Eight Tricks Used by New-Car Dealers - Be Aware

Car dealers, in their enthusiasm to get your business, often resort to "tricks" that can be misleading, deceptive, or even borderline fraudulent. Here are some prime examples:

1. "We'll pay off your old car loan, no matter how much you owe"

This is true, as far as it goes. However, if you owe more on your old loan than your car is actually worth, the dealer will simply roll the loan balance, minus the credit he gives you for your old car, into your new loan or lease. In effect, you will still be paying off the old loan along with your new loan. The dealer will typically not explain this extra detail.

2. "Our finance company requires customers to buy an extended warranty, credit insurance, and rust protection"

Nonsense. There are no such requirements. This is only a ploy to sell you items that add extra profit to the deal. When these items are offered, you should respectfully decline them.

3. "The invoice prices you found on the Internet are not correct and outdated"

There may be a little truth in this statement. The invoice prices found on Internet automotive pricing sites are generally correct. However, dealers sometimes have additional charges for advertising by the manufacturer or distributor. These charges will appear on his invoice, but not on the Internet. This charge will be a few hundred dollars at most, and many dealers will pass it along to customers.

4. "We'll sell you a car, even if you have bad credit, slow credit, or no credit"

That may be true