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
Looks great in large print, but somewhere else in
little bitty print it will say W.A.C., or with approved credit. To
qualify for zero-percent financing, you must have a very high credit
score. It should be at the least 700.
$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
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
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.
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