Many dealerships use clever tactics to make deals seem better than they are, leaving you with buyer’s remorse or an overinflated bill. Whether it’s your first car or your tenth, staying informed is the best way to protect your wallet and ensure a smooth buying experience. Let’s break down the tricks dealers use and how to avoid falling for them so you can drive off confident in your choice.
The “Today Only” Deal
Don’t fall for the salespeople who tell you a deal is good for “today only”. It makes you feel like you’re about to miss out on a once-in-a-lifetime opportunity. The truth? Most deals can be negotiated again the next day, or even later.
Don’t let them rush you – take time to evaluate your options. If a dealer refuses to honor the offer after you’ve slept on it, take your business elsewhere.
Bait-and-Switch Pricing
You see an advertisement for a car at an incredible price… but when you arrive at the dealership, it’s been “sold.” It’s a tactic used to lure you in, only to upsell a more expensive vehicle. They’ll try to make the pricier cars seem like the next best thing. Always call ahead to confirm availability. If the car is gone, don’t let them steer you into a deal you didn’t plan for.
Inflated Trade-In
Sometimes a dealer will offer you more than your car is worth as a trade-in. It can seem like a win, but it’s a way to distract you from the overall deal. They’ll be jacking up the price of the vehicle you’re buying, or tacking on hidden fees. When negotiating, focus on the total cost of the deal, not just the trade-in value. This will help you avoid overpaying in the long run.
Extended Warranty Pressure
Pushy dealers may press you to take an extended warranty, emphasizing worst-case scenarios like costly repairs. But these plans can be expensive and frequently come with limitations that make them less valuable than they seem. Before agreeing to an extended warranty, research its terms carefully and consider whether it’s truly worth the cost.
Low Monthly Payments Trick
Low monthly payments often come at the expense of a longer loan term. “Would you like to pay just $200 a month?” sounds tempting, but over time you’ll end up paying a lot more in interest. Insist on negotiating the vehicle’s overall price first.
Once you’ve agreed on that, work out a financing plan that suits your budget without costing a fortune.
The “Add-Ons” Game
Dealers love add-ons but they’re seldom in your own best interest. Extras like gap insurance, tire protection, or window etching can quickly inflate your total cost – and most aren’t necessary. Many services offered by the dealer can be purchased elsewhere for less. Saying no to extras won’t jeopardize your purchase, even if the salesperson implies otherwise.
Hidden Fees Surprise
Sometimes dealers add unnecessary or inflated charges to pad their profits. Look out for contracts that include vague fees like “documentation” or “dealer prep” that sound official but can be negotiable.
Always request a full breakdown of fees before agreeing to any deal. Knowledge is your best tool here—understanding standard fees in your area gives you the confidence to push back when something feels off.
Misleading Vehicle History Reports
While a vehicle history report is useful, never rely on it alone. Dealers might present a clean report to make a car seem flawless, but these reports aren’t always complete. They may miss accidents, repairs, or even title issues. A thorough inspection by a trusted mechanic can reveal hidden issues and help you avoid buying a car with problems.
Pre-Approval Avoidance
Don’t let a dealership push you into financial terms that don’t work for you. Some salespeople discourage buyers from getting pre-approved financing because they want to lock you into their dealership’s higher-interest loans.
Securing pre-approval from a bank or credit union gives you a clear idea of your budget and strengthens your negotiating power.
Good Cop, Bad Cop
You’ve seen it in the old movies, now check it out at the used car lot. The classic good cop, bad cop routine is still alive and well at some dealerships. One salesperson plays the friendly, helpful role, while another acts as the tough, inflexible manager. It’s a tactic to make you trust the deal offered by the “good cop”.
Showing the Monthly Payment First
Always make sure you talk about the car’s total cost before you discuss finance. When a salesperson starts by asking, “How much can you afford monthly?” they’re trying to hide the true price by extending the loan term or increasing the interest rate.
Insist on discussing the car’s price first. Once you agree on a fair price, you can work out financing terms that fit your budget.
Trade-In Promises
Always get the trade-in terms in writing, including the payoff timeline. That’s because some dealerships promise to pay off your trade-in immediately, but drag their feet, leaving you stuck with payments for a car you no longer own. This delay can hurt your credit if payments are missed. A reputable dealership won’t have a problem putting everything in writing.
Cosmetic Fixes
Make sure you test drive the car and request a thorough inspection by an independent mechanic. A sparkling clean car with polished paint and a detailed interior might distract you from its underlying problems. Don’t let that shiny exterior distract you from what really matters – how well the car runs and how reliable it will be.
“Payment Packing”
Don’t allow dealers to bundle extras into your monthly payment without clearly disclosing them. These could include unnecessary warranties, service contracts, or insurance products.
Always scrutinize every line item in your contract before signing. If something doesn’t make sense or feels excessive, ask questions.
Refusal to Provide a Written Offer
Always insist on a written offer before making any commitments. When a salesperson won’t give you a written offer or price quote, they’re likely trying to keep you from comparing deals at other dealerships. A reputable dealer will have no problem providing a clear, written quote for you to take home and review. If they resist, take that as a sign to walk away.