Car ScamsBuying a new car is just like buying anything else on the market, only more stressful; Stressful because of the product being such a 'high-ticket' item; there is much to be gained and lost in the form of money. But in addition, salesmen are trained not to take "no" for an answer, and many word games and phrases come into play to help them to get you to close the deal. First off, let's make something clear: Most car salesmen are honest, hard-working folks, period. ...But sometimes, psychological tricks and salesmanship strategies are used on a car shopper by certain dealerships. This is done, of course, in order to get more money for a given car or truck. But aside from (sometimes) being in the 'gray area' of honesty, they are mostly perfectly legal. But by certain salesmen employing these techniques, they have given nearly all car salesmen the sleazy reputations of, well, "car salesmen," despite the fact that the large majority are honest Americans who want to do what's right. But if you feel you've been "taken for a ride" by a car dealership, call the FTC (Federal Trade Commission). They are the part of the Federal government that is the watchdog for unfair business practices. You can file a complaint on the Federal Trade Commission website is or by phone at 1-800-FTC-Help (1-800-382-4357). I've never heard of a dealership getting reported, but I'm sure some folks over the years would have liked to!
Avoid The Stress Of Buying A New Car By Coming Prepared
Think about it - when any sales people use carefully rehearsed and practiced strategies, you can be easily led to think that you are getting a good deal, when in reality you could be getting a crummy deal. This is their job; they perfect their craft all day from 9:00 to 5:00.
There are tried 'n true car salesman methods that are in the "gray area," in my opinion, that you have the right to know about.
The "New Car Sale Price Trick"
The "New Car Sale Price Trick" is not one of the 'official' car dealer scams, because it's simply the same technique nearly ALL retailers use:
You've surely noticed how retail stores will offer a 50% off deal on a piece of merchandise, but in truth the price of the item has been increased in the first place. This same marketing strategy applies to selling cars (although without the 50% off deal, of course.) If a retail store marks up the price of a dress by 55%, and sells it for 50% off of that price, you are actually paying 5% more for the item than it originally cost. Seems like you are getting a great deal, when in reality you are not.
This is a very common way for car dealerships to work.
They may offer a $3000 cash back deal on your trade-in while the other fees and interest rates will be higher than normal. But they're hoping that this $3000 cash back offer will temporarily blind you long enough for you to sign the papers. So while a dealership may make the numbers sound great, they will try to get you with the other fees. Let them "try" whatever they want; your job is to not be fooled... Because you can come armed; having done your homework with a printout of the actual dealer cost for the vehicle and, perhaps, your credit report. Read on, because you'll want more than just the "dealer cost."
Dealerships have many ways to fool a new car buyer, but let’s look at the top 10 scams that dealerships will pull on you before we cover the others. As a matter of fact, some of these "other" scams (that we'll cover soon) are nearly as commonplace as these next 10...
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Buying A New Car