The New Car Sale Price Trick
Buying a new car is like buying anything else on the market, only a little more stressful. It is stressful because car dealers 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.
So you can be easily led to think that you are getting a good deal, when in fact you could be getting a bad deal. This is their job; they improve their craft all day from 9:00 to 5:00.
The new car sale price trick isn’t usually included in the list of the ‘official’ car dealer scams, but it’s worth discussing.
Surely you’ve 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. If a company marks up the price by 55%, and sells it for 50% off of that price, you are actually paying 5% more for the item than it originally costs.
This is a very common way for car dealerships to work.
They may offer a $4000 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 $4000 cash back offer will temporarily blind you long enough for you to sign the papers. So while a car 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 by their tricks especially the price trick and eventually not to become a car dealer fraud victim.