Knowing the tell tale signs that you are about to get ripped off can save you thousands of dollars. Here are 5 ways that you can tell that you are about to get taken.
Let’s face it; no one likes to be ripped off. There is no
worse feeling than making a purchase, only to find out that you paid way too
much. Meanwhile, the seller is laughing all the way to the bank. Each year,
thousands of people fall victim to fast talking used car salesmen. They can be
quite convincing and make you feel as if you received a great deal. After
signing up and thinking about it, you soon realize that you have just been
taken. Don’t become part of this statistic. Learn how to recognize the signals
that a used car dealer is trying to rip you off.
Before I begin, I would like to make it clear that not all
used car dealers are looking to rip you off. There are certainly honest car
salesmen than dishonest. Just because a dealer is in the business to make a
profit does not mean that they are trying to rip you off. While their prices
may be a bit higher than what you would find on Craigslist Cars, keep in mind
that they have expenses such as payroll, a mortgage, inventory expenses and several
others. In order to cover these expenses and realize a profit, they must buy
low and sell high. That being said, here are a few tell-tale signs that you are
about to pay way too much for that used car.
Your salesman is pushing you to use
his financing. There is no doubt that there are several dealers who
are in the business of finance, not selling cars. They are not looking to
earn high profits from selling their cars; they make their money by
financing you and charging outrageous interest rates. You put $1,000 down
and give them half of your paycheck each week. In the end, they sell you a
$1,500 car and collect $4,000 plus over the course of several years.
The dealer does not offer a warranty. The
worst way possible to get ripped off is to purchase a vehicle without a
warranty. One week later, the engine locks up and you are stuck making a
payment each month for a car that can not be driven. When buying a used
car, be sure that it comes with some sort of a warranty, even if it is
only 30 days.
You are being forced into a car. Is
your car salesman a fast talker and is ready to sign you up within the
first 10 minutes that you meet him? Salesmen of course want to get their
commission and move on to the next person. If you salesman is being pushy
and demands that you purchase a car, simply walk away. There are plenty
competitors that will gladly accept your business.
You are being asked a lot of personal
questions. One thing that salesmen like to do is understand their client’s
needs so that they can match them up with a vehicle. Perhaps your salesman
is extremely interested in they type of work that you do. Maybe they want
to know what area or neighborhood you live in. What they are really doing
is trying to figure out how much money they can get out of you.
Price points seem out of line. Before
going out on a shopping venture, take a look around and see what the
vehicle that you are interested in sells for in the current market. If you
pull up to a dealer and their prices seem out of line, odds are that they
built in a bit of wiggle room to make you feel as if you get a “Good
deal.”
