DON’T BE HAD BY A CAR DEALER AD
The
CarGuy Show prides itself in pointing our listeners to the good Car Dealers
that are part of the show. Our sponsors
and recommended dealers are hand picked and closely scrutinized before they can
become a part of the show.
We
also take pride in exposing misleading car dealer ads, or ads that are intended
to mislead the public. Below are phrases
or claims you will find in the DFW area on TV, radio, newspaper, or the
Internet.
This
list will grow as dealers find new ways and gimmicks intended to draw people
through false and misleading advertising.
The following are the claims that in this writer’s opinion fall into
this category and also an explanation of why I find them offensive.
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“We’ll pay off your trade no matter WHAT you owe!” This gives you
the illusion that the dealer will give you what you owe for your car. People who are upside down and know it
generally fall for this one. All it really means is if they obtain credit
approval they add the negative equity to your new loan. The dealer is not doing anything out of the
ordinary course of business. This claim
is in violation of the
Ø
“All Credit Applications will be accepted” This lends one to believe that everyone’s loan will
be approved. In reality, all it says is
that they will accept the application…not necessarily that it will be approved
by any lender. This claim is also in
violation of the
Ø
“New Vehicles for 50% off” or “New Vehicles for half
price” This one is highly illegal and extremely
misleading. In most cases, this is a
pre-paid lease where payments are made in advance. Simply put, let’s say a normal lease payment
is $300 per month for 36 months. In this
case you would pay $10,800 (36x$300) UP FRONT.
After three years you turn the car back in OR have to buy the car for
the residual. Mileage limitations apply
as does wear and tear requirements. So
you do pay 50% of the sticker price for the car, but it’s not yours.
Ø
“We’ll give you $3000 (or some other amount) for your
trade no matter what condition it is in!”
This is a VERY old trick and illegal in
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“Buy a new vehicle and get the second one for free (or
$1)”. This is the same as the guaranteed trade amount. If the dealer over charges you for the first
car, he can absorb the cost of the second car.
You end up paying normal price for both cars.
Ø
Abnormally low prices- When a dealer
advertises a price that is abnormally low; it is almost always a classic bait
and switch. The dealer bites the bullet
on one sale of one vehicle at a super low price…but continues to advertise that
price and hides the fact that there was only one. Upon arrival, it is already sold but they
have “similar” vehicles and the games begin.
When a dealer advertises a vehicle price, look closely…the law is they
must tell if only one is available. The
best dealers always tell you how many they have at the advertised price.
Ø
“If we can’t beat your deal, WE’LL JUST GIVE IT TO
YOU!” I
am amazed when people fall for this one.
Dealers do it different ways…in one case they require that they be able
to go buy the vehicle you are looking at from the other dealer, which is not
going to happen. Or, sometimes they
require you to bring the offer in writing signed by a Manager. When this happens they can beat the deal by
Ø
Free Gas or Free Insurance- Nothing
is free. When a Dealer offers you
something of value over about $200, they pack the cost into the deal
upfront. In other words, if gas for a
year is estimated to cost $1000, they add that $1000 to the cost of all the
cars they sell. Again, you paid for it
in the price of the car.
Editors Note: The opinions expressed are not endorsed by
WBAP Radio or any other entity including CarGuy Media, Inc.