Car dealerships are in the business of selling cars, and they will often use various tactics to try to get the best deal for themselves. Here are some ways that unscrupulous car dealerships may try to rip you off:
- High-pressure sales tactics: Car salespeople are often trained to use high-pressure tactics to get you to make a decision quickly. They may try to create a sense of urgency or make you feel like you’re getting a great deal, even if you’re not. This might include pretending they have other people interested when they don’t, using dummy purchasers, or saying that this particular vehicle is scarce.
- Misleading advertising: Car dealerships may use advertising that is unintentionally or intentionally misleading or confusing (although, advertising standards prevent much of this). For example, they may advertise a low price without disclosing additional fees or charges that will be added to the final price of the car.
- Financing scams: Some car dealerships may try to steer you towards higher-interest financing options, even if you qualify for a better rate elsewhere. They may also try to add on unnecessary or overpriced extended warranties or other products. Consider whether you can access money for cheaper than a car loan which tends to be at a higher interest rate.
- Unwarranted repairs or maintenance: Some car dealerships may try to sell you unnecessary repairs or maintenance services. They may claim that the car needs work that it doesn’t actually need, or they may charge inflated prices for services that you could get elsewhere for less. They may effect temporary repairs that fail quickly – something that a warranty is useful for.
- False or misleading information: Some car dealerships may try to provide false or misleading information about the car you’re considering buying. They may claim that the car is in better condition than it actually is, or they may omit important information about the car’s history or previous owners. Requesting a free car history report before finalising any purchase can help you verify the details independently and spot any discrepancies the dealer may not be forthcoming about.
- Procuring a car that doesn’t match the one they promised: this can happen when you purchase a car from an auction overseas. The car you thought you were buying might not be the one that arrives – check all documentation carefully. Make sure you know about the grades given to the car by the auction house. Check that no damage has been done in transit.
Overall, it’s important to be cautious and do your research when dealing with car dealerships. Be prepared to negotiate and don’t be afraid to walk away if you don’t feel like you’re getting a fair deal. Now you just need to decide whether to buy a new or used car.
Darren is an expert on driving and transport, and is a member of the Institute of Advanced Motorists
