Car shopping should be exciting, but dealerships often turn it into a stressful ordeal with their deceptive tactics. A recent study found that 37% of car buyers feel they’ve been taken advantage of at dealerships. Don’t become another statistic. Here are the nine most common tricks dealers use – and exactly how to avoid them.
They manipulate your credit score information
One of the most deceptive practices dealers employ is the “credit cozen” trick. They’ll often claim your credit score is lower than it actually is to justify charging you a higher interest rate. Some dealers even show customers fabricated credit reports.
Before visiting any dealership, obtain your official credit report and score. Know exactly where you stand. Many credit card companies now offer free credit monitoring – use it. If a dealer claims your score is different, show them your documentation.
The monthly payment manipulation trap
Dealers love focusing on monthly payments rather than the total price. They’ll stretch out loan terms to 72 or even 84 months to make payments seem affordable. What they don’t emphasize is how much extra you’ll pay in interest over those extended terms.
Always negotiate based on the total price, not monthly payments. Calculate the full cost including interest before agreeing to any deal. A $300 monthly payment might sound great, but not when it means paying $45,000 for a $30,000 car.
Hidden fees and unnecessary add-ons
Watch out for mysterious charges like “dealer prep fees” or “administrative costs.” These are often pure profit for the dealership. Dealers also push expensive add-ons like extended warranties, paint protection, and gap insurance at inflated prices.
Request an itemized list of all fees and charges. Question anything that seems unnecessary or inflated. Remember that many add-ons can be purchased elsewhere for significantly less. Gap insurance, for example, is usually cheaper through your regular insurance provider.
The bait and switch game
Dealers often advertise an incredible deal on a specific vehicle to get you in the door. When you arrive, that car is mysteriously “just sold” or has “features not mentioned in the ad” that raise the price significantly. This classic bait-and-switch tactic is still commonly used.
Before visiting, call to confirm the exact vehicle’s availability. Get the VIN number and details in writing. If the advertised car isn’t available, don’t let them pressure you into a more expensive alternative.
The rushed signature pressure
Some dealers use high-pressure tactics to rush you through paperwork. They might claim another buyer is interested or that the deal is only good today. This rushing often leads to missed details and unwanted additions to the contract.
Take your time reviewing every document. Never sign anything you haven’t read completely. If they pressure you, walk away. A legitimate deal will still be available tomorrow.
The trade-in lowball technique
Many dealers significantly undervalue trade-ins, hoping customers won’t know their car’s true worth. They might point out minor flaws or claim low market demand to justify their low offer.
Research your car’s value through multiple sources before trading it in. Consider selling it privately if the dealer’s offer is too low. Remember, you can negotiate trade-in value separately from the new car purchase.
The yo-yo financing scam
In this deceptive practice, you leave with the car thinking financing is approved. Days later, the dealer calls claiming there was a “problem” with financing. They insist you must return to sign a new contract with a higher interest rate.
Never take possession of a car without confirmed financing. Get all financing terms in writing before driving off the lot. If a dealer tries this trick, contact your state’s consumer protection office.
The four-square confusion method
Some dealers use a worksheet divided into four squares showing trade-in value, down payment, monthly payment, and new car price. They’ll shuffle numbers between squares to confuse you about the total cost.
Ignore their worksheet. Bring your own calculator and focus on one number at a time. Negotiate the new car price first, then discuss trade-in value, and finally financing terms.
The false urgency tactic
Dealers often create artificial deadlines or claim limited availability to pressure quick decisions. They might say a special price ends today or that another customer is coming to look at the same car.
Remember that cars are rarely truly scarce. Even if you miss one opportunity, others will come along. Take the time you need to make an informed decision.
Car buying doesn’t have to be an ordeal. By recognizing these common tricks and staying prepared, you can navigate the process confidently. Remember: knowledge is your best defense against deceptive sales tactics. Take your time, do your research, and don’t be afraid to walk away if something feels wrong.
