Used car dealerships have had a bad reputation since the beginning of time. You still hear the horror stories even today. Here are just a few stories that I found online this morning. "This poor guy was lied to and the dealer tried to steal his down payment!" Or this one, "When the used car dealership was done with this girl, she ended up owing 4 times what the car was worth!" And finally this one, "The car dealer committed fraud, and then turned around and got mad at the customer!"
Keep in mind that not all used car dealerships are bad. Many dealerships are working hard to earn your respect and business. However, that doesn't mean to walk in blind and believe everything they are telling you. Do your homework and research so you know what is going on.
Here are three tips that can help you avoid having your own used car dealership horror story.
1. You Think You're Getting A Great Price
You found your dream car and think you are getting a great price. But, things may not be what you think they are. If you are trading in your old car, this is the dealer's greatest potential for profit by giving you the lowest price on your trade-in. The reason for this is because most people have no idea what their trade-in is really worth. They get you so involved and loving your new car that you don't pay much attention to the value of your old car. It's in your best interest to always get the value of your trade-in before looking at a new or used car to replace it. Even though this is backwards from the way most people buy, this can be a real advantage to you and save you money.
2. The Old Bait-and-Switch Trick Is Still Alive And Well
This is one of the oldest sales tricks in the world. You get all excited about the make and model you saw advertised because it's exactly what you want. Then when you walk onto the car lot, with your heart set on your dream car, the salesman immediately starts telling you why that model simply isn't good enough for you. Before you know what happened you end up signing on for something better and bigger, and of course...it cost a whole lot more.
This up-sell, as it's called in the industry, can result for drivers signing up for leases so they can afford the additional monthly payments on an expensive car.
By knowing ahead of time what to look out for when you walk on the lot, can help keep more of your money in your pocket.
3. Our Lenders Are Really Tough Today
Some used car dealerships will try to blame the lender so they can pass the buck regarding sales tactics and pricing policies. Some dealers will tell you that they can't give you the price you want because the leasing company requires all deals to be based on the sticker price. That just isn't true because lenders can't control a car's sale price.
Another trick is to tell the customer that the lender requires an extended warranty on the car, forcing you into buying something you may not want or need. Don't be fooled. If you are told that you have to buy an extended warranty to qualify for a loan, check with the lender and see if that is true. It's always a good idea to ask lots of questions before signing any papers.
Be aware when you go to the used car dealerships so you don't get ripped off. Don't fall for the hard-sell on anything you really don't want or need.
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