Dealers often add extra vehicle options, like premium sound systems, upgraded tires, or custom paint jobs. These add-ons can increase the price of a car. While some buyers appreciate these enhancements, they usually come with a high markup, ensuring higher profits for the dealer. Always check if these options are necessary, and consider negotiating or opting out to save money.

Using Small Print To Cover Up Important Details 

While eye-catching offers might lure you in, you should confirm the details before committing. Most car ads often use disclaimers and limitations hidden in small print. They hope you only read certain parts after you commit and bolster their chances of success with this tactic. So, take your time signing documents at a car dealership and hop into your new ride.

See Dealer for More Details

Phrases like “see dealer for details” can be red flags. Free lifetime oil changes, for example, might sound enticing, but the “details” could involve strict service intervals or other limitations that make it difficult to redeem the offer. Also, deceptive advertisements might show a car at a low price, but when you visit the showroom, the price has mysteriously increased.

Dealer Added Options

Dealers often add extra vehicle options, like premium sound systems, upgraded tires, or custom paint jobs. These add-ons can increase the price of a car. While some buyers appreciate these enhancements, they usually come with a high markup, ensuring higher profits for the dealer. Always check if these options are necessary, and consider negotiating or opting out to save money.

Collapsing Options Into Monthly Payments

As a prospective buyer, you should be aware of the common trick where dealers may present optional features in terms of monthly payments. This offer can make expensive add-ons look more affordable. For instance, a $1,700 spoiler might seem excessive, but a $28 monthly payment might sound tempting. Focus on the total cost of the vehicle, including options, to avoid overspending.

Negotiating Based on Monthly Payments

Dealers often ask for your monthly budget upfront. Please don’t fall for it. If you say $400 monthly, they’ll stretch the loan to fit, making you pay more interest over six or seven years. Instead, calculate your monthly budget, multiply by 60 (five years), and shop within that range to avoid extra costs.

Persistently Asking “How Will You Be Paying?”

Always remember that when a dealer keeps trying to know your payment plan (cash or financed), they most likely want to adjust the car price. Revealing your plans upfront can give shady dealers leverage to inflate the car price. Keep financing discussions separate by negotiating the car price as per your terms before discussing payment separately.

Pitching Leasing as the Best Deal

Since dealers often have more flexibility in negotiating the terms of a lease than a sale, they have a strong point that allows them to make higher profits from deals. Also, selling the idea of monthly lease payments is better, so clients pay more on various add-ons such as extended warranties, maintenance plans, and gap insurance, including the car’s base price. Whatever you do, remember that dealers make more money off leases.

Talking Clients into Making Down Payments on a Lease

Car dealerships make more money by asking for a down payment on a lease. Although this request may look harmless, it makes buying a car expensive for you. It decreases their financial risk and gives them a fatter monthly paycheck – from your wallet. Rather than paying a substantial amount, ask the dealership to roll it into monthly payments to protect yourself from loss.

The Sneaky “Four Square” Trick

This famed “four-square” tactic is popular among car dealerships. Shady dealers would divide a piece of paper into four squares, claiming one is for the vehicle price, another for the trade-in value, a third for the down payment, and the last for monthly payments. Then, they move numbers around, trying to create the illusion of a fantastic deal and overcharge unsuspecting customers. 

Pricing the Trade-In With the Purchase

Dealers may offer a lower price range for your trade-in when you bundle it with a new purchase so they can make a more considerable profit margin on the trade-in vehicle. This combination makes the pricing structure more complex, making it harder for customers to understand the breakdown of costs and potentially overpay. You’ll be better off separating these two negotiations.

Intentionally Low-Balling Trade-In Value

Usually, the anticipation of buying a new car makes many buyers focus more on negotiating new car prices and overlook their trade-ins. This slip allows dealers to start with low offers, making more from selling used cars by offering much less for trade-ins than they’re worth. You can use a Kelley Blue Book calculator or your preferred tool to check your car’s trade-in value before entering a dealership.

Tricky Spot Delivery

With spot delivery, the dealership starts processing a loan application as they allow prospective clients to take a ride in the car. The buyer might be more likely to agree to unfavorable terms than wait for approval because they are excited about their new ride. Although reputable brands extend this as an honest courtesy, some dealerships use pressure tactics to convince you. 

Trying to Convince Clients of GAP Insurance 

Before setting foot in a dealership, you should know there are more cost-effective options than dealership-offered GAP insurance. Guaranteed Asset Protection bridges the financial gap between your car’s latest value and your loan balance if your vehicle is totaled. While GAP can be valuable coverage, purchasing it directly from your auto insurance provider rather than the dealership is often cheaper.

Sealants and Other Surface Protections

Nowadays, carmakers formulate modern car paint to endure typical wear and tear. While dealerships may offer additional paint protection, rustproofing, or fabric treatments, these are often unnecessary expenses. You’ll need to investigate whether your car’s make and model need these services and explore having them applied by a reputable detailer later if desired. 

The “Yo-Yo” Lie

As per the Federal Trade Commission (FTC), this scam unfolds like this: The buyer finalizes the purchase, signs paperwork, and drives off with their new car. Later, the dealer contacts them, claiming the financing fell through, and pressures them to sign a new contract with a higher interest rate or risk losing their down payment and the vehicle altogether. If you suspect a yo-yo scam has ripped you off, immediately report it to the FTC.