Dealership Traps to Avoid

Buying a car can be a fun process. Car buyers get to think about the make and model of their ideal vehicle, select a color, consider swanky options such as leather seating or a sunroof, and envision driving off the lot while breathing in "new car smell." Of course, it's not always quite this dreamy. Sometimes, auto dealerships interrupt the process and instead make it a bit of a nightmare. Consumers, whether they're buying a new or used car, need to be prepared to spot and stay away from common dealership traps. Whether you're working with a sneaky salesperson or simply a dishonest company, it's your responsibility to walk away if the deal doesn't sound good.

Here are some common dealership tricks you should avoid when buying a new or used vehicle:

• "We can only give you this amount for your trade-in value. Your car just isn't worth it." One of the best ways for dealerships to ensure they're getting the best price for their vehicles is by pushing the price down on your trade-in vehicle. A dealership will tend to negotiate with you on the price of the car you're purchasing, but will only provide you with bare-minimum trade-in value. To combat this, you should do two things: First, find out the "blue book" value of your trade in. Remember that a dealership is likely to pay less than someone on the private market, so don't get your hopes too high. Walk into the dealership with a set value of what your car is actually worth. Second, don't even discuss your trade-in value until you have negotiated and set the price of your purchase vehicle. Many consumers avoid the trade-in concept altogether and sell their old cars on the private market. Make sure you get what your car is worth - not simply what the dealership wants to give you.
• "You don't qualify for our low-interest rate program, but we can offer you a loan at a higher rate." Before you start shopping for your car, make sure you take an analysis of your credit record. For approximately $10 or $15, you can purchase a copy of your credit report. This will tell you how healthy your credit is - and will give you an idea of whether or not you're eligible for preferred loan programs. Many advertised loan programs are only available for consumers with credit scores of 750 or higher. To combat this problem, you should seek out pre-qualified auto loans prior to visiting the dealership. Many online services, can help you find an auto loan on your own.
• Bells, whistles, and everything in between: You know how the grocery store has candy, magazines and other tantalizing goodies right next to the check-out counter? Well, auto dealerships have the same thing. They're called warranties. And window tint. And plenty of other services that can add thousands to the cost of your vehicle. While some of these services and products do have value, don't let the temptation put you over your budget for purchasing a vehicle. An extended warranty might not even be necessary - how long are you really planning on owning the vehicle? And you could find window-tinting services at a local company for far less money. Resist the final sales pitch, and walk out with the car you want for the right price.