to work today and when u get there your boss says.....lets see bill...you make 18 dollars an hour.  Today your goin to make 10...hows that sound?   You wouldnt like it....and either does anyone else!  Were all out to make a profit and pay our bills too!.....are there bad dealers....some.....​.but most folks are just normal people tryin to make a living...Its idiot arcticles like this that make our jobs hell.
maxlotto1
Feb 5, 2013 1:37PM
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To all those sales people who are so darn honest and upfront, let us hear about how you treat women buyers the same as men. Can't wait for your we treat them the same claim. Not.
De Lusional
Feb 5, 2013 1:29PM
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Cash rules here, eliminating the parasitic commissioned snake oil sales person 
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