Buying a car is a major decision, and unfortunately, not all car dealers prioritize your best interests. Many employ clever car dealer sales tricks to increase their profits, often at your expense. Knowing these tactics can save you thousands of dollars and ensure you drive away with a good deal. While some tactics are obvious and easily spotted, others are deceptive, subtly nudging you toward a decision that benefits the dealership more than you.
The Art of Deception: Common Car Dealer Sales Tricks
From misleading language to strategic negotiations, dealerships have a range of techniques at their disposal. Here are some common yet often overlooked tactics employed at dealerships:
1. The “Bait and Switch” Tactic
This classic tactic, unfortunately, is still very much in use. You’re lured in by an incredibly low price for a specific vehicle advertised online or in newspapers. When you arrive at the car lot, ready to sign on the dotted line, you find out that the car is “no longer available”.
But don’t worry, the car salesman quickly points you to a comparable model—often pricier, with a higher markup, or loaded with “extras” you didn’t want—that conveniently is available. Suddenly, that “great deal” you thought you were getting disappears faster than a car on a test drive.
2. Lowballing Your Trade-In Value
Your current car holds value, and some dealers will try to undervalue it so they can offer you a “great deal” on your new purchase. They know many people are so focused on the price of the new car that they don’t pay as much attention to their trade-in.
Be prepared and arm yourself with knowledge; tools like Kelley Blue Book or a similar valuation service can help you determine a fair market price for your vehicle. If a dealer makes a ridiculously low offer, stand firm and negotiate based on your research. You might even consider selling your car privately to maximize its value. Selling your car yourself can feel daunting, but you can avoid common car dealer sales tricks and potentially make more money.
3. The Monthly Payment Shell Game
Never let the monthly payment dictate your purchase. This common sales tactic takes advantage of buyers fixated on monthly affordability. A dealer might ask, “What’s the maximum monthly payment you can afford?”
But once you tell them your limit, they might manipulate the auto loan terms—stretching the duration to five, six, or even seven years. This leads you into a longer, more expensive financing commitment that ultimately costs you much more in the long run while keeping your monthly payment at your stated limit. Determine your budget first and focus on the total price of the car, not just what seems manageable each month.
4. The Pressure Cooker
Buying a car can be exhausting, and some car salespeople exploit this by creating an atmosphere of urgency and pressure. This includes everything from rushed sales pitches and time-limited offers to claims that the deal won’t be available if you leave the lot.
Recognize these tactics for what they are: pressure tactics to cloud your judgment. You’re making a substantial financial decision—don’t allow yourself to be pushed into a deal before you’re ready. Take your time, compare offers, and if you feel overwhelmed, walk away. A calm and considered decision is usually the best one.
Beneath the Surface: Sneaky Car Dealer Fees
It’s not always about the sticker price. Once the price of the car has been decided, some dealers will attempt to tack on hidden or unnecessary fees, so keep an eye out for these:
1. “Mandatory” Add-Ons
These might come in the form of VIN etching, fabric protection, paint sealant, or other services already included in the car’s factory price or that you can find cheaper elsewhere. Be sure to thoroughly question the purpose and value of any additional treatments and services before agreeing to them.
This ensures that your hard-earned money doesn’t go to waste on things you could purchase at a fraction of the cost elsewhere. For instance, opting for a more affordable hybrid vehicle instead of a more expensive electric option is a prime example. Be sure to compare car loans as well to see if a lower interest rate makes more financial sense to buy a more expensive electric vehicle over the hybrid. This is just one area of personal finance that many people overlook that could end up saving them money.
2. Inflated Interest Rates
This deceptive tactic can significantly impact the overall cost of your car. Always shop around for financing before visiting a dealership. This can be achieved through banks and credit unions that typically offer competitive rates, so you’ll know if the dealership is trying to overcharge you.
You can use that knowledge as leverage to negotiate a better deal. Knowing what lenders offer for auto loan rates on average for your credit score can make or break a car deal, especially if you’re set on buying a specific car. Speaking of credit score, did you know that how you manage your credit cards can impact your credit score? It might be worth checking out how your spending habits on your credit card are affecting your score.
3. The “Extended Warranty” Hard Sell
Extended warranties often provide dubious value compared to their price, and this is something many car dealerships bank on. They prey on a sense of fear by emphasizing potential future repair costs that might cripple your finances and tempt you with “peace of mind”.
Extended warranties can often come with limited coverage and high deductibles, and in some cases, they’re bundled into your loan or monthly payment without your full awareness. While the idea of an extended warranty might sound appealing, remember that modern vehicles typically include dependable factory warranties. Take time to research, consider the vehicle’s reliability ratings, and make a thoughtful decision based on your personal financial situation—you may even find better ways to invest the money you save.
It’s time to rethink how and when you purchase a vehicle protection plan for unexpected repair needs.
With Owner Direct Network, you can buy the same protection plan directly from the extended warranty provider, putting the power to protect your vehicle firmly in your hands.
Conclusion
While car shopping should be an enjoyable experience, navigating car dealer sales tricks requires diligence and knowledge. Recognizing these tricks is just the first step—arming yourself with information, researching, comparing prices, understanding your financing options, and knowing when to walk away all contribute to a positive outcome on your car purchase journey. Avoiding these tricks can be as easy as utilizing online banks to secure your loan ahead of time, so you are going in with pre-approval for a certain amount. You will already know your loan rate before you even step foot in a dealership. Don’t forget that the finance manager at the dealership will likely try to give you a better rate, so it’s a win-win for you.
