Are you aware of the deceitful tactics used by car dealerships? They’ll do almost anything to make a sale. As a consumer you should familiarize yourself with some of the sales angles. Here are some common lies you’ll encounter.
Sense of Urgency
It’s in a salesman’s best interest to sell as many vehicles as possible. This incentive based pay has resulted in an increasing amount of pressure and an overall rushed atmosphere for buyers. Dealerships reinforce this by using phrases like ‘limited time only’ and ‘time is running out’. Salesmen will also tell customers they have another buyer who is interested in the same vehicle. This is done in order to rush a sale.
Compare Outside Financing
Some dealerships will have you believe that you must use their in- house financing in order to purchase a vehicle from them. This is an inaccurate assumption. Eric Ravenscraft, a writer for lifehacker.com writes, “You can negotiate for a car loan before you even walk onto the lot. Based on your credit history, the bank can cut you a check for up to a certain amount. You can then walk on a lot and pay with that check, same as cash. You’ll then make payments to the bank directly.” Ravenscraft goes on to say, “By drawing up a loan agreement through your bank or credit union before you step onto the lot, you can know exactly what kind of interest rates you qualify for.”
Trade- In Angle
Dealerships will use a trade-in to entice customers. Often, they will offer an inflated price for your trade-in if you’re planning on purchasing another vehicle with them. They pad the number so that an offer from another dealership won’t be as high. When you inevitably come back to get the best price for your trade in, they’ll add additional charges into you financing to compensate for the extra money they offered you.
That Car is Gone
Salesmen also use a baiting tactic in order to draw in buyers. They advertise a vehicle for a really great price. When this amazing deal draws a crowd, they sadly inform the customer that ‘the car you came to see has just sold’. This technique is used to simply get people through the door. That’s half the battle, after all. Once the customers are there, it’s easy for a salesman to suggest a similarly priced vehicle or another model. If they can get customers to test drive a vehicle and fall in love with it, it’s much easier to talk them into a purchase. The kicker is that sometimes the car they initially advertised for a great price was never even at the dealership to begin with. If you want to avoid this song and dance, call ahead to the dealership and ask if the vehicle in question is still available.
Don’t let the car buying process overwhelm you. Make yourself aware of the common dealership pitfalls so you can avoid them completely.