In part one of Favorite Scams That Car Dealers Use On Customers we unearthed several tactics that car salespeople use on their customers in order to squeeze more money and profits out of them. We found out that some dishonest dealers try offering you a ridiculously low price for your trade in order to maximize their resale value at the car dealership.

The second one is trying to get its customers to strike a deal based upon the MSRP (manufacturer’s suggested retail price) instead of the factory invoice or dealer’s invoice, which is the true value of the car being sold. If you know how much the dealer paid for the car, you can haggle over the price more effectively.

A tip is to just walk away if you find that the car dealer is trying one of these tactics on you. It demonstrates that the dealer doesn’t have your best interests in mind and is only concerned with making a large profit. These dealers may seem to care about you when you are in the car lot, but if you purchase from them, it may amaze you at how quickly they forget about you once you drive the car away. Here are some other things to watch out for.

Doc Fee Scam

In the event that you get a good deal from a less than honest car dealer, beware because they may try to make up their “loss” by sticking it to you during the paperwork session when you are about to sign and finance the car. You’ll have to be very diligent in inspecting the paperwork for extra charges that don’t do a thing for you. A common one is something called the “doc fee” or document fee.

This may cost anywhere from $30 to close to a hundred dollars, but this fee is not only unnecessary, it is a scam. The doc fee is a charge for filling out your paperwork; something that is already part of the buying process. Why would you pay a fee to the car dealer to fill out the necessary forms to purchase a car?  The answer to this question is you shouldn’t. If you see a doc fee or any other suspicious fees in the final paperwork, refuse to buy the car unless these are removed. There are other dealers who would love to have your business.

Extra Protection Services

Sometimes car dealers will try to sell you unneeded protection services that covers the car’s tires, brakes, rustproofing, etc. You need to understand what your car warranty and insurance company covers because the extra protection the car dealer is trying to sell you is probably already covered by these policies. And anything that isn't is probably a questionable service.

Another thing to watch out for is “deluxe” anything they offer you. Floor mats are a big money maker for car dealers, especially vanity mats that have the car’s insignia or brand name on them. They are not any different than the $20 mats that you can buy at your local auto store or online store, but the dealership will hit you with a expensive price for deluxe car mats and mark them way up for a huge profit.

Source: Business Insider

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