Enticement What it really isAd car Teaser: cheapest car with
little or no options
0% financing (dealer) Can be a tactic to get you to pay MSRP
Pay off another loan or lease
Refinance with the dealership and pay off 2 cars at once + additional fees!
Enticements
Enticement What it really isWe match any deal Sure, if you can, by some miracle, get
the paperwork…
Low monthly payment Get you to focus on payments rather than the price of the car
No payments until… Oh, sorry, that was a misprint – we’ve requested a retraction
Rebate Read the fine print – dealer might retain– another tactic to sell at MSRP
Enticements
Dealer Negotiating Tactics
Focus on monthly payment not price Pressure to lease not buy Negotiate down from MSRP (or MSRP +
markup) Wear you down / switch salesmen or lost
keys routine
Dealer Negotiating Tactics
“This car may not be here tomorrow” Sympathy ploys Salesman gets a call from “interested” buyer Need a deposit before signing (try to
obligate you before closing the sale) No haggle pricing = No deal
Scams
Most common victim: someone with bad credit 10,000-point inspection/Dealer Prep Costs Additional Dealer Markup (ADM) Financing fell through (before or even after taking
possession) Wrong date (or other info) on paperwork Hide the Mulroney (MSRP) Sticker (this is a
felony)
Legal Obligations
Dealer– Disclose APR and total amount of interest that
will be paid– MSRP (Mulroney) Sticker can only be removed
by buyer
Buyer– In most states once you drive it off the lot it is
yours
Recommendations
Do your homework– Find out dealer acquisition cost (ie. consumer reports)
NEGOTIATE UP from this!– Research dealer rebates and manufacturer offers – don’t let the
dealer keep a rebate you’re entitled to!– Already have financing arranged (ie. loan from credit union)
Recommendations
Find a salesman through the service department Don’t take possession of the car without payment
coupon book and paperwork all done Don’t buy on first day out Review paperwork & check dates Understand every line item and what comprises
monthly payment
References
www.smartcarguide.com www.consumerreports.com www.carbuyingtips.com www.kbb.com (Kelley Blue Book) dir.yahoo.com/Recreation/Automotive/
Buyer_s_Guides