The The used car market is improving. While the predicted fall from rising interest rates and a shaky economy never materialized, buyers are starting to see a slightly more reasonable pre-owned price. Of course, when the market starts to tilt in favor of the buyers, the dealers will increase their level of nonsense to make more money.
When the used car market is hyperinflation, most dealers will just bid high with a “Yes, take it or leave” attitude. Now the market is slowly cooling down, forcing more dealers to sell their pre-owned units at more competitive prices, I’m seeing the proliferation of pre-pandemic tactics where used car stores try to “trick” the online pricing system. What they do is advertise a number that looks really good only to make up for it with a bunch of warnings in fine print.
A reader sent me an ad from a Kia store, This is absolutely shocking given the brand’s reputation and commitment to professional and honest dealers.
“Agent financial income is carefully factored into our low rates. Management reserves the right to charge up to 7% more for a vehicle that will be financed outside the dealership. Management reserves the right to refuse certain transactions.”
This is just another example of how being a cash buyer doesn’t give you any leverage and can lead to higher prices if you happen to be working with one of the more shady dealers.
I am buying a used Mazda 6 for a customer in New York and came across this in a car that looked suspiciously cheap. My emphasis:
The Internet prices are reflected after 1995 down. Prices are subject to change. Subject to approval of the primary lender. All prices do not include tax, title, $695 agent feecards, licenses & DMVs. Must sponsor through agency when applicable & receive same day delivery. Sorry but we can’t extend the special Internet price without a printout of the online priceand yours In-store prices may exceed our special online prices. To take advantage of our special Internet discounts, please print this page and give it to your salesperson.
Basically, the “real” price but only if you print this ad is actually $2,700+ above the advertised price and that price is subject to change at any time. Of course, like the ad before it, you’ll have to fund the agency at an interest rate that may be lower than the competition.
If you think those surcharges are a bit too much, an Infiniti dealer in Florida actually went the extra mile with these revelations.
I am willing to accept the $279 electronic filing fee, but the others add up to a total of $5,385 in additional fees in addition to the advertised price.
not like mine arguing with an Infiniti dealer in Texas trying to charge an Infiniti Certified warranty when the vehicle was advertised as an Infiniti Certified car, agents that engage in these types of tactics may not technically be violating FTC regulations when it comes to advertising. The reason is that they actually reveal what games they are playing. This is a good thing for consumers who pay attention to details, because when you see these kinds of warnings, you should probably move your business elsewhere.
Tom McParland is a contributing writer for Jalopnik and runs AutomatchConsulting.com. He has no trouble buying or renting a car. Have a car buying question? Send it to [email protected]
