Biggest Car Dealer Rip Offs You MUST Avoid When Ordering A Car

what are the biggest dealer rip-offs that you need to watch out for when shopping for a car that's what we're going to find out welcome to club corner where we help you the consumer master the process of car buying and car ownership there's no question buying a car from a car dealership can be an extremely stressful and overwhelming process and there are a lot of things that you need to watch out for and buying a car from a dealer can be a lot more difficult than normal thanks to this ongoing car shortage that's taken a hold of the car industry as many are aware most cars need to be factory ordered from the dealership because dealers don't have a lot of cars in stock on their lots this is caused by an ongoing shortage of computer microchips and other supply chain issues too which are making it a lot more challenging to manufacture cars at a normal pace and to the surprise of almost no one because of the severe car shortage many dealerships are taking advantage of the situation leading to a lot of consumers spending a lot more money than they normally should so how exactly do you buy a car from a dealer in this situation and what are the major scams and rip-offs that you need to watch out for when shopping for a car well make sure to stick around until the end the video because that's what we're gonna find out and if you enjoy and get value out of this video make sure to subscribe to my channel i post two videos a week always straight to the point valuable car buying advice designed to help you the consumer so let's start this video off with the first major dealer rip off that you need to watch out for when shopping for a car and that of course is excessive dealer fees and add-ons one of the major concerns that a lot of consumers have when shopping for a car is what kind of dealer fees do you need to pay for and which ones should you be avoiding at all costs now when purchasing a car from a dealership there are of course fees that are considered mandatory that everybody does need to pay of course there's the msrp of the vehicle itself and on top of that you have your freight in pdi or the delivery and destination fee which is a normal charge for a brand new car you also have a few minor fees and levies like an air conditioning tax your title and licensing or registration and the states you sometimes have a doc fee or a processing fee all of which should total under 300 and of course the final thing you need to pay on top of that is your sales tax which does vary depending on where you're located unfortunately though with the ongoing car shortage it's not uncommon to find dealerships that are charging for all kinds of extra fees and add-ons on top of the normal price some of the most common additional thieves that i often come across include anti-theft or security protection some kind of wheel and tire protection and various other types of protection packages from rust to interior or exterior paint protection and various types of administration or documentation fees too depending on which dealer you go to a lot of these additional add-ons and protection packages can add anywhere from a few hundred to a few thousand dollars to the price of the vehicle and the worst part is is that a lot of dealerships don't even give you the option of removing these fees because of the shortage of cars and the fact that consumers just don't have a lot of negotiating power a lot of dealerships automatically include a lot of these fees on the contract and if you try to negotiate them out of the deal a lot of dealers will tell you that they can't be removed and if you want to order the car you're just going to have to take it or leave it it's a real shame because before the shortage a lot of dealers would at least explain what these products were and give you the option whether to buy them or not in the business office but with the shortage a lot of dealers are now just automatically including them on the contracts and they're not even giving you the option to remove them the reality is though is that a lot of these add-ons and fees don't add any real value to you and they're just designed for additional dealer profit so if you're shopping for a car the best thing to do is to shop around and find a dealership that's not going to charge you these fees but unnecessary fees and add-ons are not the only thing that you need to watch out for when shopping for a car another major dealer rip off that you need to be aware of is called bait and switch bait and switch is when you see a car advertised for a certain price it could be online on the dealer's website or on some other website but then when you visit the dealership the real price for the vehicle ends up being a lot more than you were expecting either because the dealership is adding all kinds of additional fees or it's just not the price that you saw online sometimes you're even lucky if the car that you see advertised on the dealer website even exists in the first place a lot of these ads are just designed to lure in consumers just so the dealer can sell them a car or sell them one at a much higher price so whenever you see an ad for a really enticing looking car you have to make sure that you contact the dealership ahead of time and not only contact them to make sure that the car is available but also make sure that the price that you see online matches the real price for the car which is why you should always request a quote from the dealership by email so you know exactly what you're going to be paying before you step one foot through the door but even if you end up getting a quote from the dealership and end up paying what you think might be a fair price you could still face all kinds of additional rip-offs which brings us to the next one on the list which is dealerships that force you to finance instead of paying cash now i've been seeing this one happen more and more throughout the car shortage a lot of dealerships won't give you the option of paying cash for a car they will only sell you a car if you agree to finance the car and take out a loan now the reason why a lot of dealerships are doing this is because they basically get a kick back from the lender when they secure a car loan which means that they're going to make a lot of additional money when they finance a car but not only are dealers getting a kickback from the lenders but they can also make a lot of money on the financing itself say the lender is offering you a rate of 3.99 but then the dealer comes back to you and tells you that the best rate that they're giving you is 6.99 well the dealership can just pocket the difference of three percent in order to make more money on the deal which is why if you want to buy a car in cash a lot of dealerships are just not going to allow it because they're not going to make as much profit on the deal some dealers won't even accept your order for a car unless you agree to financing or if you really want to pay cash they're going to charge you a higher price than the normal financing price now bottom line any dealer that refuses to take your order for a car or sell you a car if you want to pay cash is being unprofessional and is not a dealer that you want to deal with which means again you need to shop around and find a dealership that's not going to play those kind of games but as bad as that is it's not as bad as the next potential dealer rip off which you might be faced with which is paying a market adjustment fee or a dealer markup now fortunately for canadians this is not a practice that's normally found across the country this is far more common in the united states where dealers will normally add market adjustment fees to the vast majority of new cars but even so you can still sometimes find dealerships that are adding markups to readily available inventory that they have on their lots this is because a lot of dealerships know that anybody who's desperate and needs a car right away and just can't afford to order a car and wait is going to take whatever the dealership has on hand which means the dealer can add a lot of additional fees and sometimes a markup to the price of the car which is why it's so important that if you need to buy a car right now you can't rush the process you need to be able to factory order a car and wait for it to arrive because any cars that the dealership has on the lot are likely going to be marked up or have all kinds of additional add-ons and fees that you shouldn't be paying for and a lot of these products are not going to be optional the dealership is going to force you to pay for them if you want to buy that particular car which is why you should not only be shopping around to find a dealership that's not going to be playing those kinds of games but you also need to be ordering your car well in advance because when you order a car in advance it's not going to be loaded up with all kinds of dealer extras but the price of the car that you're buying is not the only area where the dealership can play games with you and rip you off another area where you need to watch out for is the trade-in car if you happen to have one i see this happen all the time where a consumer goes to a dealer to buy a car and tells the dealer that they have a trade-in only to end up with a very low ball offer on their trade-in car which is way below market value now if you happen to have a trade-in car this is one piece of leverage which might give you an advantage with the dealership because a lot of dealers don't have a lot of inventory if you happen to have a car that's really desirable this is your opportunity to get a really good price for it which means that you do need to do a little bit of research using various types of online shopping tools or just using websites to find out what your car is really worth and whatever you do don't let the dealership give you a lowball offer that's way below market value you should make sure that you're not only paying a fair price for the new car that you're buying but also getting a really fair price for your trade-in car too now let's say hypothetically that you managed to pass all these different dealer hurdles you managed to buy a car for a fair price with no unnecessary dealer fees add-on products or a market adjustment fee and you also managed to get a really fair price for your trading card too well unfortunately that might not be the end your troubles you could still be faced with a dealership that's just outright lying to you about the information that you're giving you and that could lead to some major problems down the road you have to remember that a lot of dealerships are willing to tell you almost anything that you want to hear just in order to get the sale so you do need to be extremely careful with the information that you're getting and the dealership that you're dealing with say for example you talk to a few dealers all of which are telling you the car that you want to order has a waiting period of around five to six months then you have another dealership that tells you that the waiting period is only two to three months which of course means you're going to want to order the car from that dealer only what you don't know is that that dealership is not giving you accurate information the waiting period for them is going to be roughly the same as everybody else which is just going to leave you as a frustrated customer because you were basically lied to and any dealership that's not being transparent with you and is unprofessional in general could lead to other additional problems down the road too for example i've seen many consumers who've ordered a car from an unprofessional dealership and wait a few months for the car to arrive only to have the dealer contact them before the arrival date and tell them that they can no longer honor the original price that they sign for the dealer will tell the consumer that they need to add additional fees onto the contract or they need to increase the price of the vehicle because they can no longer honor the original purchase price now unfortunately any time a dealership does these types of things it can be extremely frustrating but there might not be a whole lot that you can do because the dealership knows they have the upper hand if you want to cancel the contract you're going to have to order the car all over again which means you're going to have to start the waiting period all over again too and the dealer knows realistically you're not going to cancel the contract just before the car arrives because you're not going to want to wait all over again which means they have a golden opportunity in order to sell you additional fees and products that weren't part of the original price now this of course sounds like a major scam and a major rip-off and something that you would never want to deal with but unfortunately i have seen it happen more than a few times which means that it's extremely important to not only buy a car for a fair price but also buy one from a reputable dealership one that has a really good reputation that's professional and transparent that's not gonna pull these kinds of games with you so if you encounter a dealer that has a lot of negative reviews it might not be worth the hassle of dealing with that dealership because you never know what kind of hassle they could throw at you down the road unfortunately sad to say these are only a few of the major problems that you could encounter when shopping for a car from a dealership at least in this time of shortage when dealerships ultimately have the upper hand and consumers just don't have a lot of negotiating ability it does require you as the buyer to do a lot of research beforehand not just on the car that you're planning to buy but on the dealership itself too and of course you want to approach as many different dealerships as possible to find one that's not going to charge you unnecessary fees force you to pay for add-on products or force you to pay for a market adjustment fee too so let me know what you thought of this video and if you have any suggestions for any future car videos just leave a comment below and if you enjoyed this video make sure to like and subscribe you can also check out some of my other car videos by clicking these links over here make sure to follow me on tick tock and instagram and if you need any additional car buying advice recommendations or help with getting a great deal on your next new car purchase make sure to check out carhelpcan.com thanks so much for watching and see you next time

Channel: Car Help Corner

Views: 94,855

Keywords: biggest dealer rip offs, biggest dealer mistakes, car dealer scams, car dealer rip offs, car dealership rip offs, dealership scams, dealership rip offs, car dealership red flags, how to buy a car, how to order a car, how to negotiate a car deal, how to buy a car and not get ripped off, how to buy a car and save money, how to negotiate with car dealers, how dealerships rip you off, how dealerships make money, car dealership scams, car buying mistakes

Id: lJYfxbylaiE

Length: 12min 39sec (759 seconds)

Published: Sun Sep 11 2022