Decoding Shady Car Deals: Recommended Reading for Every Buyer

Navigating the world of car buying can be challenging, especially when faced with deceptive practices from some dealerships. These practices not only cause financial strain but also emotional distress and frustration. In this section, we will explore ten common tactics employed by shady car dealers that every buyer should be wary of.

1. **Forcing Financing**: Some dealerships insist that you must use their financing options to purchase a vehicle. This ‘buy here, pay here’ scheme often results in exorbitant interest rates ranging from 19 to 29 percent. They may also push unnecessary extended warranties, ultimately causing you to pay much more than the vehicle’s worth. Remember, you are always entitled to seek financing from a third party.

2. **Hidden Titles**: When purchasing a used car, ensure that the dealership provides the actual title. Sometimes, cars still have existing loans with titles held by banks. If the dealership fails to pay off the loan, you could be stuck with an unregistrable car. Insist on seeing the title before finalizing any purchase.

3. **Arbitration Clauses**: Be cautious if a dealer asks you to sign an arbitration clause. This agreement means any disputes will be handled by a third-party arbitrator, often biased towards the dealership. This clause indicates that the dealer might not have your best interests at heart.

4. **Yo-Yo Financing**: This tactic involves dealers retracting a completed sale, claiming the financing fell through, and demanding new terms. Often, they take advantage of consumers by altering the contract to include higher rates or fewer benefits, as seen in the case of Courtney and Darren Johnson.

5. **Misleading Advertisements**: Some dealers advertise extremely low prices that are not actually available. This bait-and-switch tactic is designed to lure you into the dealership where they then pressure you into higher-priced deals.

6. **Trade-In Traps**: Dealers may offer low-ball valuations for trade-ins or fail to pay off existing loans on traded vehicles. This can leave you without a car and with an outstanding loan, as experienced by the Johnsons.

7. **Inflated Fees**: Watch out for extra fees that appear in the contract under various names like ‘dealer prep’ or ‘market adjustment.’ These fees are often inflated and unnecessary, adding hundreds or thousands to the final price.

8. **Undisclosed Damage**: Some used cars are sold without full disclosure of past accidents or damage. Always request a comprehensive vehicle history report and have the car inspected by a trusted mechanic.

9. **Pressure Tactics**: A common tactic is creating a false sense of urgency, suggesting the car won’t be available tomorrow or that another buyer is interested. This pressure is meant to rush you into a decision without proper review of terms.

10. **Incomplete Contracts**: Ensure every promised feature or service is written into the contract. Verbal agreements are difficult to enforce, and missing details can lead to disappointment and extra costs later on.

In the ever-evolving landscape of car buying, protecting yourself from unscrupulous dealerships is paramount. The good news is that there are effective strategies you can employ to safeguard your investment and ensure a smooth purchasing experience. Here, we delve into eight powerful moves to protect yourself from shady car dealers and arm you with the knowledge to make informed decisions.

11. **Get Pre-Approved Financing**: Before setting foot in a dealership, consider securing pre-approved financing from your bank or credit union. This strategy not only gives you a clearer understanding of your budget but also empowers you to negotiate from a position of strength. With pre-approved financing, you can bypass the dealership’s potentially high-interest loans and avoid the pitfalls of ‘buy here, pay here’ schemes.

12. **Demand a Written Agreement**: Never rely on verbal promises when purchasing a car. Insist on having every detail in writing, from the agreed price to specific features and add-ons. A comprehensive written agreement acts as a legal safeguard against any potential discrepancies or misunderstandings that might arise later.

13. **Research the Dealer**: Knowledge is power, and researching the dealership before making a purchase can save you from potential scams. Check customer reviews, Better Business Bureau ratings, and dealership history. Knowing the reputation of a dealer gives you a better chance of avoiding those with a track record of unethical practices.

14. **Don’t Rush the Purchase**: Shady dealers often create a sense of urgency to pressure you into a quick decision. Resist the rush. Take your time to compare different options, consult with trusted advisors, and ensure that the car you are buying meets all your criteria. Remember, a well-considered decision is a wise decision.

15. **Get a Vehicle History Report**: For used cars, obtaining a vehicle history report is non-negotiable. This report provides valuable insights into the car’s past, including accidents, repairs, and ownership changes. It’s a crucial step in uncovering any hidden issues that the dealer might not disclose.

16. **Insist on a Pre-Purchase Inspection**: Before finalizing any deal, have the used car inspected by a qualified mechanic. This step can identify any mechanical problems or potential red flags that aren’t apparent during a test drive. A thorough inspection can save you from costly repairs down the line.

By understanding these strategies and remaining vigilant, you can navigate the car buying process with confidence. Empower yourself with knowledge and ensure that your next car purchase is both a wise investment and a positive experience. In conclusion, while the world of car buying can be fraught with challenges, being well-prepared and informed helps you steer clear of deceptive practices and secure the best deal for your needs.

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Hebe Doneski on LinkedIn: #cxlawyer #customerexperience #cx #holycrap
How car dealerships can legally take back your car : The Indicator from Planet Money : NPR