Ferox International Blog

Don’t you get sick of auto dealers?  It almost seems like a big game you play with the dealership trying to get down to a reasonable price.  Here are 10 things the auto dealer won’t tell you.

1.  I buy my inventory for a lot less than you think

You will never hear an auto dealer say these words.  Luckily, the Internet has made it much easier for the consumer to find out how much a car is really worth.  You can know what the dealers pay for their inventory before even walking onto their lot.

2.  Our lenders aren’t as tough as I make them seem

Car dealers don’t exactly have the best reputation.  Some car dealers will do anything to sell a car.  One common trick that many car dealers use is to blame everything on the lender.  They will often tell you that you have to buy an extended warranty because the lender requires it, etc.  Don’t buy into this.

3.  State lawmakers are in my back pocket

Car dealers have to pay huge amounts of money in sales tax.  One way to get around this is to sell cars online.  Some states require dealers to have a brick and mortar location.  However, some dealers do anything and everything to get out of paying taxes.

4.  The bait-and-switch is alive and well

Car dealers are famous for using the old bait and switch method.  Of course, they aren’t going to tell you they are using this method.  It has been a tried-and-true method for them for a long time, why would they spoil it now?

5.  I’ll give you a great price-and then, lowball your trade-in…

Car dealers love to make you think that they are giving you a great price.  Once you are set, they lowball the value of your trade in.  What does this mean?  More money in their pockets.  Don’t trade in your car unless you get what it is worth.

6.  …and you won’t know since Kelley Blue Book is on my side

Many customers look up the value of their car before going into the dealer.  What many people don’t know is that Kelley Blue Book isn’t the most correct place to look up the value of your car.  Try going to NADA.  This will give you a more correct trade-in value.

7.  The car you are buying was totaled last month

Dealers don’t want you to know that the car you are about to buy is a complete lemon.  NEVER buy a car without a detailed CarFax report.  The car may look fine, but it may be seconds from completely falling apart.  It really is amazing how mechanics can make a totalled car look brand new.  Don’t fall for it.

8.  Your loan puts cash in my pocket

Car dealers don’t want you to pay for your car in cash.  They offer to find you an auto loan after you tell them that you can pay in cash.  Car dealers take the interest rates that the lender offers and increase it a couple of points.  These points put cash directly into their pockets.  Never get an auto loan directly through the car dealer.

9.  Our ‘new and improved’ customer service is a joke

Car dealers may advertise that their customer service department is new and improved.  This can be just a gimmick.  You might end up getting the same terrible customer service you did before.

10.  A lease is a great deal…only for me

Why are dealers trying to get people to lease their cars instead of buying them?  Because the lease generates more profit than sales for the dealer.  Customers who choose the lease option are usually leasing a more expensive car and only 10 percent of these people haggle the price down.  What does that mean?  More money in the dealer’s pocket.

Don’t buy your next car without knowing how to handle the car dealerships first.