Auto Loan Dealer Tricks 2010

Posted on by Forest in General, Opinion, Saving Money & Finances

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It’s been a very tough year for Auto Loan Dealers but in some ways it’s been a good test to stream line the industry and get some of the shadier operations run out of business and the more caring customer friendly dealers a chance to survive. No matter how friendly, how good after sales service is or what amazing deals they stock any auto dealer has tricks up their sleeves to get you to buy that shiny new dream machine.

I know an auto dealer very well and I can honestly say he is one of the most well meaning, giving and loving people I know. Obviously he always tries to upsell you to more but I don’t believe he is trying to be deceitful and he believes in his products.

Often when you buy a car you need a loan and that’s not too difficult to get if you earn well and have a decent credit record. Personally I would avoid loans but if you are going for one be careful not to get upsold too much.

Here are some of the auto loan dealer tricks you may experience this year when buying a new car

Do you drink Coffee? – You are in the car lot, you see a shiny 2007 Audi A8 and want it bad. However it’s just out of the agreed rate that you have budgeted in for a loan. Car dealers watch you like hawks. That old Camry in your budget is nice, it works and it’s reliable but the dealer knows that’s not what you want. Sitting down to talk about the cars they ask you “Do you drink coffee?”. Of course it could be any other item here but coffee is a common one. The dealer will then work out your starbucks habit costs and say something like “Well you spend $60 a month on coffee, cut the habit and you can afford another $55 a month on loan payments, get the Audi and save yourself $5 per month”. How could you refuse! Well the lesson from this is drop the coffee habit and buy a cheaper car until you can save up for the Audi in hard cash…. Just my 2 cents .

That car isn’t right for you – Like I said before the dealer is like a hawk. However hawks are not as well versed in psychology. I am convinced some dealers could out psyche any quack! If you are really eying over a car but express concerns about price then you may have this trick pulled on you. The dealer will come over and let you know that they think the car of choice may be too much for you anyway. Not in cost but in style. They will take you to a boring alternative and even start running the numbers and seem like they really believe in the lesser car. Later in the workings they may drop a sly comment or two like “Well I suppose the <insert super car here> would only cost an extra $75 a month” here and there. A fellow blogger had an excellent example of this in action but I can’t find the post anymore… If anyone has the link I would love to link it here!

Why pay cash? Get it cheaper with a loan – The dealer gets all sorts of perks for getting you to sign to a loan. Even if you are standing there with a suitcase full of cash, ready to buy the dealer may still want to steer you towards a loan. Even with the cash on the table, calculator in hand and negotiations in full swing you may find the dealer saying that they can offer a huge discount if you buy the car on finance. Of course they will earn more than any discount they give you by signing you up. Be very careful!

Auto Loan Dealer Tricks 2010, what tricks have you been hit with this year?

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