Let me tell you a story. It is a common story, one I am almost 100% positive you have experienced yourself. It is the story of a young man who decided to go grocery shopping one Sunday afternoon.
The store? Mobbed. It was not uncommon for a Sunday in this sleepy little town. Everyone and their sister was shopping. The weatherman had predicted a storm, so the needed ingredients for French Toast were flying off the shelves as if they were free. The young man was there for his weekly shopping adventure, he would need just enough to get him through the week. He could typically fill everything in the small confines of the hand-basket, but they were nowhere to be found. His only option? The last shopping cart.
We all know this particular cart. It is the one seen hanging by itself, sitting askew in the entry. Lonely. As if everyone in the world had neglected it for something better. The young man knew better. He knew it would be a hassle, but he was desperate.
He grabbed the handle and pushed. The shopping cart lurched forward with gusto, happy to be utilized, it had finally been chosen. The first five feet? Near perfection. Maybe they had been all wrong about it. Maybe. 10 feet? A slight shimmy emerges. Possibly just one of the wheels needed lubrication. It will be fine, the young man says to himself. 15 feet? It’s true colors develop. It pulls hard to the right. It is driving sideways.
The shopping-cart-of-doom has emerged yet again.
The shopping-cart-of-doom.
This story is funny because we all know it is true. We have all had a bad shopping cart every now and then, trying to avoid bouncing it off one another as we careen our way down the aisles. We avoid it if at all possible, of course, because nobody wants the hassle. We want smooth-sailing as we pick up the newest flavor of Oreos from the shelves. We expect it. Shouldn’t we want our cars to be the same way?
Did you know that you can purchase a vehicle that has been in a accident for thousands less than a comparable one without the accident history? Buying a frame-damaged (and repaired) vehicle can easily save you thousands. However, should you?
It comes down to personal preference, really. A frame-damaged vehicle could have been repaired properly. It could have only been minor damage. But, it also could have a bent frame that is slightly tweaked causing it to drive slightly to the left or right, no matter how much you spend on an alignment. It could be potentially unsafe, as the crash zones have been structurally weakened, putting you or your loved ones in imminent danger should you be involved in an accident. It also could cost you thousands in repairs down the road, because the “fixes” no longer held.
Nobody would willingly put their loved ones at risk, right? So, why would you take the chance? Is it really worth the potential “savings”? Only you know the answer to that question.
Always do your due diligence. Ask the dealer if the vehicle has been involved in an accident. Ask for a history report. Make sure your vehicle’s history is not a mystery.
Let’s admit it. Car-buying can often be a stressful, complicated experience. Once you find a car you are remotely interested in, you may ask friends for recommendations, and they are often quick to give you great advice: “haggle the interest rate”, “don’t accept their first offer”, or “be ready to walk out the door”.
Good advice to be sure, but why is it necessary? You can thank car dealers for it. Why? Because they are the best at their job: making money and selling cars.
Let me ask you a question. Imagine you are walking down the street in a city when someone approaches you and asks if you are interested in playing a game. They show you a rubber ball and three plastic cups. Your task? Identifying under which cup the ball is hidden. If you correctly identify the correct one, you can double your money! Great deal, right? WRONG. This is a classic example of a “shell game”, a game of deceit and slight-of-hand where only the perpetrator profits. The odds are stacked against you. You wouldn’t trust your money to this con artist, would you? Of course not. So why do you let your dealership play?
That’s right, folks. The automotive sales industry enjoys playing a “shell game” with their customers, pretending to give you a good deal, only to have the perfect slight-of-hand, expanding their wallets in the process. Perhaps you haggled the price of the car down $400 bucks. Good for you. At least until they raise your finance interest rate, costing you $2,000. Shell games happen every day. They just call them “good deals.”
So. It is time to take back your high ground, and tell the dealerships you are onto their games and tactics. You no longer want to play the game by their rules. For once, you want to be treated fairly. How? The following 11 questions are designed to start a conversation with your chosen car dealer. If a dealer refused to answer, or provides an answer you don’t particularly feel is truthful, you may want to explore another option. Ultimately, you need to go with your gut instinct: that might mean walking away from a “good deal.”
1. Is the price on the Internet the “total price”?
A lot of the car business starts online these days. You go to Cars.com, CarGurus, or your local dealership website and see a “great deal.” So, you drive to the dealership… why is the price different?! Because they got you in the door and their chances of selling you a vehicle went up significantly. The odds are ever in their favor.
You could even try this fun game… after receiving your price quote, tell them you are planning on paying cash or writing a check. More often than not, they will stop you, and say you cannot buy the car for that quoted price. SHELL GAME ALERT. Check the fine print. You must use special DEALER financing. That can’t be that bad, right? Ahem…
2. Will you give me the “buy rate” that the bank approves on my application, or will you mark up my interest rate?
You work hard. You pay your bills. You have a 730+ credit score. You pay 5.99% APR in interest?! WHY?! Because the dealership has to pay for that fancy massage chair in their lobby, the smoothie machine their employees utilize, and the autographed jerseys hanging on their showroom walls.
This is where dealerships make so much of their money, and most people don’t know about it. If you choose to use only one of these 11 questions, please USE THIS ONE.
Dealers are allowed by finance companies to mark-up your approved interest rates, and tell you that got approved at the marked-up rate. That’s right folks, the bank approved you at a 3.99% (BUY RATE) but the dealership is allowed to tell you that your approval is 5.99% (CUSTOMER RATE). That 2%? Thousands of dollars that you pay. Thousands. Just lining their pockets. Who needs fleece when you have the hard-earned money of customers to keep you warm and fuzzy?
If someone shook your hand to close a deal, while simultaneously lifting your wallet from your back pocket, you’d probably be a tad bit upset, right? Then why aren’t you? Because they are so good at it, you’ll never even notice.
ASK FOR THE “BUY RATE”. Demand they show you the approval. Bring in your own financing.After all, it’s your money, so you should keep as much of it as you can.
3. What will you allow for my trade-in?
Have you ever watched or heard a commercial for a car dealer, only to hear the buzz words “Trade Assistance”? The only thing they are often assisting you to is a financial windfall… for them. Should you decide to purchase a vehicle, bringing in a trade, the dealership is kind enough to give you a “$1000 trade assistance” in addition to the ‘value’ of your trade — Well…onlyif the vehicle is retail-able, fits certain requirements for make/model/year, and that you are willing to use the previously mentioned dealership financing.
*cough* Welcome to yet ANOTHER shell game. It is so easy for them to discount the value of your trade, and then offer it back to you as a “special” deal. They act like your best friend, offering you an insider offer. Ask to see the ACV (Actual Cash Value) of your trade. Ask how they source that information. Ask them why they are only willing to give you that $1000 if you use their financing. Require them to be honest.
4. Will you charge me more than $199 for document and registration services?
So, you made it through the price of the car, the financing, and the trade. You are feeling pretty good about it. Then you sit down in the room with the finance manager to review the fees associated with your purchase. $795 Documentation Prep Fee? What the…?
It does not cost the dealership $795 to write up several pieces of paper, print them, and attach the little Post-It branded flags indicating the spots to sign. They are not 3D-printing these in gold, nor are they using paper sourced from trees so remotely located that the only way to obtain it is through a life-or-death week-long excursion on the back of wild mountain goats.
If you went to your local 7/11 to purchase a gallon of milk for $2.99, only to have them attach a $795 milking fee, you’d walk out right? Do it to your dealer. Demand a better price. $199 is reasonable for the work, especially since a lot of dealers will try to save you from having to deal with the Department (or Registry) of Motor Vehicles. $199.
5. Will you charge me any other fees?
They go by many names — Dealer Fee? Ask them to define it. Specifically. What is it used for? Because it sounds like they just want to go to dinner at a nice steakhouse and your invitation will be lost in the mail…
Transport Fee? So you have to pay for them to bring the vehicle to the dealership? Right… because when you go to Target they print “Transportation Fees” on the receipt, right under “Purina Puppy Chow”, I forgot.
Sales Tax. $199 document prep fee. Registration and Title Fees for your local state. That should be it unless you opt for GAP insurance or an Extended Service Contract. If they won’t tell you about the other fees, ask them if they have a fee for breathing air as you walk out of their door…
6. Will you provide me a Vehicle History Report?
If they refuse, refuse to buy their car. Simple as that. And just make sure it matches the car you are looking at — I wish I didn’t have to preface that, but SHELL GAME.
7. Will you do a thorough inspection of the vehicle and perform all repairs and maintenance that is needed, and give me written documentation of the repairs that were done?
Most people, when buying a house, get a home inspection. Why? Because buying a house with a leaking roof is a bad idea unless you are Mr. Fix-It or Mr. I-Like-Spending-Money-A-Lot. It just makes sense.
So, why buy a car “as-is” without knowing what the “is” is?
If they don’t perform an inspection, ask if you can bring it to your trusted mechanic for an inspection. They won’t let you? Then don’t let them near your wallet.
Don’t buy something you’ll regret a week or two later when your brakes start to squeal or the hose springs a leak. Buy something someone took pride in making sure it was a good product.
8. Will you give me a Money Back Guarantee or Satisfaction Promise that allows me to return the vehicle for any reason within 30 days?
Have you ever bought a pair of shoes, worn them for a day or two, and realized they were uncomfortable? Did you return them? How about a month? A lot of stores allow it.
Why? Satisfaction.They want you to come back.
Try doing that with a car. Maybe you drove a Prius and realized that the fact it doesn’t make an engine sound is actually quite terrifying. You want to return it a week after your purchase. Good luck.
Demand to be treated better. Demand they stand behind their products. Ask for 30 days. 30. You ask it of Walmart. Ask it of your car dealer.
9. Will you perform all open recalls on the vehicle prior to delivery if the parts are available from the manufacturer?
If they say no, please rephrase the question prior to walking out — “So you are willing to sell me a potentially defective and unsafe product?”
10. Will you provide me a free loaner vehicle if my vehicle is in for repairs in the first 6 months?
“So you just want my money? Good to know. Thanks for helping. I’ll just show myself out…”
11. Will you give me a 6-month powertrain warranty on the vehicle?
Ask them to define what they mean by “certified” vehicle then, because it certainly sounds as if it is a clever marketing gimmick. Unless they mean you certified to give you problems, or you should be certifiable if you choose to work with them. I suppose that works, too.
If they don’t stand behind their product, do you really want to do business with them? Don’t buy into their “taillight warranties”. You know… when all of their promises go away the second they see your taillights. Demand something better.
At the end of the day, when asking these questions, you are doing your part to ask a dealer to treat you fairly, to simply treat you how they would want to be treated. Is that really so much to ask? I don’t think so and neither should you.
