Unveiling Car Dealer Scams
It is a good idea to never pay more than $500 over what a new domestic car may cost a dealer and not over $1500 for an import. Avoid car dealer scams, negotiate up from the dead cost, which is what the dealer pays the car manufacturer after factoring in any rebates and incentives the dealer may get from the manufacturer. If you want to know the dead cost, you will have to determine the dealer invoice, price incentives, and holdbacks. These are the dealers’ manufacturer rebates for selling cars.
Do not ever pay for any add-on fees and options. Make sure you at least try and reduce the cost of these items and services. One of these fees associated with car dealer scams is a dealer advertising fund fee which is what the dealer pays to participate in automotive groups for advertising. Also, look for the fee called the wholesale financial reserve. This is the fee the dealer pays the manufacturer each month until they sell off the car from the lot. Another fee is for window etching. This is when the car dealer etches the vehicle identification number (VIN) on the car’s windshield. This is a safety measure. However, you can get this done much cheaper somewhere else.
One More Thing to Know about Car Dealer Scams
Also, consider looking for a quota car which is the car a dealer needs to sell to make its quota for monthly sales. They do this in order to get a bonus offered by the manufacturer. In this case, a dealer may sell a quota car at a loss or for no profit! It is best to ask about a quote of the car. Do this at around the middle to end of the month when the dealer is concerned about sales quotas.