Advertising slogans

You've probably heard that things that sound to good to be true are too good to be true. This goes double for new car advertising. Most car dealerships advertise in large headlines or a fast pitch that you need to rush down and buy at prices you'd be crazy not to take advantage of. 

But have you noticed the small print at the bottom of the ad or the fast talk at the end of the commercial? If you have, then you will have noticed some of the traditional advertising gimmicks that dealers use.

Here's a few of the most common gimmicks:

Zero percent financing

$4,000 for your trade in no matter what
This is a very popular ad that dates back to the 50's. Don't fall for it. No dealer will pay more than what a vehicle is worth. If he is paying more for your trade-in, it's been added into the price of the new car. You may lose your negotiating power in this situation. Be aware of the true value of your car.

Buy it for just $150 a month
Or through in any number you like. The math is easily manipulated to fit monthly payment to the price of a car. If you finance it forever, you'll have a lower payment. They may not even be talking purchase, but lease. Or you may have to put a huge amount of money down.

And you will, of course, have to have excellent credit. If you have poor credit, your payments will be higher. The ad could also be referring to only one car on the lot that doesn't even have the standard options that people are looking for.

We'll pay off your trade-in
This should be called you'll pay for your trade-in. If you owe $8,000 on your car, but it's only worth $5,000, the dealer isn't really paying off your vehicle. The dealer will add the $8,000 to the cost of your new car. Because the loan will be more than the value of the new car, you will probably pay a much higher interest rate.

Huge end-of-the-year savings
They must make room for new models. Dealers love to say, several times a year, that this is the single biggest chance to save the most money on a new car. Yes, you can save money if you drive the soon-to-be-one-year on the market car for seven years or longer. Then you won't get anything for it when you sell it. If you sell or trade in your car every few years, a year-old model could cost you a lot of money.

Below-invoice prices guaranteed
Don't let any dealer tell you that he isn't making any profit in deal just because it is below invoice. The invoice isn't necessarily what the dealer paid. He may be getting a rebate and a dealer holdback fee. This is a percentage of the price held back by the manufacturer that is paid to the dealer upon the sale of the vehicle. The percentage usually ranges between 2% and 3%. You can check the blue book value to get the real invoice price.