Buying a car is sucks. I don’t like being pressured. I don’t like to haggle. Just let me purchase a vehicle for a fair price and be on my way. And there are a few things that I look out for from a dealership when buying a vehicle. These are my four car dealership red flags that will make me get out of my chair and walk right out of the dealership.
If the dealership requires a credit application to go on a test drive, RUN AWAY!
The first car dealership red flags that I avoid like the plague is requiring a credit application in order to go on a test drive.
You should always protect your credit. Never let someone pull your credit unless you are ready to purchase the item. A hard pull of your credit will damage your credit score for a little while so you should limit the number of times that your credit is pulled to once or twice per year.
Also, there is absolutely zero reason for a dealership to need to pull your credit for a test drive.
When a dealership tells you that you need to let them pull your credit in order to take a test drive, what they are doing is pre-screening you to see if you are worth their time. While you are out on the drive, the sales manager will be going over your credit history, payment amounts, collections, etc. to see if they should waste their time on you or not.
In all actuality doing this is often discrimination.
Once you have driven the vehicle and you want to proceed with the sale and financing of it, THEN they can run your credit.
If a dealership requires a credit application for a test drive, that is a scummy and scammy dealership. Do not do business there. Simply walk away and go to another dealer to find a car.
If the dealership “can’t find your keys” after you give them to them, DON’T BUY A CAR FROM THEM!
I have had this one happen to me once before and I have heard of this happening to lots of other people.
The second car dealership red flag is a dealer not giving your keys back to you.
It goes like this.
You go into a dealership to look at a car and tell them that you might want to trade yours in. They ask for your keys so they can go assess your car for its trade value.
You look at another car and decide not to buy it for whatever reason you want. You go to leave and ask for your keys back and the dealership says that:
- They can’t find your keys.
- Your keys are locked up until after lunch time.
- The manager has your keys and he/she is in a meeting.
- Etc.
I know it sounds ridiculous, but some salespeople will do whatever they can to keep you in your seat longer in order to make the sale.
This is not only sleazy, but it might even be illegal. Not allowing someone to leave could be considered false imprisonment.
If a dealership does not allow you to leave when you want to leave, you leave anyway and maybe even call the police.
If the actual price is more than the advertised/sales price, DON’T BUY FROM THEM!
The third car dealership red flag is if the actual price of the vehicle that you are looking at is more than the sales price.
A little bit of a caveat.
Most of the time when you buy a vehicle, there will be added features that you can add on.
- Extended warranties
- GAP insurance
- Free maintenance
- Floor mats
- Paint chip protection
- Etc.
That is not what I am talking about.
What I am talking about is a situation where you look online and a vehicle is listed at $25,000 and then you go into the dealership and the salesperson says that it is $28,000.
It happens all the time.
Car dealers are in the business of making money. But sleazy ones will do it in a shady fashion. Such as inflating the price to more than the advertised price.
I would add to this that if a car is listed at a particular price but in the fine print the ad says something to the extent of you have to finance with them or it will be a +$1,000 charge and/or you have to have a trade in that is less than 5 years old with less than 75,000 miles or it will be a +$2,000 charge.
Do not do business with a dealership like that.
That dealer is hoping that you don’t read the fine print (like most people including myself) and then you come into the dealership and either forget about the original price or fall in love with the car and pay the extra money.
If a dealership has an actual price that is more than the sales price of the car, do not buy there.
If they offer to reduce the interest rate in exchange for buying other products, THAT IS ILLEGAL!
I have never had it happen to me that I can remember but I have known people that it has happened to.
The fourth car dealership red flag is if a dealership offers to reduce the interest rate in exchange for buying additional products, do NOT buy a vehicle from that dealership.
In fact, a dealership doing this practice is breaking the law.
There are no times where you should be buying your interest rate down with the purchase of extra products.
If/when this happens it will often be in exchange for buying an extended warranty, GAP insurance, or something similar.
If a car dealership offers to give you a lower interest rate for a quid pro quo. Do not do it. Run away!
Final Thoughts
If you are looking for a vehicle and a you see any of these car dealership red flags, do not buy from them.
And make sure that you are following my car buying guidelines as well. They will help you to reduce your car debt so that you can get ahead financially.
And if you want even more help with buying vehicles, check out Car Edge. This is a really good source of information for the car buying process as well as information on different makes and models, warranties, recalls, etc.
You can do this!
I am here for you!
Until next time!
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