Why do car dealers rip people off?

When dealers sense hesitation, they’ll sometimes try to force buyers off the fence by telling them that the deal they offered is only good for that day, or that another buyer is interested in the same car. This is their attempt to force you into an emotion-based decision.

Do dealerships keep service records?

If the vehicle was serviced by an official manufacturer or franchised dealership, records are maintained in their computer system. It is often easy enough to obtain them from the dealership directly. Buyers should be aware that problems can, and often do, arise when a vehicle has no service history.

What happens when you return a used car to a dealership?

When returned, the dealership’s finance officer has a different loan at a higher interest rate or larger down payment. This scam is most commonly used against people with bad credit scores because they may not have other options for paying for the car.

What is an extended warranty on a new car?

Extended warranties only take effect after the basic warranty, also called the factory warranty, expires. They’re backed by a third-party underwriter for coverage you may never need. And even if you do, the money you save on the repairs probably won’t cover the cost of the warranty, according to Consumer Reports.

Are dealer options on a car worth it?

They’re pure profit for the dealer and of little value to you. Fabric protection and VIN etching where the vehicle identification number are scratched into the windshield are other unnecessary options. Some dealer options are added automatically and you’ll only notice them on the sales invoice at closing.

What happens when a car loan falls through at a dealer?

Dealers can also cash in on delivery costs. Some allow potential buyers to leave with a new car before the financing has been finalized. The dealer calls a few days later, telling them the loan has fallen through and the car needs to be returned or it will be repossessed.