If it's too good to be true...
Anyone who reads this blog regularly knows that I've mentioned that line before and it never needs to be finished. Just heard of another "technique" that absolutely appalled me.
A friend goes to a dealer in a major east coast metro, drawn in by an ad that says "Drive home in a new (brand withheld so I don't get a lawsuit) today for $13,400!" The cars mentioned normally retail around $20,000.
Upon arriving at the dealership, he finds a friendly salesperson who confirms that it's not a scam and that the deal is real. "I'll own this car for under $14K," my friend asked.
The salesperson, perfectly trained to word it just right, says, "Yep, if you write me a check for $13,699 ($299 doc fee) it'll be in your driveway this afternoon."
You probably see where this is heading.
After a couple of test drives, the negotiations started. He opted for one with more than the basic options, which the salesperson said would be sold comparably but just a it higher than the one in the ad. No problems yet.
Finally, the negotiations. The first pencil comes back at $23K. My friend started to object, but the salesperson cut him off nicely and said that it was just a starting point and that they had to list MSRP for paperwork purposes. He crossed out the number, turned the worksheet over, and typed the following statement for my friend to sign:
"I will be the driver of this ________ for $15,384 cash or check."
My friend was relieved. He signed, called his wife, and waited for the finance department to call him back for the paperwork.
This is where it got ugly.
Versus going into the details of the 2 hour exchange that followed, let me give you the details of the scam and you can use your imagination to fill in the blanks. It's a single pay lease option. A consumer can "lease" a car for three years, paying only the price of the lease itself. At the end of the 3 years, they can either turn it back in, trade it in, pay off the balance, or finance the balance.
The single pay lease in itself is not a scam. For many, it's a great way to "hedge your bet" that the car will depreciate quickly. Most trade or replace a vehicle every 2-4 years anyway, so it's an easy way to pay for a car and not have to worry about trade values or anything like that later.
The scam is, of course, in the way the mesage was delivered hours after the exchange began. The ad is misleading. The salesperson was misleading. The negotiations were misleading. It wasn't until the final stage when the "trap was set" that the truth finally came out.
This is a bad practice, indicative of the techniques used in the 80s and 90s that gave the car business such a bad reputation. When investigating deals and specials on vehicle, remember, if it's too good to be true...
This article is sponsored by honest dealers and automotive companies such as New Hampshire Volvo Dealers, Toledo Dodge Chrysler Jeep, and Beaumont Chevrolet. People have choices when buying new and used cars. It's up to you to get the information necessary to make a good one.
Car Buying Tips
Showing posts with label advertising. Show all posts
Showing posts with label advertising. Show all posts
Sunday, December 2, 2007
Tuesday, November 27, 2007
Car Buying Tip: The Best Time to LIE is Now
Almost all of the manufacturers and their dealers say the same thing during many of their commercials.
"Now is the best time to buy."
"Don't wait. This offer will pass you by!"
"Hurry, before the best deals are gone."
As buyers, it's in our best interests to wait for the absolute best deals. That's a no brainer. The tough part is sifting through the good deals to get to the great deals. If every deal is the best according to the advertising, how can we recognize the real gems?
First, a bit of history about how it works. The car business is impatient. All of them, from the CEO down to the salesperson, wants action immediately. They are compelled to "whip the horse" at all times. It's a constant sprint despite the fact that they are in it for the long haul. Thus, all advertising, all inquiries, and all contacts are treated in a way that will generate revenue in the shortest time possible.
The way that consumers can get the very best deal is to lie. No, I don't mean the lies propogated by other car buying advice websites, such as hiding the trade until the last minute, getting financing ahead of time and not telling the dealer, or making up numbers that you were "quoted." I'm referring to lying about the urgency of your purchase.
Set up an email account specifically for your inquiries. Once you've identified the make and/or model that you want, start contacting everyone and their dog from the dealers to the manufacturers to the third party websites such as Edmunds and Automotive. When prompted about time-frame on making a purchase, check the box for "Now."
Why? The simple fact is that people who are in the market today are the ones that get the most attention. They are the ones that can put money in everyone's pocket. They are forces to be reckoned with and demand attention.
After this is established, it's time to switch gears and wait. You should receive a ton of responses. Stress the fact that you are looking for the absolute best deal. Be polite in your responses, keep in contact regularly, and let them know that you can pull the trigger at any moment.
The deals will roll in. Compare them with each other. Research them on the Internet. Then, you wait again. What are you waiting for? You want the best deal, right? When the best deal arrives, EVERYONE you've contacted will let you know in unison.
In 2006, Ford was really pushing their low interest rates. It wasn't making a dent because almost everyone had low interest rates available at the time. So, they announced very abruptly that they were offering 0% for 72 months on most makes and models. This sent a ripple effect through the industry. In a week, I received contacts from everyone I'd been in contact with: several dealers, Ford, Lincoln, and Mercury, three 3rd party websites, and even a classified website. This resounding proclamation told me what I needed to know: this was the real deal.
In conclusion, don't lie to car dealers just because you think they are lying to you. BUT, it's acceptable to feign your interest to get on the lists that will let you know that the real "best time to buy is now!"
Car Buying Tips
"Now is the best time to buy."
"Don't wait. This offer will pass you by!"
"Hurry, before the best deals are gone."
As buyers, it's in our best interests to wait for the absolute best deals. That's a no brainer. The tough part is sifting through the good deals to get to the great deals. If every deal is the best according to the advertising, how can we recognize the real gems?
First, a bit of history about how it works. The car business is impatient. All of them, from the CEO down to the salesperson, wants action immediately. They are compelled to "whip the horse" at all times. It's a constant sprint despite the fact that they are in it for the long haul. Thus, all advertising, all inquiries, and all contacts are treated in a way that will generate revenue in the shortest time possible.
The way that consumers can get the very best deal is to lie. No, I don't mean the lies propogated by other car buying advice websites, such as hiding the trade until the last minute, getting financing ahead of time and not telling the dealer, or making up numbers that you were "quoted." I'm referring to lying about the urgency of your purchase.
Set up an email account specifically for your inquiries. Once you've identified the make and/or model that you want, start contacting everyone and their dog from the dealers to the manufacturers to the third party websites such as Edmunds and Automotive. When prompted about time-frame on making a purchase, check the box for "Now."
Why? The simple fact is that people who are in the market today are the ones that get the most attention. They are the ones that can put money in everyone's pocket. They are forces to be reckoned with and demand attention.
After this is established, it's time to switch gears and wait. You should receive a ton of responses. Stress the fact that you are looking for the absolute best deal. Be polite in your responses, keep in contact regularly, and let them know that you can pull the trigger at any moment.
The deals will roll in. Compare them with each other. Research them on the Internet. Then, you wait again. What are you waiting for? You want the best deal, right? When the best deal arrives, EVERYONE you've contacted will let you know in unison.
In 2006, Ford was really pushing their low interest rates. It wasn't making a dent because almost everyone had low interest rates available at the time. So, they announced very abruptly that they were offering 0% for 72 months on most makes and models. This sent a ripple effect through the industry. In a week, I received contacts from everyone I'd been in contact with: several dealers, Ford, Lincoln, and Mercury, three 3rd party websites, and even a classified website. This resounding proclamation told me what I needed to know: this was the real deal.
In conclusion, don't lie to car dealers just because you think they are lying to you. BUT, it's acceptable to feign your interest to get on the lists that will let you know that the real "best time to buy is now!"
Car Buying Tips
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