Are you planning on buying a car? In this article, we show you some car dealer tricks to avoid. Whether you’re buying a used car from auto liquidators Houston or a new one, try to avoid falling for these car dealer negotiation tricks.
Living in a city in the United States can be difficult without a car. Aside from the crowded public transport and long lines, you may also need to deal with traffic. Over 93.3% of households in the US report having at least one vehicle. Whether it’s your first car or your tenth, buying a car can be an exciting experience.
Going in Clueless
It’s a general rule of thumb to do some research before making a large investment or purchase from auto liquidators Houston. Your salesperson could take advantage of your lack of information. Many salespersons love clueless shoppers because it brings them easier deals.
It can be difficult to identify or negotiate a fair price when you don’t know how much it should be. Before you go to a car dealership, conduct some research. You can go to Kelley Blue Book or Edmunds.com.
Use these sites to find the average price of your desired car or truck. You may also find these apps and install them on your smartphone. This helps you know the actual price you need to pay for a car.
You may find that your chosen vehicle is hundreds or thousands less than the retail price. Researching before buying can help you negotiate a lower price.
Imposing Finance Charge Markups
When you’ve finally picked out a car you like, your finance manager will go to their system to look for the best deal. However, your dealership may not tell you the cheapest loan, even if you qualified for it. They can add to the interest rate without any legal complications.
This isn’t illegal under any pretenses. However, the U.S Justice Department and the CFPD began investigating some dealerships. Some minorities and women report added markup to their loans.
Lying About Payoff Process
If this isn’t your first time buying a car, you may fall for this trick. Making deceptive payoff promises is one of the most common car dealer tricks. A salesperson may promise to pay off your loan for a previous car to close a deal.
Most car dealerships will make up for this by charging you more for your new vehicle. Some may offer less trade-in but will press a finance charge markup. Sure, your car dealer will pay off your new load.
However, they will only add more to your new loan. Make sure you take the time to read your paperwork.
Your finance manager may have snuck in some payoff to your loan balance. Signing your papers without reading first commits you to pay for your new loan for another year.
Giving Your Credit Card
Your car dealer may ask you to give them your credit card upfront. They can take this to their office and may not return with it immediately.
Some will hold a buyer’s credit card throughout the entire negotiation. To get your credit card back, you may feel that you need to secure a deal.
Your car dealer aims to make you feel trapped. This forces you to negotiate with them, and taking away your credit card adds to the pressure. Some buyers feel like they already secured a deal.
To avoid this, remember that you should never give anyone your credit card. You’re not required to give anyone your credit card, not even your car dealer.
It is illegal for a clerk to charge anything without your permission or refuse to return it. If this happens to you, try to relax. Don’t fall for this psychological trick.
Not Trying to Negotiate
While browsing through a car inventory, you may feel intimidated by the price tags and clerks. Some buyers feel too shy to ask for negotiation. However, you need to know how to negotiate when you go to a car dealership.
Almost anything about a vehicle is negotiable. Car dealers may start their pitch by saying that they don’t often accept negotiations. If this happens to you, you’re better off looking elsewhere.
Remember that you may negotiate anything about a car. You can ask about changing the paint color and interior fabric.
Be willing to negotiate and be firm about your needs. Remember that you can always say no and walk away.
Agreeing to a Low Trade-in Value
Many dealers find more success in selling used cars. Offering less for a buyer’s trade-in car than its real worth is one of two methods. Many spend time thinking about negotiations and don’t remember the trade-in until later.
Some may ask for a higher price until they feel satisfied. Do your research before approaching a dealer.
Avoid These 7 Common Car Dealer Tricks
Now you know some common car dealer tricks to avoid. Remember to avoid dealers who won’t negotiate or who aren’t honest about the payoff process. Stay clear of shady tactics like asking immediately for your credit card, and never go in blindly!
Avoid These 6 Common Car Dealer Tricks | Liquidator Auto Sales – Houston, TX