BEWARE of the Ways Car Dealers Can Rip You Off

by Janice Forostiak, Marketing Department

The new cars are rolling into the dealers' showrooms right about now, and if you’re planning your next car or truck purchase, you’ll want to do your homework so that you get the best deal. You don’t want to be the victim of a sales tactic you can’t handle. So, pay attention to the following advice from Shauna Zamarippa of Money Talks News. (Not only is she a personal finance writer, she used to sell cars for a living!)

1. Inflated Sticker Prices
The stickers on the window include prices that aren't all set by the manufacturer. Some are called “bumper stickers” – not because they went on the bumper, but because they bumped up the price of the vehicle. What’s on there? Services like VIN etching, fabric treatment, undercarriage sealant – which you might not need or could do yourself cheaper.
Solution: Tell the dealer you want to see the “original invoice” minus the “bumper sticker.” If he refuses, walk out and head to a dealer who will.

2. Lowballing your trade-in
The Kelley Blue Book price is the most effective way for dealers to lowball your trade-in. But dealers actually use NADA (The National Automobile Dealers Association) for used-car valuations, typically higher than KBB, which can undervalue trade-ins by as much as $5000.
Solution: Print out the NADA values for your car based on its age, mileage, and condition – so the dealer knows that YOU know its true value. Better yet, sell your car privately before heading to the lot. That’s the way you’ll get the most money for it.

3. Paying for “Customer Service”
On your paperwork, you’ll notice something called a “customer service fee" -- or dealer charges for handling your paperwork, issuing your tags, processing your title, and paying your taxes – in other words “to do their job.” They can charge anywhere from $299 to a whopping $1,000 for something that takes about 30 minutes! (That’s a pretty good hourly rate, but you should keep that money in YOUR pocket!)
Solution: Don’t pay it. Or at least get it reduced, especially if you’ve obtained financing through the credit union.

4. GAP Insurance
Not a bad product, but way overpriced at the dealership. If you wreck your financed car, GAP insurance pays the difference between what you owe and what it’s worth. The dealership will try to sell it to you for $500 or more. But you can often get the same thing at the credit union for less than half.
Solution: Buy GAP insurance from your credit union! Click here for details.

5. Extended Service Contracts
Extra protection and peace of mind are usually good things when it comes to car buying, but a dealer isn’t the least expensive place to find it. You’ll find better rates after-market than at the dealership.
Solution: Before deciding on an extended service contract, shop rates, terms, and deductibles from outside warranty sources. (Signal Financial offers MRC, or Mechanical Repair Coverage, at substantial savings!) Click here for details.

Feel better about going to the dealer? Good! Test drive. Be tough, and come see us for the rest.


Source: Read more at www.moneytalksnews.com