Car Dealer Scams


If you are looking to buy a car then you might think the safest place to buy from is a car dealer, since they should be the most knowledgeable and trustworthy people to buy a car from. However this is not always the case, some car dealers are out to make a fast buck and so will try anything.

Many people know what car sales men are like, and so hate the experience of buying a new car. Of course not all car dealers are the same, it is just unfortunate that there is no easy way to differentiate them.

Sometimes when you buy a car the dealer will charge you for the advertising fees twice, because they have already been added to the invoice the dealer received. To beat this one ask about advertising fees demand to see a copy of the invoice if you are not completely satisfied. They will usually also add a bogus processing fee of from $100 to more than $500 (the processing fee is pure profit for the car dealer that he does not have to pay any commission on to salespeople).

Cars are like any other consumer product, the more desirable it is the more somebody is willing to pay for it. Some dealers add on additional fees on top of the prices of the cars if they are very popular, this is not completely unfair as it should help to even the demand and supply functions out. However you should never pay over the MSRP of the car or even close to the MSRP, if the car is more highly demanded then the maximum you should pay is the MSRP (or better yet wait a few months until its popularity wains and buy it at invoice).

Some dealers quote a certain figure in an add for a certain car, but when it comes down to it the actual price is much higher than this (you may not be able to get one with no options, etc..). Make sure that you continually ask the dealer exactly what you are paying for and the exact price so that they realise that you are not going to take any messing.

When trading in your car there are also cons to be aware of, some dealers will quote figures when you are outside, but by the time you get inside these figures have vastly shrunk - or better yet, they will switch you to negotiating payments where you have no idea how much total you will end up paying and they will break it down as its only $25 a day, etc.... (Lets see, $25 a day is $750 a month and that is $9000 a year and $45,000 over a typical 5 year car loan - it adds up very fast and that may not include interest and compounding of principle! Lets say you only over pay by $5 a day - that doesn't sound too bad and the dealer seems like a really nice guy, right? $5 a day is $150 a month, is $1800 a year, is $9000 over 5 years too much you paid! Think about it).




Comments (3)

Greg
Said this on 12-30-2008 At 03:43 am
From one connoisseur of bad car salesmen all the other, I thought everyone would appreciate this... (warning: R-rated language)

http://www.youtube.com/watch?v=kBUHRTqcjtc&fmt=22
Paul Blakeman
Said this on 12-6-2008 At 01:12 am
I have been in the automotive business for 22 years. The car business, like ANY business has some bad apples. The overwhelming majority of people that work at a car dealership are honest, hard working professionals earning a living serving their clients. It can be difficult work with long hours, but car also be very rewarding.
One of the most challenging things that I encounter is the across the board generalization at the beginning of this article:

"Many people know what car sales men are like, and so hate the experience of buying a new car."

What a crass, ignorant generalization.
Can you imagine saying:

"Many people know what _________ are like" - Fill in your own blank.

A major part of my job is to help people buy the car that will fit their needs, within their budget. No diffrently than someone a the computer store, the local wine shop, or most anywhere. A major difference is that cars cost alot more. There are so many variables that assistance is often needed. Cars have become so technogogically complex that it takes instruction ang guidance to know what you are buying.
Do we make money selling something for a profit? Of course.
The car business has become a transparent industry.
Are there bad apples, sure. Just like and business.
My advice, given more than 2 decades in the business;

1) Find a reputable dealer
2) Get a reliable referral - everybody know someone with a car
3) Research what a FAIR price is, and be willing to pay it.

In this world you get what you pay for. And the lowest price, or a too good to be true deal, usually is.
Sadly, many of these sites steer consumers to the lowest price begeting the lowest service, from the least qualified in the business.
This is often a self fulling prophecy.
These same people write articles about bad people, bad service and... well you know how those car salesman are.
Do youself a favor, find a good dealer, a knowledgeable sales professional, and don't come in with the attitude that you have to beat up on him or he will rip you off.
"That guy" probably is a good, hard working, family man providing for his family by helping and serving you!
And guess what? He wants you to come back...refer some business..take good cre of you.
That's worth a few extra bucks.
CONNIE FARKAS
Said this on 4-28-2008 At 05:44 pm
I am dealing with a car problem right now, I can not go into it because the credit company already has sued us for the car. I have seen local news stories that scare me, it like they know my situation as well as I do. I can not afford a lawyer and the credit company was/and know I am on a limited disabled income and they still wouldn't let me give the car back no matter how hard I tried. I was going to park it at the local lot but they told me I would be responsable if stolen or damaged, they flat out told me "WE DON'T WANT THE CAR BACK!" everytime it was brought up. now their sueing me and it was a phishing expedition from the start; They had 4 guys working us at the sam time and I was doing my best to stay on top of things but after 6 hours we were exhausted then they had us sign papers and our trade-in was gone by then. They even took a $99.00 ring and put it down as it cost a $1,000.00 they said it was okay it was helping us. I better stop their, I dont want to damage my case.
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