Overview
This discussion highlights key red flags to watch for when buying a car at a dealership, emphasizing tactics that can signal unethical or unfair practices. Practical advice is given to help buyers avoid common traps and make informed decisions.
Bait-and-Switch Pricing Tactics
- Dealers may not honor the advertised price, citing reasons like typos, expired incentives, or that the vehicle was just sold.
- Additional hidden costs may be introduced, such as mandatory add-ons not included in the advertised price.
- Some prices may reflect stacked rebates that are nearly impossible for most buyers to qualify for.
Unreasonable Pre-Test Drive Requirements
- Dealers may request a good faith deposit before allowing a test drive, which is unnecessary for mainstream vehicles.
- Asking for a completed credit application before a test drive is another warning sign, except for rare, high-value vehicles.
Pressure Tactics to Keep You at the Dealership
- Dealers may take the keys to your trade-in and make it difficult for you to leave, sometimes delaying under the pretense of vehicle appraisal.
- Such stall tactics are designed to pressure customers into staying longer and making a purchase.
Extra Fees and Add-Ons
- Additional fees like reconditioning or certification charges are sometimes added after you express interest, rather than being included in the advertised price.
- Legitimate dealers should have such costs already factored into the listed price.
Restrictions on Pre-Purchase Inspections
- Dealers may refuse to allow a pre-purchase inspection by an independent mechanic, which is a significant red flag.
- Every used car purchase should permit an independent inspection to ensure transparency and vehicle quality.
Conditional Financing and Add-Ons
- Dealers may require that you finance through them to receive a discount, or make the price contingent on buying an extended warranty.
- Conditions like maintaining a loan for a minimum period or needing a trade-in for the best price are tactics to increase dealer control and profit.
Recommendations / Advice
- Always verify the out-the-door price before visiting or committing to a dealership.
- Avoid dealers who implement unnecessary deposits, restrict test drives, add surprise fees, refuse inspections, or make price or financing contingent on add-ons.
- Walk away if pressured or if any of these red flags appear during your visit.