Auto Trends

If it Seems too Good to be True… It’s probably Bologna!  (Such as this for example)

*Photo Courtesy of Woodsy at Stock.xchng

It is that time of year again, when dealers are clamoring to drum up business with a few choice advertisements and “special” offers. It is getting closer to when the new models will be coming out and they do not want to be stuck with a stock pile of the old, while everyone is wanting the new.

Especially if a model is going to be discontinued for the next year, they know that they will get increasingly difficult to sell. There is just something poisonous to the thought of buying a car that the manufacturer is pulling the plug on. Is it unsafe? Are there serious component issues? Not very appetizing to the average consumer.

This is the time when all the wacky television and newspaper commercials and advertisements will start coming out with these infamous lines meant to pull in unwary customers:

“No money down!”

“This weekend only!”

“Minimum $3,000 trade-in; just push, pull, or drag it in.”

“We will match your tax return as a down payment!”

“Low, low interest rates

“$100.00 for everyone who takes a test drive.”

And then they reel you… hook, line, and stinker (oops, I mean sinker)!

Do not fall for these lines. There is hidden meaning between each one and it actually has a lot less to do with saving you money than it does to get rid of a stock pile of new (and soon to be thought of as used) cars.

“No money down!” This is always a bit of a gimmick, because most people know that by putting money down, they will saving themselves in interest and also bring down their overall monthly car payments. Sometimes by as much as $100, depending on the amount of savings or the worth of the vehicle you are trading in. This is no favor to you at all. They stand to make more money from you with this arrangement. Sometimes they also give you a higher interest rate in response to the no money down deal, so make sure you know all the factors before signing on the dotted line.

“This weekend only!” Not to mention the weekend after that, then the one after that. And if you are really, really lucky; they just might extend it through the rest of the year! Dealers know that the item of pressure not only gets you to sign a contract quicker, but will also get you through the doors a lot quicker too. It is a lot like those stores who have a going out of business sale for three years straight and are obviously still buying inventory. The best deals you will find that may have a time limit will be manufacturer incentives and you can check their websites for the most current offers. Not that local dealers can’t have their good deals, but that shouldn’t be the biggest factor tempting you. A dealer will try to pressure you into making the deal right then because they know that once you walk out the door, the chance of you coming back are slim. But the chances of them being there the next day with the same deal are pretty good too!

“$3,000 cash back.” Be sure to read the fine print on this one, because more than likely there is a minimum value of the car you need to purchase before you will be qualified. This is also sometimes known as the “bait and switch”. They bait you with their top cash back award, which is usually for the $50,000+ line of new cars. Then once you are in their office ready to sign, they let you know that you are only qualified for $750 cash back for your particular vehicle.

“Minimum $3,000 trade-in.” This is a very common dealer ploy. They keep your mind focused on the great trade-in deal they are giving you, so you will be less likely to scrutinize the actual cost of the car. You may be getting the highest trade-in, but it means nothing if you aren’t getting a good deal on the vehicle itself. It is actually sometimes the best idea to not even mention your trade-in until you have actually made a final deal on the vehicle. Take it one step at a time and make sure you are comfortable with the deal before talking trade-in incentives. And also, do not let them go back into the original deal once you do start talking trade-in value, that is only going to confuse the situation all the more.

“We will match your tax return as a down payment!” This is probably the same gimmick as the $3,000 minimum trade-in. Keeping you focused on the money down, rather than the actual deal itself. More often than not, there will be so many fine print items to these deals, you would be better off sitting down to haggle a good old fashioned price and incentive package.

“Low, low interest rates.” Absolutely… All you need to do is put down between 50% and 80% of the cost of the car, present perfect credit and the 0% financing is all yours! These interest deals are unfortunately the most beneficial for those who (in some ways) need them less. People who have flawless credit and a huge chunk of cash waiting to put down on the new vehicle. Any black marks on your record are going to haunt you here. There is truth to the saying that it takes money to make money and if you are in a poor credit bracket, you can’t expect to receive the best deals that the dealer is going to have to offer. A used car may be your best bet in situations such as these.

“$100 for everyone who takes a test drive.” The $100 will be nothing more than a coupon book. This is simply a ploy to get you in the door. Nothing in this world is for free anymore and if it does happen to actually be free, that is probably about all it is worth!