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Don't Get Tricked by the Car Dealer

Amazingly, no matter what car thelog on to It's Australia's largest free
customer wants, it is always 'hotclassifieds site. You will find auto
property', 'very sought after' and/orclassifieds, motorcycle classifieds, and
'hard to find'. Moreover, it isn't aAustralian cars for sale all over the
secret; we have all known it for years.country.
Nevertheless, some of us still continueYou might think that the car dealer
to be tricked into buying a motortrusts you implicitly with the new car
vehicle we really don't want to buy, andand by letting you take the car home
at a higher price than we expected. Soovernight or to work for a day, the
let's find out what some of the mostsales person is trying to get you to
favourite and sneaky tactics they get up'fall in love with the car'. Not very
to and put them in our diary so that weunderhanded, perhaps, but considering
can refer to them when next buying a newthe dealer will initiate this in some
car.cases by asking for a trade-in
Almost every new car dealership willassessment, you need to recognise that
drop the initial price they have listedit's definitely a trick. A trade in
on a car for sale. However, what youassessment should take no more than
must be wary of are the scams, pressureabout 10 minutes. A half hour at most.
tactics, twists, and turns that motorcarA dealer may tell you they have reached
salespeople have up their sleeves. It isthe 'limit' as to what he can do with
in the showroom, when you are ready tothe price, but he can give you a
finalise the deal, where you shall be'special deal' on cheap finance. He will
worn down by these machinations, if youtell you 'the normal rate is a%' and
don't have your wits about you. This isthen say, '...but you can have it for
when a great online site like comes inb%' (slightly less). Unless you are
really handy. You can register, log in,aware of current interest rates, you can
search thousands of cars and refine youreasily pay too high a rate. Therefore,
search by using the vehicle 'keywordif you go online and check any of the
search'.large finance companies like au or banks
Car dealers will never give you a directthey will be able to give you all the
or exact quote because if they do, theyinformation, before you are conned by a
know you will go to another dealer andcrafty salesperson. Then compare with
have them better the price. And to checkthe dealers price and your bank. You
on prices and search for motor vehicleswill find a good rate of interest if you
online is a great way to save a lot ofdo some initial research.
footwork. I recently found two sites,A small increase in the repayments
which had thousands of Australian carsquotes will equal a large increase in
for sale. At au, you will find new andthe total amount you will pay for your
used cars for sale as well as dealernew car. Dealers use this to great
specials.advantage in order to divert focus from
If you do leave the dealership and tellthe total price paid. The only way to
the dealer you will 'look around forfind your new car is online, in the
other prices', the dealer will mostcomfort of your own home. Classified
likely ask you to come back once theads are the best way to research, and at
'best price' has been obtained. Don't beOzFreeOnline.com, you will find all the
fooled by this because the dealer willinformation you need to buy your new
then either match the price, or try tocar. There are articles and car reviews
increase it slightly by taking advantageand thousands of car ads to search
of the fact that you have had enough ofthrough situated Australia-wide.
shopping and are now really eager to buyIf you are not vigilant, your dealer may
the car. Smart and very familiar, thisoffer you less than market value for
trick works very well for most dealers.your trade in. The idea here is to
It relies mainly on getting you, theconceal the profit from the customer by
customer to feel obliged to buy, becauselowering the allowance for the trade in.
you have put the dealer to 'so muchIf it succeeds, and it usually does, the
trouble'.dealer can offer you an unrealistically
A smart salesperson will urge you tolow price for the new car.
commit to buying the car you reallyAn extremely common trick is 'limited
want, even before you get the finaltime'. If the dealer does give a price,
price. This is irksome and exasperating(a most unusual and dicey thing for the
for customers, but reasonable from adealer to do) he will try to make you
dealer's point of view. Now your carbelieve that it is only valid right now,
dealer has two choices: To give you awhile you are standing in the showroom.
quote and watch you walk out the door,This is an obvious ploy to force you to
or entice you to negotiate. Perhaps youmake up your mind on the spot. The
may be lucky when negotiating with theamazing thing about this con is the
dealer; however, you may never knownumber of people that fall for it. What
whether you have paid too much. If youyou need to think about when buying a
feel uncomfortable about a car dealer,new or used car is that going online to
then go online at consumer.vic.gov.aufind the make, model and all the
where you can check that this trader ofinformation about the vehicle first is
motor cars in Victoria is licensed andthe smart way to buy a car. If you go
has Licensed Motor Car Traders (LMCT)online to au you can check out what is
number.for sale and also do some research on
Most auto classifieds online give athe particular vehicle you want to buy.
price, which you can work with, but aThere are various methods of stalling a
regular trick, which is frustrating andclient. You may ask why? The purpose of
time consuming for customers is this. Athe stalling trick is to exhaust you.
dealership will identify one or two carsWhile you are sitting in the office with
of a particular model. These will be thethe 'free cup of coffee in a styrene
'undesirable' cars. The problems aremug' trying to decide whether or not
common and may be simple. For instance,the salesperson has offered you a good
'the manufacture date is very old', 'thedeal, it reduces the time available for
car has been in the showroom for a veryto you to shop around for a better
long time', perhaps they are 'the leastprice. Remember these salespeople don't
popular colour' and of course 'with nohave anything else to do but convince
options'.you to buy this car here and now.
Next, the dealer will run a largeMoreover, they know exactly how to do
advertising campaign based on these twothis with the help of the other
cars, with the price ridiculously belowsalespeople and mechanics.
cost. When the advertisement runs, theSome common stalling tricks are: They
dealer waits for customers to floodmight misplace the keys to the trade in
through the doors. Of course, when theyor perhaps another client's car has
do arrive to get the best deal, they areblocked yours ('you'll have to wait for
usually told that the cars have beenthe return of the client'). Perhaps
sold and are now waiting to bethey will take excessive time to assess
'delivered' to the clients.the trade-in. There is always a valuer
Consequently, you will be invited toon site at a dealership, and a valuation
browse the showroom or customers aretakes no more than 10 to 15 minutes.
'switched' to another car.Don't put up with silly scams like this.
If you still insist on looking at theis a site that will assist you in
vehicle, if it is still on the floor,finding the motor car you want. This is
the salesperson just points out why thisa fascinating site, because they have
particular car is undesirable, and theninteresting articles, car reviews and
persuades the customer to look at aeven a forum where you can join in to
better car, of course you will expect totalk about cars with likeminded people.
pay more. To make sure you do not payNow let us look at a classic trick
too much, log in to a site where youdesigned to make the customer think the
just register, log in, and search thecar is really exceptional. I am sure you
thousands of vehicles availablehave heard this. 'My wife/husband drives
Australia wide. Not only can you searchone'. Yes, the car salesperson has
for a motor vehicle with a simplebought the same model for his own
keyword search, but also when you arespouse. If it happens that he or she
ready to sell a car you can use the freereally does drive this particular model,
classifieds to do so.then it is most probably because the
The most widespread trick currentlysalesperson gets it as part of his/her
being used is to make the customersalary package because they work for the
believe that the salesperson can get thecar dealership.
lowest price for the car, so that youA good sales person will search hard to
(the customer) will start negotiationsfind common interests with the customer
with the dealer almost immediately. Theso he or she can 'make friends'. The
specific methods vary, but here are somepurpose of this is to make you identify
common ways of doing it:with the sales person. This, in turn,
The salesperson will tell you. 'Youshould make you feel sympathetic to the
could probably get the car for less thansalesperson and leads to the customer
$36,250…', but will avoid giving afeeling bad if he/she lets down the
specific price. Instead, the salespersondealer by not buying from them. What you
will say, 'When you are ready to buy, wehave to remember is that you may never
can strike a deal, are you ready to buyset eyes on this person again. All you
now?'are doing is buying a car. Just as you,
The salesperson tells the customer: 'Ifbuy a pair of shoes. You don't need a
you're going to spend more than $36,250'new' friend.
on the car, you should come back and seeOffering 'extras' such as carpet mats,
me'. When the customer returns and askswindow tinting, car seat covers and
to buy the car for $36,250, theother items serves two purposes: It
salesperson will point out that he/shedraws a line that makes the customer
never promised to sell you the car forbelieve that the dollar amount is not
$36,250, but is ready to give you thefurther negotiable. If, for example, the
best price when you are ready to buy.bottom line on the car is $32,000, the
'Do you want me to get a good price fordealer may stop at $36,000 and start
you? …so are you ready to buy now?'.adding 'extras'. The extras may only add
We all know that buying a new or usedup to $500 by the time the dealer has
car can be a daunting process however;managed to convince you that
at au, you will find the latest carnegotiations are finished. It slows down
specials from reliable dealers.negotiations, and diverts focus from the
Your salesperson may give the price fordollar amount. Go online to au and
an older model car. Either the 'old' carsearch through their online listings.
is a previous model, or perhaps it hasFind the price of car you want without
been gathering dust because no one hasthe hassles.
wanted to buy it (usually for goodCaution. If you have been referred by a
reason) and the dealer wants to get ridfriend, and you tell the sales person
of it quickly to make room for newerthe 'good news', this instantly means
models. This is likely to happen if youthat the customer is more likely to
don't think carefully and specificallytrust the sales person. Trust is money.
ask for the price for a current modelThe more trust given, the more the
car that is not older than 3 months. Becustomer will pay for the car. Keep the
wise and search OzFreeOnline.com, whereinformation to yourself, or you will end
they have thousands of cars in theirup being scammed. is a site that will
cars classifieds pages. By simplyassist you in finding the motor car you
registering and submitting a keywordwant. I am fascinated by this site
search, you will find the car you wantbecause they have interesting articles,
in no time.car reviews and even a forum where you
The other ploy is when the salespersoncan join in to talk about cars with
takes your credit card along with anlikeminded people.
insufficiently low offer to 'the boss'You have probably heard the expression,
for approval, but then returns to say it'the Woody', akas Wood Duck; you may
was not accepted. This is intended tohave even used it. Don't become one.
drag the customer into moreThis is a person who walks in to the
negotiations. i.e. '…we only need toshowroom, puts total trust in the sales
increase it slightly and she's yours..."person, and sincerely believes the sales
Don't get caught by being given theperson is actually helping to get the
price for the car excluding the on-roadbest deal for them. It is a
costs. If you don't specifically ask forsalespersons' dream because he or she
on-road costs to be included, the salesknows the full retail price will be
person will most likely give you thepaid.
excluding on-road costs price. OfWe have all heard it at some time or
course, you have to be guarded becauseanother when we have been searching for
your contract may be drawn up on thisa new car, 'Subject to loan approval'.
proviso. Trouble is that when you areMany car loans will have this phrase in
ready to sign, the 'quoted' price of theit, and believe me; some dealerships
car, will then be understated by manywill try to exploit you out of more
thousands of dollars.money by using this phrase as the reason
If you are a bit slow and think your carwhy. This fraud is usually pulled on
is worth more than it really is, youconsumers that may have bad credit, so
just might get a clever salesperson thatif your credit rating is good, you
will give in, and agree to an excessiveshouldn't have to worry about being
price for your trade in. Now you mighttaken advantage of by the dealership.
be pleased by this, because you may beThe bad news is that for those people
thinking that you are 'putting one over'who are taken advantage of, it usually
the dealer. No so, generally the salesmeans upwards of $1,000 more in finance
person will look up on the computer orfees and an additional $50 a month added
in the Car Dealers Price Guide to findto your car payment. To avoid this scam,
out the going price for your trade infinance your new or used car through
and will start from there. In addition,your own bank or credit union.
believe me; you will pay for it in theThe most abused fraud is the 'credit
end. How you ask? Well when the dealerrating' scam. The car dealership tells
charges TOO much for your new car. Youyou that your credit score is lower than
can check on the internet for a price aswhat it actually is. This is in order to
well, so go to au, so you are armed withcharge you a higher finance rate on your
the real price, when you go to tradecar loan. It is pure greed and the best
your motor vehicle.way to deal with this is to bring a copy
From time to time, a ruthless salesof your credit rating from au with you
person will have a go at this. He/shewhen you go looking to buy a new car.
will contact you before your new car isThat way there is no confusion about
delivered. When the niceties are overyour credit rating. Unfortunately, no
you will be told that there is an issueone is protected from this scam, because
with the trade in. You will be asked tothe dealership doesn't care if you have
bring the car into the workshop forgood or bad credit when they try to con
further inspection. When your vehicleyou.
has been in the garage, for 60 minutes,Another favourite trick is the forced
(having nothing done to it), the'warranty' scam where the auto
salesperson will tell you that thedealership will insist that in order to
mechanic claims to have found it isqualify for the car loan you will need
really only worth $500 less than whatto purchase a two or three year
they have offered for it. Watch for thiswarranty. Don't fall for this; you do
old ruse, because if you fall for it,not need the warranty. While you are
the sales person gets another $500 intearing your hair out looking for your
his pocket. To make sure this does notdream car I suggest that you register
happen to you go to and check out thewith and browse through the thousands of
great car deals in their Carads they have online in their free car
classifieds. You will find thousands ofclassifieds. You will find private
cars to choose from and be equipped withlistings, dealers' listings and used
all the information you need when youtheir keyword or quick search to find
arrive to look at the car you want toexactly what you are looking for.
buy.Can you remember that extra $fee that
Now if you don't want to be pursued by aseems to appear on your contract to
dealer just don't give a phone number.compensate the dealer for basically
Say 'it's a silent number', '...don'tdoing nothing? It is a good swindle that
have a mobile', 'can't leave a workI am sure you have seen or heard of
number', or at the test driveoften. It's called the 'dealer prep'
'accidentally' give the wrong phonescam. Yes, it is the extra $500 or more
number. If you don't, dealers willthat is added to the contract when the
sometimes pursue a potential customercar arrives in the dealership ready to
until they wear them down to buy.be driven off the car lot to, or by a
Even after continual phoning, and whenprospective buyer.
you end up buying from a differentTry to avoid paying this unreasonable
dealer, the sales person (who has missedfee if you can. Try to find out whether
out on the deal) will then give you thethe car dealership you are buying from
bad news. When you tell them you boughthas this fee. If they do, tell them you
elsewhere (at a very good price ofwill not be buying the car if you are
$34,550) they will say, 'Oh no, youforced to pay it. If they will not knock
shouldn't have paid any more thanoff the fee off then find a dealer that
$32,000 for it!' This is designed towill strike this ridiculous charge off
make you feel as bad as the salesperson,the contract. While I write these
who lost out too. It also highlightsarticles, I am always searching the web
just how spiteful some people can be.to find the best sites to visit to do
No matter when, where or whichextra research. I found au and found it
dealership you may stroll into, there isinteresting to browse. is a great site
always a reason to feel 'lucky',to search because of the news, reviews,
according to the keen sales person.thousands of new and used car listings,
Early in the month, they might say theythe ease by which you can browse the
missed their target last month and aresite and free registration.
desperate to make it up. During theThe dealer 'mark-up' fee is another
middle of the month, 'the boss has toldphoney fee that is made up just to pad
me to push out more cars or I'll neverthe car dealership's profit margin. Once
reach my target this month either'. Theagain, the dealer charges this
most common, is probably the most usedunnecessary fee for no reason other than
because most people fall for it. This isgreed. On your new motor vehicle, this
the end of the month trick.fee can be seen on the sticker marked on
The time of month may matter to somethe manufacturer's suggested retail
dealers sometimes, though; it neverprice (MSRP). These are just a few of
matters to a car broker. Beware of thisthe many scams and tricks that surface
because you may end up paying more thanfrom time to time particularly when you
you expected. Go online toare trying to buy a new car.
consumer.vic.gov.au and find out theWe know that these practices go on, just
information you need before rushingas we also know that there are many
headlong into the 'big end of financialtrustworthy car dealerships. What you
year deal'. This trick deserves seriousmust be aware of is that you must find
consideration. It is the most elaboratethe right dealer who can and will sell
trick of this type. Manufacturers knowyou a car, without trying to rip you off
that companies often buy around thisin the process. A good and trustworthy
time of year for accounting purposes.dealership can make the compensation
They therefore rarely offer any factorythey deserve for their efforts. All you
discounts, and they sometimes increasehave to do is find that dealership. When
their retail prices to take advantage.you do write in, we would all like to
To find a great deal on a car why notknow.



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