Avoiding the tricks of the trade
Buying from a dealer can have many benefits over alternative options. However, dealers often have a few tricks up their sleeves to lure you in and spend the big bucks. Here are a few of the common traps to avoid when searching for a new car.
Demonstration cars may often be advertised as discounted new cars. This is where customers should be particularly cautious. While they may only have a small number of kilometres on the odometer, these cars are still used cars and should be sold as such. Many of them will have warranties that have already begun and this may affect the quality of service after purchase. Buying a demo car can be a great way of securing a good quality vehicle at a lesser cost, but buyers should always be cautious of these finer details when negotiating a fair price.
Bait and switch
A common trick for dealers is advertising a model at a substantially low price to get you in the door. However, once you’re there and expressing an interest to buy, they tell you the deal is no longer available before offering you another model or deal, which will likely be a much higher price. While there is not a great deal that can be done to reverse this, the best course of action may be simply recognising this act as a dishonest ploy and take your business elsewhere.
When a dealer offers you a discount on a car, it is not uncommon for them to regain their money by undervaluing your trade- in vehicle. In the excitement of buying a new car it can be an easy thing to overlook, but it can make a substantial difference to the final price you pay. It is crucial to enter into the process with an understanding of the approximate value of your trade-in and to know how much you are willing to pay.
Many dealers will offer you generous financing as part of your deal. Often when financing seems too good to be true, it is just that. It is not uncommon for dealers to highlight a low finance rate, but offset any of these offers with additional payments. Dealers may even finalise the sale before the financing has been completed, securing you into the sale before having the finance agreement pulled and replaced with one at a much higher rate. It is always a good idea to have a third-party deal with finance to avoid falling into this trap.
It is important to keep an open mind when making agreements with dealers and to be aware of the tricks and scams to look out for when buying a new car. It can be a confusing and often overwhelming experience that many people just don’t have the time to focus on. If it all seems a bit overwhelming, why not skip the dealer all together? Simply tell us what car you want and we’ll do the searching for you. Enquire today and your personal motor vehicle consultant will contact you within 24 hours.