Buying a motor vehicle in 2022 already presents significant challenges with higher prices and limited stock. However, that does not prevent auto dealerships from continuing to hype their latest and greatest deals, encouraging potential customers to avoid the competition and buy from them.
For consumers looking to purchase a car or truck, the literal devil is in the details.
Common dealership strategies
Attracting customers to show up to their showrooms is sometimes a bait and switch scenario. Most of their prospective customers simply can’t afford to pay in full. Dealers know this all too well and advertise financing options that promise financing with no money at the time of purchase. While that may seem to be a smart and affordable price initially, over time, it costs the consumer more than the “asking price.”
Another common lure is the “no money up front” and “zero percent financing.” In the end, many customers end up paying beyond the purchase price. Reviewing loan documents with attention to detail will help uncover the “capitalized cost,” also known as the sum total of all the payments over time.
Dealerships are also fond of targeting people with poor or no credit. Their strategy is to put the customer in a longer payment period with significantly higher interest rates. The fine print of a contract may also reveal penalty fees for early repayment.
“Buyer beware” may be an oft-used phrase. However, it is paramount for those interested in purchasing a car. Consumers taking a more thorough approach to buy a motor vehicle ensures they get what they pay for. For many without the luxury of telecommuting, having a reliable car or truck keeps them at their place of employment, earning the money necessary to pay for a vehicle.