Car Trade in Price Scams
There are several common car trade in price scams, tricks, and bargaining tactics when buying a new or used car from a dealer. Knowledge of these practices will give a car buyer an advantage one can at least be aware of what is happening in the process. Knowing how to avoid car scams is even more helpful because the result can be a far more attractive price one receives for a traded vehicle.
Negotiating Trade in Price
Right from the very beginning, the trade in price should be negotiated separately from the purchase price of the car one is interested in buying. Indicating real interest in buying a car will help in the negotiating process, but when asked about price, a buyer should persistently insist that the dealer value the trade in vehicle before details of the purchase are discussed. The two dealings should be treated as completely separate transactions to avoid car trade in price scams.
Purchase Price Up Front
Several customers may prefer to negotiate the purchase price first, relying on publically available resources that are very clear on trade in value. As many dealers have a preference to pay the wholesale price, claiming that they have no intention of taking the vehicle into their own inventory, if one’s car is easily salable or an “in-demand” make or model, insisting on a higher price is important. The dealer is not obliged to wholesale the vehicle for a low price after the sale is complete. It is not obligated for the buyer to sell at a disadvantageous price.
Car trade in price scams include so-called mistakes as to the model or features on the trade in car. Asking early in the process if the dealer will purchase your car regardless of what you ultimately decide may help avoid some of these dealer tricks but being watchful and sticking to your budget and car-buying plan is critical.