Don't Get Tricked by the Car Dealer

Amazingly, no matter what car the customer wants,Australia's largest free classifieds site. You will find
it is always 'hot property', 'very sought after' and/orauto classifieds, motorcycle classifieds, and Australian
'hard to find'. Moreover, it isn't a secret; we have allcars for sale all over the country.
known it for years. Nevertheless, some of us stillYou might think that the car dealer trusts you
continue to be tricked into buying a motor vehicle weimplicitly with the new car and by letting you take
really don't want to buy, and at a higher price thanthe car home overnight or to work for a day, the
we expected. So let's find out what some of thesales person is trying to get you to 'fall in love with
most favourite and sneaky tactics they get up tothe car'. Not very underhanded, perhaps, but
and put them in our diary so that we can refer toconsidering the dealer will initiate this in some cases
them when next buying a new car.by asking for a trade-in assessment, you need to
Almost every new car dealership will drop the initialrecognise that it's definitely a trick. A trade in
price they have listed on a car for sale. However,assessment should take no more than about 10
what you must be wary of are the scams, pressureminutes. A half hour at most.
tactics, twists, and turns that motorcar salespeopleA dealer may tell you they have reached the 'limit' as
have up their sleeves. It is in the showroom, whento what he can do with the price, but he can give
you are ready to finalise the deal, where you shall beyou a 'special deal' on cheap finance. He will tell you
worn down by these machinations, if you don't have'the normal rate is a%' and then say, '...but you can
your wits about you. This is when a great online sitehave it for b%' (slightly less). Unless you are aware
like comes in really handy. You can register, log in,of current interest rates, you can easily pay too high
search thousands of cars and refine your search bya rate. Therefore, if you go online and check any of
using the vehicle 'keyword search'.the large finance companies like au or banks they will
Car dealers will never give you a direct or exactbe able to give you all the information, before you
quote because if they do, they know you will go toare conned by a crafty salesperson. Then compare
another dealer and have them better the price. Andwith the dealers price and your bank. You will find a
to check on prices and search for motor vehiclesgood rate of interest if you do some initial research.
online is a great way to save a lot of footwork. IA small increase in the repayments quotes will equal a
recently found two sites, which had thousands oflarge increase in the total amount you will pay for
Australian cars for sale. At au, you will find new andyour new car. Dealers use this to great advantage in
used cars for sale as well as dealer specials.order to divert focus from the total price paid. The
If you do leave the dealership and tell the dealer youonly way to find your new car is online, in the
will 'look around for other prices', the dealer will mostcomfort of your own home. Classified ads are the
likely ask you to come back once the 'best price' hasbest way to research, and at OzFreeOnline.com, you
been obtained. Don't be fooled by this because thewill find all the information you need to buy your new
dealer will then either match the price, or try tocar. There are articles and car reviews and thousands
increase it slightly by taking advantage of the factof car ads to search through situated Australia-wide.
that you have had enough of shopping and are nowIf you are not vigilant, your dealer may offer you
really eager to buy the car. Smart and very familiar,less than market value for your trade in. The idea
this trick works very well for most dealers. It relieshere is to conceal the profit from the customer by
mainly on getting you, the customer to feel obligedlowering the allowance for the trade in. If it
to buy, because you have put the dealer to 'so muchsucceeds, and it usually does, the dealer can offer
trouble'.you an unrealistically low price for the new car.
A smart salesperson will urge you to commit toAn extremely common trick is 'limited time'. If the
buying the car you really want, even before you getdealer does give a price, (a most unusual and dicey
the final price. This is irksome and exasperating forthing for the dealer to do) he will try to make you
customers, but reasonable from a dealer's point ofbelieve that it is only valid right now, while you are
view. Now your car dealer has two choices: To givestanding in the showroom. This is an obvious ploy to
you a quote and watch you walk out the door, orforce you to make up your mind on the spot. The
entice you to negotiate. Perhaps you may be luckyamazing thing about this con is the number of people
when negotiating with the dealer; however, you maythat fall for it. What you need to think about when
never know whether you have paid too much. If youbuying a new or used car is that going online to find
feel uncomfortable about a car dealer, then go onlinethe make, model and all the information about the
at consumer.vic.gov.au where you can check that thisvehicle first is the smart way to buy a car. If you go
trader of motor cars in Victoria is licensed and hasonline to au you can check out what is for sale and
Licensed Motor Car Traders (LMCT) number.also do some research on the particular vehicle you
Most auto classifieds online give a price, which youwant to buy.
can work with, but a regular trick, which is frustratingThere are various methods of stalling a client. You
and time consuming for customers is this. Amay ask why? The purpose of the stalling trick is to
dealership will identify one or two cars of a particularexhaust you. While you are sitting in the office with
model. These will be the 'undesirable' cars. Thethe 'free cup of coffee in a styrene mug' trying to
problems are common and may be simple. Fordecide whether or not the salesperson has offered
instance, 'the manufacture date is very old', 'the caryou a good deal, it reduces the time available for to
has been in the showroom for a very long time',you to shop around for a better price. Remember
perhaps they are 'the least popular colour' and ofthese salespeople don't have anything else to do but
course 'with no options'.convince you to buy this car here and now.
Next, the dealer will run a large advertising campaignMoreover, they know exactly how to do this with
based on these two cars, with the price ridiculouslythe help of the other salespeople and mechanics.
below cost. When the advertisement runs, the dealerSome common stalling tricks are: They might misplace
waits for customers to flood through the doors. Ofthe keys to the trade in or perhaps another client's
course, when they do arrive to get the best deal,car has blocked yours ('you'll have to wait for the
they are usually told that the cars have been soldreturn of the client'). Perhaps they will take excessive
and are now waiting to be 'delivered' to the clients.time to assess the trade-in. There is always a valuer
Consequently, you will be invited to browse theon site at a dealership, and a valuation takes no more
showroom or customers are 'switched' to anotherthan 10 to 15 minutes. Don't put up with silly scams
car.like this. is a site that will assist you in finding the
If you still insist on looking at the vehicle, if it is still onmotor car you want. This is a fascinating site,
the floor, the salesperson just points out why thisbecause they have interesting articles, car reviews
particular car is undesirable, and then persuades theand even a forum where you can join in to talk
customer to look at a better car, of course you willabout cars with likeminded people.
expect to pay more. To make sure you do not payNow let us look at a classic trick designed to make
too much, log in to a site where you just register, logthe customer think the car is really exceptional. I am
in, and search the thousands of vehicles availablesure you have heard this. 'My wife/husband drives
Australia wide. Not only can you search for a motorone'. Yes, the car salesperson has bought the same
vehicle with a simple keyword search, but also whenmodel for his own spouse. If it happens that he or
you are ready to sell a car you can use the freeshe really does drive this particular model, then it is
classifieds to do so.most probably because the salesperson gets it as
The most widespread trick currently being used is topart of his/her salary package because they work
make the customer believe that the salesperson canfor the car dealership.
get the lowest price for the car, so that you (theA good sales person will search hard to find common
customer) will start negotiations with the dealerinterests with the customer so he or she can 'make
almost immediately. The specific methods vary, butfriends'. The purpose of this is to make you identify
here are some common ways of doing it:with the sales person. This, in turn, should make you
The salesperson will tell you. 'You could probably getfeel sympathetic to the salesperson and leads to the
the car for less than $36,250…', but will avoidcustomer feeling bad if he/she lets down the dealer
giving a specific price. Instead, the salesperson willby not buying from them. What you have to
say, 'When you are ready to buy, we can strike aremember is that you may never set eyes on this
deal, are you ready to buy now?'person again. All you are doing is buying a car. Just as
The salesperson tells the customer: 'If you're going toyou, buy a pair of shoes. You don't need a 'new'
spend more than $36,250 on the car, you shouldfriend.
come back and see me'. When the customer returnsOffering 'extras' such as carpet mats, window tinting,
and asks to buy the car for $36,250, the salespersoncar seat covers and other items serves two
will point out that he/she never promised to sell youpurposes: It draws a line that makes the customer
the car for $36,250, but is ready to give you thebelieve that the dollar amount is not further
best price when you are ready to buy. 'Do you wantnegotiable. If, for example, the bottom line on the
me to get a good price for you? …so are youcar is $32,000, the dealer may stop at $36,000 and
ready to buy now?'. We all know that buying a newstart adding 'extras'. The extras may only add up to
or used car can be a daunting process however; at$500 by the time the dealer has managed to
au, you will find the latest car specials from reliableconvince you that negotiations are finished. It slows
dealers.down negotiations, and diverts focus from the dollar
Your salesperson may give the price for an olderamount. Go online to au and search through their
model car. Either the 'old' car is a previous model, oronline listings. Find the price of car you want without
perhaps it has been gathering dust because no onethe hassles.
has wanted to buy it (usually for good reason) andCaution. If you have been referred by a friend, and
the dealer wants to get rid of it quickly to makeyou tell the sales person the 'good news', this
room for newer models. This is likely to happen ifinstantly means that the customer is more likely to
you don't think carefully and specifically ask for thetrust the sales person. Trust is money. The more
price for a current model car that is not older than 3trust given, the more the customer will pay for the
months. Be wise and search OzFreeOnline.com, wherecar. Keep the information to yourself, or you will end
they have thousands of cars in their cars classifiedsup being scammed. is a site that will assist you in
pages. By simply registering and submitting afinding the motor car you want. I am fascinated by
keyword search, you will find the car you want in nothis site because they have interesting articles, car
time.reviews and even a forum where you can join in to
The other ploy is when the salesperson takes yourtalk about cars with likeminded people.
credit card along with an insufficiently low offer toYou have probably heard the expression, 'the
'the boss' for approval, but then returns to say itWoody', akas Wood Duck; you may have even used
was not accepted. This is intended to drag theit. Don't become one. This is a person who walks in
customer into more negotiations. i.e. '…we onlyto the showroom, puts total trust in the sales
need to increase it slightly and she's yours..."person, and sincerely believes the sales person is
Don't get caught by being given the price for the caractually helping to get the best deal for them. It is a
excluding the on-road costs. If you don't specificallysalespersons' dream because he or she knows the
ask for on-road costs to be included, the salesfull retail price will be paid.
person will most likely give you the excluding on-roadWe have all heard it at some time or another when
costs price. Of course, you have to be guardedwe have been searching for a new car, 'Subject to
because your contract may be drawn up on thisloan approval'. Many car loans will have this phrase in
proviso. Trouble is that when you are ready to sign,it, and believe me; some dealerships will try to exploit
the 'quoted' price of the car, will then be understatedyou out of more money by using this phrase as the
by many thousands of dollars.reason why. This fraud is usually pulled on consumers
If you are a bit slow and think your car is worththat may have bad credit, so if your credit rating is
more than it really is, you just might get a clevergood, you shouldn't have to worry about being taken
salesperson that will give in, and agree to anadvantage of by the dealership.
excessive price for your trade in. Now you might beThe bad news is that for those people who are
pleased by this, because you may be thinking thattaken advantage of, it usually means upwards of
you are 'putting one over' the dealer. No so, generally$1,000 more in finance fees and an additional $50 a
the sales person will look up on the computer or inmonth added to your car payment. To avoid this
the Car Dealers Price Guide to find out the goingscam, finance your new or used car through your
price for your trade in and will start from there. Inown bank or credit union.
addition, believe me; you will pay for it in the end.The most abused fraud is the 'credit rating' scam.
How you ask? Well when the dealer charges TOOThe car dealership tells you that your credit score is
much for your new car. You can check on thelower than what it actually is. This is in order to
internet for a price as well, so go to au, so you arecharge you a higher finance rate on your car loan. It
armed with the real price, when you go to tradeis pure greed and the best way to deal with this is to
your motor vehicle.bring a copy of your credit rating from au with you
From time to time, a ruthless sales person will have awhen you go looking to buy a new car. That way
go at this. He/she will contact you before your newthere is no confusion about your credit rating.
car is delivered. When the niceties are over you willUnfortunately, no one is protected from this scam,
be told that there is an issue with the trade in. Youbecause the dealership doesn't care if you have good
will be asked to bring the car into the workshop foror bad credit when they try to con you.
further inspection. When your vehicle has been in theAnother favourite trick is the forced 'warranty' scam
garage, for 60 minutes, (having nothing done to it),where the auto dealership will insist that in order to
the salesperson will tell you that the mechanic claimsqualify for the car loan you will need to purchase a
to have found it is really only worth $500 less thantwo or three year warranty. Don't fall for this; you
what they have offered for it. Watch for this olddo not need the warranty. While you are tearing
ruse, because if you fall for it, the sales person getsyour hair out looking for your dream car I suggest
another $500 in his pocket. To make sure this doesthat you register with and browse through the
not happen to you go to and check out the greatthousands of ads they have online in their free car
car deals in their Car classifieds. You will findclassifieds. You will find private listings, dealers' listings
thousands of cars to choose from and be equippedand used their keyword or quick search to find
with all the information you need when you arrive toexactly what you are looking for.
look at the car you want to buy.Can you remember that extra $fee that seems to
Now if you don't want to be pursued by a dealerappear on your contract to compensate the dealer
just don't give a phone number. Say 'it's a silentfor basically doing nothing? It is a good swindle that I
number', '...don't have a mobile', 'can't leave a workam sure you have seen or heard of often. It's called
number', or at the test drive 'accidentally' give thethe 'dealer prep' scam. Yes, it is the extra $500 or
wrong phone number. If you don't, dealers willmore that is added to the contract when the car
sometimes pursue a potential customer until theyarrives in the dealership ready to be driven off the
wear them down to buy.car lot to, or by a prospective buyer.
Even after continual phoning, and when you end upTry to avoid paying this unreasonable fee if you can.
buying from a different dealer, the sales person (whoTry to find out whether the car dealership you are
has missed out on the deal) will then give you thebuying from has this fee. If they do, tell them you
bad news. When you tell them you bought elsewherewill not be buying the car if you are forced to pay it.
(at a very good price of $34,550) they will say, 'OhIf they will not knock off the fee off then find a
no, you shouldn't have paid any more than $32,000dealer that will strike this ridiculous charge off the
for it!' This is designed to make you feel as bad ascontract. While I write these articles, I am always
the salesperson, who lost out too. It also highlightssearching the web to find the best sites to visit to
just how spiteful some people can be.do extra research. I found au and found it interesting
No matter when, where or which dealership you mayto browse. is a great site to search because of the
stroll into, there is always a reason to feel 'lucky',news, reviews, thousands of new and used car
according to the keen sales person. Early in thelistings, the ease by which you can browse the site
month, they might say they missed their target lastand free registration.
month and are desperate to make it up. During theThe dealer 'mark-up' fee is another phoney fee that
middle of the month, 'the boss has told me to pushis made up just to pad the car dealership's profit
out more cars or I'll never reach my target thismargin. Once again, the dealer charges this
month either'. The most common, is probably theunnecessary fee for no reason other than greed. On
most used because most people fall for it. This is theyour new motor vehicle, this fee can be seen on the
end of the month trick.sticker marked on the manufacturer's suggested
The time of month may matter to some dealersretail price (MSRP). These are just a few of the
sometimes, though; it never matters to a car broker.many scams and tricks that surface from time to
Beware of this because you may end up payingtime particularly when you are trying to buy a new
more than you expected. Go online tocar.
consumer.vic.gov.au and find out the information youWe know that these practices go on, just as we
need before rushing headlong into the 'big end ofalso know that there are many trustworthy car
financial year deal'. This trick deserves seriousdealerships. What you must be aware of is that you
consideration. It is the most elaborate trick of thismust find the right dealer who can and will sell you a
type. Manufacturers know that companies often buycar, without trying to rip you off in the process. A
around this time of year for accounting purposes.good and trustworthy dealership can make the
They therefore rarely offer any factory discounts,compensation they deserve for their efforts. All you
and they sometimes increase their retail prices tohave to do is find that dealership. When you do write
take advantage.in, we would all like to know.
To find a great deal on a car why not log on to It's