How do car dealerships rip you off?

I’m about to go buy a new car from a dealership and have heard bad stories about how they manipulate you. What are some things I should know to avoid being ripped off?

Car dealerships are one of the most intimidating places to go if you’re unprepared. It’s very smart you’re asking what you should know! Follow these steps to avoid feeling ripped off by the car dealership:
  • Keep your budget in mind at all times and don’t deviate. Considering telling them less than your actual budget as you may end up with a better deal.
  • Look out for higher financing costs. If you plan on financing through the dealership, know their rates may be higher than a bank or credit union.
  • Be aware of extra add ons and extended warranties. These can be an opportunity to upsell you. Be aware of what you’re agreeing to and ensure it fits within your budget.
  • Take your time. A salesperson may try to rush you into a decision, but make sure you’ve carefully reviewed everything before agreeing to purchase a car.
  • Shop around. Look at multiple dealerships. Every dealership will offer different discounts, deals, or financing, so it’s important to explore your options.
  • Always be prepared to walk. If something seems off or you aren’t happy with the terms, it’s okay to walk away! Walking away is a great way to negotiate and can protect you from a bad deal.
By following these steps, you should find a car that meets your needs without being ripped off by a dealership.
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Will Baldwin
Answered on Oct 29, 2021

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