Car Dealer Scams: Be an Educated Buyer
It is the buyer’s job to make sure they have done their research on a vehicle before entering the car dealership. The buyer should clearly know how much he/she has prepared to spend on his/her new car.
The first place you can get caught with car dealer scams is in negotiating the vehicle’s price. There are various websites that tell you the actual cost on a particular vehicle as well as the average selling prices for that vehicle in a particular area. Have this information with you and never negotiate only on sticker price.
There is also another secret incentive called “holdback” that many factories will pay a dealer when he sells a particular car. It is always a good idea to confront the salesman about this to keep them honest. While they may not release this holdback to the buyer, it will make them negotiate more fairly on the vehicle’s final price as they become aware of you being an educated buyer. Information on these holdback rebates is also available on the web.
To avoid falling victim to potential car dealer scams and high costs of financing through the dealership, explore all of your financing options. By reading a good car buying guide you can prepare yourself with good information. This will educate you on the car dealer tricks and you’ll walk away paying a lot less and feel good knowing that you made a much better financial decision.