How to Buy a Car and Get a Good Deal

Watch out for dealer tricks and manipulations when buying a new or used car.

If you know these tips, you are less likely to get ripped off and more likely to get a good deal on your vehicle. Here are some manipulations and down right lies that, sadly, are not uncommon in the world of car buying.

Dealer tricks to avoid.

"We'll pay off your loan no matter how much you owe!"

How many times have we heard ads like that? The clear implication is that if you trade in your car, they will pay off the loan for you and you'll owe nothing. Fat chance! How dumb do you think dealers are? What really happens is, sure, they pay off the loan, but then tack that amount onto the new loan for the new car. Now you're paying for the new car and the old car which you no longer have.

"Your financing fell through."

You sign the papers with a reasonable interest rate on the loan. But a week later, the dealer calls and says they could not secure the loan at the interest rate they quoted you. They get away with this because, even though you signed a contract, it said, "Subject to finance approval." They knew your credit score and knew all along you would not get a loan at the quoted rate.

The dealer "forgets" to pay off your loan.

You trade in your car with the understanding that the dealer will pay off the loan, But he doesn't. You have no recourse because you got nothing in writing. The bank has a contract with you, not the dealer. You owe the money. You can't sue the dealer because he signed nothing.

The dealer lies to you about your credit score.

Never finance a car without knowing your credit score. Disreputable dealers will tell you that your score is lower than it is and that you do not qualify for the special financing they advertised.

Extended warranty.

The dealer tells you that you are required by the bank to buy the extended warranty. This is a complete lie.

Dealer prep fees.

This fee is added to the cost of the car. It is, supposedly, to cover their cost of "preparing" the vehicle to be sold - washing and vacuuming it, removing the plastic from the seats, topping off the fluids. This takes, maybe, a couple of hours, tops. But they charge you $500 - $600 for it. The truth is that this is simply a way for them to recover some of the amount they discounted the car when they made the deal. Try to get it removed from the sale price.

The Patriot Act.

You will be told that t he Patriot Act required them to have you fill out a credit report, even though you have arranged your own financing. This is a lie. The Patriot Act requires banks to see your identification when you open an account. The dealer is not a bank and you are not opening an account. They want this information to see if they can get you to finance through them, anyway.

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