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Get it's Gas in Gear
"It is a peculiarity
of our social, educational, and economic systems that citizens
graduate from high schools, colleges, and graduate schools without
any instruction in how to purchase or service an automobile without
getting taken for a ride every time. The automobile is the most
expensive product people will buy, own, and operate over a lifetime,
yet we take little if any time or effort in educating ourselves,
our loved ones, and others in protecting our economy, consumers,
and the auto industry from the many costly tricks of the Great
American Car Deal." - R. Rand Knox
Tricks of the Great
American Car Deal
A Partial
List (There Are Many More!
Many, Many More Car Deal Tricks Awaiting You --
As Close as Your Nearest
Friendly Factory "Authorized"
Automobile Dealer.
So, Come On Down...!
Cheating in car sales and service practices runs the gamut
from the little white lies including willful and accidental misrepresentations
or omission of disclosures, shades of shiny gray areas, and the
darker tone of lies and deceit of out and out fraud and theft.
CARveat Emptor!
"Finding Reverse
in this Heap"
inCARhoots?:
Suppressing
or Buying the "Free Press:" Newspaper editors and publishers have
gotten the message - print consumer friendly car dealing stories
-- lose advertising revenues big-time. Even "On Your Side"
(On Your Back?) type of TV or radio consumer assistance programs
step gingerly around new and used car deal problems and issues
to avoid ruffling the fenders of auto industry advertisers. Are
car dealers and manufacturers inCARhoots with newspaper editors
and media publishers? Count the number and veracity and usefulness
of auto consumer friendly stories in your daily newspaper for
a year or two. Discount fluff stories used to fill up gaps between
ads. And take note of whether the stories are from national news
wire services of from editors or writers of your local papers.
- Blaming the
Consumer (Dinging
customers, usually occurs after rip-off, er., sale, eh? As in:
"you bought it, it yours, tough luck, sucker.")
-
- "System
Selling."
Check
out Remar Sutton's car buying advice books at your library or
book store. System selling is the single most effective technique
dealers use to manipulate consumers in car deals. Don't buy another
car before finding out more about "SYSTEM SELLING."
Avoid making or repeating car buying mistakes.
-
- Lemon Laundering (reselling unserviceable vehicles to
2nd buyers without disclosures,-- very sour citrus futures).
Watch out for waterlogged cars imported from the northwest, out
of state, etc., after storms ("churning damaged goods"?).
-
- Undisclosed
defects or
unrepaired damages on new (or used) cars
Beware
the bondo wizards -- as near as your local new car lot...take
a small magnet to check metal content...caution: does not work
on plastic or bondoed repairs of predelivery dings.
-
- Hidden Damage repairs on "new"
(and used) cars
-
- Removing
"Salvaged" Labels from reconstructed used cars or failing to report
or label salvaged vehicles recovered or rebuilt from totaled
wrecks
-
- Siphoning
Fuel or Removing of Bumpers or
other items between test drive and drive-off (Oh yeah, it happens!
Keep those gas receipts folks,-- makes great stories for the
grandchildren for those who are adult enough to admit to being
cheated thusly) (Is the engine an extra option item too, Mr.
Dealer man?)
-
- Removal of
Factory Installed Parts and tires and replacing with less costly parts
-
- Replacing
Warranty Items with Substandard Parts or replacement parts of less value than the original
equipment
-
- Grounding (Keeping unwary customers from "flying"
or leaving the dealership or sales area). Varies from subtle
to extreme. (Dial 911 from a cellular phone if necessary/possible)
-
- Flipping
and Turning
(rotating
customers (like tires) between several sales people to confuse
and anchor a price or deal) (Dial 911 from a cellular phone if
necessary/possible)
-
- Artificially
Shorting Supply
(to increase demand to motivate sales and keep prices high) (Even
experienced business folk fall for this one time after time),
"We don't have one in stock, but maybe we can find one...?
" Beware the "Limited Editions" demand inflation
ruse.
-
- Double Dipping (charging twice for
items and services such as "regional advertising"),
and its car deal ding cousin: "Triple dipping."
-
- Low-balling (to lure consumers back to the dealership)
-
- High-balling (to make consumers think
they are getting a great deal when they pay a little less than
the sticker or highball price)
-
- Invoice Tampering (price inflation - price gouging - unchecked
profit creep[s])
-
- Charging
for Services not Rendered (common theft)
-
- Making Unnecessary
Repairs or charging customers
for parts broken or lost by mechanic.
{As reported by "The Rep" by e-mail November 22, 1997},
(1). The
U.S DEPT OF TRANSPORTATION reported that: "40% of ALL
auto repairs are unnecessary, equaling $40 billion annually"
[Have you been serviced by your auto industry representative
lately?]. And,
(2). THE NATIONAL
ASSOCIATION OF ATTORNEY GENERAL'S AUTO REPAIR TASK FORCE reported
that: "Good [sic] mechanics will sometimes push
unnecessary car repair work because of the temptation to make
additional money" [push?]. And,
(3). The CALIFORNIA
BUREAU OF AUTOMOTIVE REPAIR reported that: "70% of automotive
repair technicians tested cannot diagnose & repair late model
vehicles 1980 & newer" [What's that 'competitive'
hourly labor rate for anyway?]}
Damaging undamaged or serviceable parts and charging for replacement costs
Curb Stoning
is selling
cars from the side of the street by used or new car dealers or
scam artists posing as a private sale. Often these curb stoned
deals hide salvaged vehicles or are used to move laundered lemons.
Curb stoned vehicle pedigrees are often unavailable or doctored.
(Rolling back mileage or selling "salvaged" vehicles
from the curbside posing as a private sale vs. dealer sale).
It has been reported that as many as half of all vehicles advertised
in the classified sections of newspapers include one or another
form of curb stoning. CARveat Emptor. Obtain a title search and
contact former owners for verification of repairs, condition
and mileage of the vehicle.
Price Gouging and deal (customer) milking (in all its
odious forms), mooolaa...
Unchecked
"Profit Creep"
in manufacturer's invoices
Selling Extended
Warranty coverage overlapping the manufacturer's warranty period (not bad if you can get it?)
Selling Unneeded
or Redundant Undercoating or
rust-proofing at huge profit margins (deal or customer milking)
Adding Already
Included "Regional Advertising" costs twice or more (double dipping)
Bait and Switch or lure low (low-balling)
and hard sell up (yup, old trick still works like a charm...)
"Trolling for suckers..."
Guilt Manipulation
Making
consumers feel responsible or guilty for dealer errors or omissions
which should have been disclosed is a common dealer trick to
get consumers out of their faces and off their lot. One method
of guilt manipulation is referring to legitimate consumer complaints
or concerns as "consumer remorse." Consumer remorse
exists, but undisclosed defects and hidden damage repairs or
false representations should never be confused with consumer
remorse. Consumer remorse is a legitimate and natural response
for having paid too much for personal transportation, or for
having made a mistake in purchasing the wrong vehicle based on
a 10 minute test drive or under the pressure of the hard-sell.
Do not permit dealers to guilt-trip you into believing that the
sham factor in car deals is consumer remorse. Do not be guilt
tripped or "consumer remorsed" into accepting sham
deal or service practices.
Creating the
Illusion of Equality,
friendliness, cooperation and openness in the sales room. Dealers take pride among
themselves in industry trade journals in donating excessive profits
to charities--$100,000 here and $100,000 there. One way of milking
deals (er, consumers. Moooo!) apparently is to provide round
tables (Recall how the Viet Cong demanded round tables at the
Paris Peace Talks in late 1960s and early 1970s?) which psychologically
represents , equality, togetherness and non-confrontation. Tell
the dealer you appreciate his or her charity, but that you would
like to make a personal gift to your preferred charity instead
of laundering it through the auto industry. Deduct your charitable
gift from the car deal, and spare the dealer this added hassle.
Light, airy and open sales areas (ambience?) are also a way of
exerting subtle "public" pressure on consumers to settle
early or for too much or to not be confrontational. Dealers consult
expensive consultants (value priced of course) to provide the
sights, sounds and smells that are known to work best on the
majority of consumers in milking excessive profits so they can
boast about how much money (taken from consumers,-- take a deep
bow America) they donate to community charities for the corporate
benefits of tax deductions.
Avoid paying too much for car deals, leases and service and begin
bragging about how much money you really saved on your car deal,
and give to a charity of your choice, rather than to a charity
of the dealer's choice. Beware the well constructed and contrived
illusion of cooperation manufactured by dealers to lull consumers
into paying too much or taking their eyes of the car deal ball:
the best value for the lowest price.
Lease Buy-out
or Payoff Packing Inflating the lease payoff price. Ford Motors is
being investigated by 22 states for this customer service trick.
Some additional
thinking about dealing for automobiles and car dealing:
Car Deal Coping
Tricks
(Don't Have A CAR, Man! and Save $450,000 on merely average
auto ownership and operation costs over a lifetime) (Also See
Tricks
for Dealing With The Dealer)
Dealing for
a car is a confrontational contact sport. Work out and get in shape for the ordeal.
Get used to it, and sharpen your car dealing skills. Low-ball
the hell out of the dealer, like dealers do to consumers on trade-ins,
and like they highball consumers on new and used car sales and
lease prices. Dealers typically inflate the prices of new and
used cars 30% or more, so consumers should consider shifting
the dealer's ding factor into reverse and low-balling initial
offers by an equivalent amount or more. Give the dealer the square
table treatment. Or better yet, find an acceptable alternative
to the private automobile for personal transportation, and laugh
all the way to the laughing bank.
Another way of
feigning legitimacy or credibility in the auto industry is for
newspapers which derive a substantive amount of advertising revenues
from automobile industry advertisements and auto classifieds
ads, to publish a list of "Top 10 Reasons" to buy from
local dealerships or factory authorized dealers.
- One such recent
listing in the San Francisco Chronicle and Examiner Classifieds
stated that, 'Dealers must comply with all federal, state and
local laws, as well as with all standards established by the
vehicle manufacturer. If dealers fail to so so, they put their
significant investment at risk.'
-
- Under ideal
situations, perhaps! However, consumers should check out Time
Magazine, July 25, 1995, and Dealer Business, November
1995, where industry insiders blame the manufacturers in
Detroit for sleazy sales and service practices by dealers, (we
wish we were making this up) essentially acknowledging and excusing
legal and illegal sales and serve rip-offs. Competition causes
cheating is the message these attitudes communicate to the industry
and the public. The industry is acknowledging that it is not
capable or willing to regulate or police itself in its own interest
or in the interest of the public health and welfare. When it
comes to paying the overhead, many dealers have shown a willingness
to shave the truth, skirt the laws (where they exist at all)
and ding customers. And, all too often, because of tenacious
industry lobbying, the laws regulating the auto industry are
soft and favor the industry over the consumer. Who owns the marketplace?
-
- We have received
several messages from people reporting that they have been leased
vehicles they intended to buy, without being told they were actually
being "sold" leased vehicles. Time and again the manufacturers
offered no assistance with questionable dealer sales practices,
telling customers that it was a dealer issue and the manufacturer
could do nothing about the matter. Legal? Perhaps, until a new
federal law goes into effect in October (oh, what's the hurry)
regarding lease deal disclosures, but this anti-consumer behavior
and the many other legal and illegal tricks of the Great American
Car Deal flies in the face of another one of the "Top 10
Reasons", which stated that, 'Dealers are committed to the
community, employing skilled professionals, generating tax revenues
and participating in civic, cultural and charitable activities.
They value relationships with customers and a variety of businesses
to build your trust and your loyalty.'
-
- Selling lease
agreements disguised as sales agreements (just one of hundreds
of car deal tricks) which has occurred and continues to happen
around the country hardly seems to reflect commitments to legitimate
consumer service values. (The argument that we must cheat you
to stay in business to serve you is wholly incredible) Neither
does the hundreds of other car deal and service tricks which
are employed by this industry to rip-off consumers.
-
- Its nice however,
to hear that the industry is donating some of its tax deductible
profits to charitable causes., although actual figures are never
stated. Having overcharged consumers, this would seem to be the
least the industry might do -- to take advantage of the charitable
tax deduction. However, consumers (many individuals and families)
could put this money to equally or better personal, social and
environmental uses and causes had they not paid for over-priced
products and services or otherwise been taken advantage of through
the use of unfair, manipulative and fraudulent sales and service
practices.
-
- No doubt there
are good and professional people at work in the auto industry.
We suggest that this is as good a reason as any for cleaning
up and degreasing the auto sales and service industry, including
the auto-body subdivision. Invite the auto industry to get behind
the Fair Car Sales and Service Practices Act legislation at state
and federal levels.
-
- The first item
on the above noted "Top 10 Reasons"... included Pricing;
stating that, 'New car dealers buy direct from the manufacturers.
This eliminates the mark-up you often get from middlemen.' Huh?
Dealers are middlemen. They prevent consumers from buying directly
from the manufacturers. In some cases dealers actually buy directly
from a manufacturer's regional distributor, rather than directly
from the manufacturer, too. So be careful to be critical of objective
advertising in local or regional newspapers...as they are often
industry and profit driven.
-
Automobile
Industrial Complex: inCARhoots...?
If the
auto dealer or manufacturer does not get you, the bank or loan
agent just may. CBS's 60 Minutes (January 12, 1997) reported
that TrustMark Bank of Mississippi lost a jury case in
which it as charged that the bank took out expensive replacement
loan repayment insurance polices on vehicle deals, some of which
the customers had fallen on hard times and let the original loan
repayment lapse, but who eventually paid off the loan, and in
one case reportedly the customer had not let the loan repayment
insurance lapse at all, but the Bank was reported to have repossessed
the vehicle and sold it anyway, and the bank purchased the expensive
replacement loan repayment insurance which it billed the customer
for anyway. In this case, which the Bank says it did nothing
wrong or illegal, it was reported that the bank purchased premium
insurance coverage upon deals which some customers had let their
loan replacement insurance lapse. It was reported that the band
failed to even alert the consumers that they had purchased the
replacement loan repayment insurance until after the original
loan had been paid off, in which case the cost of the replacement
repayment insurance totaled more than the original cost of the
vehicle.
Customers should consider not purchasing loan replacement insurance.
This is typically a dealer or loan agent add-on. If the bank
or loan agency requires a loan repayment policy, consider obtaining
a loan from another bank or lender that does not inflate the
costs of auto deals and loans with unnecessary and inflationary
loan repayment polices. After all, the lien holder holds the
right to repossess the vehicle and resell it if the loan is defaulted.
In many cases the loan repayment insurance is excessively expensive
with inflationary (something for nothing) premium costs.
- Etc., Ad nauseaum
CARveat Emptor: Car buyers be very wary.
Happy motoring, wheeling and dealing -- virtually and really.
Unless you
prefer sour citrus, avoid buying lemons.
(March 2001) Chrysler
is reported to be under review for laundering lemons through
its dealers without proper disclosures. It rebought 50,000 Chrysler
Lemons (not a popular model, we understand) last year. These
lemons find themselves at dealer auctions and often do not come
with the courtesy model of a notice that the vehicles were taken
back from original consumers because they could not be repaired
under the lemon law statutes. CARveat Emptor...
(July
2001) Going
Down that Road:
Do not
trade in your used or old car when buying or leasing another
one. But if you do, check your state's contract or car deal recision
law to find out how long the dealer has to cancel the deal and
demand the car back and under what circumstances. Imagine trading
your car in, driving off, only to find out days or weeks later
that the dealer wants the car back and has already sold your
trade-in? Don't trade in used or old cars--sell them yourself
in a private sale. You'll be miles ahead.
Got Pumped? (October 1998) Just
when the free (to plunder) marketeers thought it was safe to
buy gas or breathe the air, its reported that gas station owners
were arrested for installing "smart" computer chips
in their "smart" fuel pumps which record accurate pricing
for $5.00 and $10.00 worth of gas, coincidentally the same quantities
at which "Weights and Measures" officials test gas
pump accuracy. The "smart" gas pump gimmick chips permits
gas station owners to gouge consumers up to 25% more than the
price which is reflected on the pump dollar value gauge for amounts
of purchase other than $5.00 and $10.00.
So the moral
of the story is, get your government representatives to make
the gasoline industry stop its price gouging schemes and stop
gas station owners from rigging their pumps to cheat customers,
or pay inflated auto related costs. Democratic control over the
marketplace merely represents a free society's self-esteem and
sovereignty. There is nothing in the Constitution (yet!) which
permits profiting by cheating and ripping off our friends and
families.
Then be absolutely
sure that you are not paying more than the posted dollar per
gallon. Pump $5.00 or $10.00 amounts of gasoline at a time. Pump
gasoline in $5.00 or $10.00 increments to make absolutely you
are not being pumped for fill-ups. Then go inside and pay too
much for a cup of coffee, and tell yourself what a bargain the
free market is...
(October 1998) Just when you thought it was safe to
let your children breathe the air, EPA discloses that diesel
truck motor manufacturers used "rigged" testing equipment
which showed the engines meeting EPS pollution emission standards
at tested RPMs, yet in actual use, the engines are dumping excessive
carcinogenic particulate matter into the air to the tune of millions
of tons every year. Oh, and by the way, lung and respiratory
diseases and problems are on the increase due to air pollution.
Your government has struck a deal with the engine manufacturers
and trucking industry which permits continued fouling of our
air, to the consternation of environmental protection activists.
Earth to trucking industry, "the environment and clean air
are good for business, don't foul it up." Poisoning your
consumers is not good for business.
- System Selling
is perhaps
the dealer's biggest and most profitable weapon in the not so
Great American Car Deal Sales War -- er., bag of car deal tricks.
If consumers can master the dealer's "System Selling"
tricks then they empower themselves in the tricks of the deal
and are on their way to mastering the dealer and the big automobile
deal. Don't buy, and don't let your friends, family, neighbors
and enemies buy another automobile before studying the dealer's
"System Selling" tricks that dealers school themselves
in and reward themselves for in milking customers in the Great
American Car Deal.
Check out (at your library? or book store.) "Guerrilla
Selling," by Jay Conrad Levison. Selling has become
jungle warfare between industries and dealers with consumers
caught in the cross-hairs of their cross-fire. Learn about what
dealers and sellers know about consumer habits and general sales
tricks to help avoid becoming a causality in the guerrilla sales
battle, for your economic health. Shift "Guerrilla Selling"
into reverse and become a Guerrilla Consumer ©-- ding the
dealer and the manufacturer on every deal.
- What You
Are Getting Into /
What You Are Up Against / Basic Training for Salespeople and
Marketeers: The following is a course description from the
Business & Management/Marketing Section of the UC Berkeley
Extension Course Catalog (Not that all auto sales staff are college
graduates, however they may apply general sales "closing"
techniques which can include sophisticated psychological manipulation
or tricks against customers to milk deals):
"Consumer
Buying Behavior"
x461.7 (2 semester
units in Business Administration) [Consumer manipulation?]
Knowledge about
the consumer is the necessary foundation for developing and implementing
a successful marketing plan. Skillful investigation of consumer
behavior enables you to see consumers through a microscope, improving
your understanding of everything that affects their behavior
[Remember the old days when consumers were human beings to
be respected rather than objects to be plumbed and exploited
for fun and profit...]
This course covers
theories and methods for analyzing consumer behavior as the basis
for developing a marketing plan. You examine both internal factors
(beliefs, attitudes, perceptions, emotions) and external factors
(class, peer groups, family structure [family values?] , culture).
Through lecture and discussion, the instructor identifies theories
about the significance of factors influencing consumer buying
behaviors. In case studies, you use theories as a basis for developing
and applying marketing strategies.
See similar courses
variously titled under: Psychology of Buying, etc., at your local
University or College Extension Programs.
Are you considering buying or leasing a VW or other new or
used car? Be Very Wary! It has been reported about industry
insiders that they have said that due to an overly competitivized
marketplace, profiting in automobile sales is extremely difficult
without the "hard-sell." (Well, that explains it?)
Some dealers excuse (when not denying it, apparently) unfair
and manipulative sales and service practices on an overly competitive
marketplace, placing blame on the manufacturers for saturating
the marketplace with dealers and car retailers.
- Value Priced?
For whom? Auto
manufacturers using value pricing schemes are posting record
profits. Don't buy it. Negotiate value priced deals too. Merely
calculate a fair mfr. and dlr. profit and make your offer and
walk until the dealer talks. Try not to get sucked into paying
too much, even on so called value priced vehicle. The consumer's
value priced vehicle is one priced somewhere between what the
dealer and manufacturer want for it and what it actually costs
to make and ship. Don't pay too much.
Even experienced
car buyers may not be aware they are being taken or have been
taken for the classic car deal ride or have been or are being dinged on
tricky new car sales and lease deals. (Which brings up the existential
question, have you been cheated if you don't know it, or if you
don't care? What's the sound of a car dealer cheating another
customer? Kaching, kaching!). Although there are reasonable and
honest dealers and service shops in the marketplace (well OK,
maybe), there are potentially many "tricks of the trade"
awaiting experienced and novice new and used car buyers,-- enough
so that consumers are well advised to be Very Wary of costly
unfair, manipulative and fraudulent car sales and service practices
when making purchasing decisions, regardless of how honest, friendly
or fair the dealer or sales person appears to be. Even otherwise
potentially honest people make mistakes or miss important details
or facts, especially when dinner and a new pair of Guccis are
in the balance sheet. Trust is a major factor in consumer purchases,
especially expensive purchases such as car deals or leases. There
is no proof-positive way of identifying the trustworthy from
the untrustworthy or potentially unscrupulous dealer or salesperson
(generally they look human, dress well, and smile warmly, friendly
and nicely) in car sales and service except by risky and potentially
expensive trial and error. Many new car buyers have discovered
after the purchase (the sale?) that they have misplaced their
trust. However, consumers may increase their chances of avoiding
sour car deals and product quality problems by understanding
some of the tricks of the trade, dynamics of the deal, and learning
how to select personal transportation within personal budgets,
calculate and budget the full cost of vehicle ownership, and
negotiate price confidently and effectively.
- Negotiate
the dealer's and manufacturer's profit on all deals, because
there is no guarantee that even if you pay more that the vehicle
will not end up being an expensive and frustrating lemon, or
that hidden and undisclosed damages, defects or repairs will
not show up after a few months of ownership before the shine
and the "happy sticker" wears off. And even if the dealer
promises the customer service moon, there is no enforceable guarantee
that if a consumer pays more that the dealer will live up to
pre-sale service or other promises. The following is a partial
list of some car deal tricks to be aware of and to avoid if possible
(at all costs):
"No bumper rating sticker on new vehicles...? No
deal...!!!" (2.5 miles per hour bumper ratings, you call
that a bumper? This you can thank President Reagan for, as it
was under his administration that federal bumper strength rating
were reduced from 5 mph to 2.5 mph). Hell no, no bumper, no deal!
(Pick-ups and some sport utility vehicles are often sold yet
without bumpers at all and are not required to have one by law,
although they likely will be presented for test driving fitted
with bumpers. Dealers often remember the high profit margin bumper
"options" at the last minute just before placing a
pile of deal transaction forms in front of the customer for signature.
Is this mis-representation or just the industry's idea of customer
service? What are bumpers for anyway? Cheap bumpers are a way
for manufacturers to pass excessive costs downhill to consumers.
A little extra in bumper protection would save consumers from
higher insurance premiums and deductible expenditures for major
damage caused by minor impacts. Ding, ding, ding...Remember,
bumpers should only protect the vehicle from excessive damage
in minor impacts, a killing crash is usually at a very low rate
of speed of 35 mph or so and higher. So what is a 2.5 mph rated
bumper going to protect? Ding the dealer and the manufacturer
on price, quality and value, before they ding you on price, quality
and value! Negotiating the dealer's profit is only a small fraction
of the total car deal profit picture.
Negotiate
the manufacturer's profit on all new car deals first, then negotiate the dealer's
profit. Remember that the dealer is merely an expensive inconvenience--a
middleman in the car sales scheme.
Consider
these guerrilla car consumer tricks on your next or future car
deal:
- Learn all
you can about the dealer's "System Selling" techniques (Remar Sutton's, "You Don't Have
To Get Taken Every Time You Buy A Car"), and shift these
deal manipulative techniques into reverse to back up the consumer
role as service provider to the dealer in new car purchase and
lease deals
-
- Avoid buying
new models first model year out - wait for design flaws and production problems
to be found and worked out before wasting your money on another
new car mistake
-
- Negotiate
the dealer's profit on
all new car deals (ding the dealer) including value priced and
no-dicker deals
-
- Negotiate
the manufacturer's profit too
on all new car deals (ding the manufacturer) including (especially)
value priced and no-dicker deals -- firm up your offer and walk
until the dealer talks -- no ifs, and, or buts, make your offer,
leave your phone number and W.A.L.K.
-
- Charge a
consumer's profit on all purchases (negotiate a lower price). If it takes
five hours or five weeks to haggle a price, charge the dealer
for the value of your time.
-
- Obtain dealer
and manufacturer personnel personal and business credit disclosures
before dealing
(name, bank
references, credit histories, favorite charities and amounts
given, home phone and address, driver's license, make, model
and year of car, etc. Leverage the deal -- get this information
as a prerequisite to dealing
-
- Avoid time
limited deals
- any good deal should not be hurried unreasonably (beware of
the CARveat behind advertised 0% down, 0% interest deals -- you
can often do better by shopping and negotiating price between
several dealers and lending institutions). Any time a salesperson
says, OK--if you buy today, beat--feet & walk or sprout wings
and fly and don't go back. You can back out of most deals even
after signing a contract if you have not taken possession of
the vehicle, which usually means driving it off the dealer's
lot. Check you state statutes for specific laws in your area
-
- Avoid advertisement
motivated deals
(Dealer's agenda vs. consumer's agenda) Buy or lease on your
terms when you decide its time for you to do so -- under no circumstances
permit the industry to dictate the timing or pricing of the deal
-- this is the consumer's job.
-
- Avoid being
sold on any deal.
Question and be skeptical of all sales representations and advertising.
(The truth can be used to lead consumer to focus on frivolous
deal or product factors and away from the more important consumer
concerns of a deal or product.) Request and obtain documentation
of all sales representations (IN WRITING!). Carry a voice activated
recorder for back-up if possible.
-
- Obtain a
copy of the vehicle delivery, test drive and vehicle use log
from the dealer before buying or leasing any new car. Obtain the name, address and phone number
of the trucking company that transported the vehicle from the
factory to the distributor and from the distributor to the dealer.
Beware of trades between dealers as new vehicles with undisclosed
defects or hidden damage repairs may be laundered purposefully
or unwittingly from dealer to dealer by design or accident or
mistake. Incompetence in this industry costs consumers untold
millions in inflated costs. Vehicles on a transport truck or
on a dealers lot may become a target for a disgruntled customer
or random vandalism or merely be damaged by flying rock of debris
on the road. Some vehicles have been damaged in transit by acid
rain (See BMW ordered to pay consumers millions for repainting
and selling without disclosures vehicles damaged by acid rain).
Look for paint chips from pebbles flicked up by passing vehicles
from nearly drive and roadways.
-
- Obtain a
copy of the transport report/receipt from the trucking company that shipped the car
to the dealer from the manufacturer or distributor before buying.
Just get it! Did the transport company damage and repair the
vehicle in transit? Was the "ding doctor" called in
to suck out, buff up and detail the dents?
-
- Have new
cars inspected by an independent auto body repair shop and mechanic
prior to buying.
(Charge the
fees for this back to the dealer. Its not your fault that you
cannot trust that the new or used vehicle has not been damaged
or repaired with full disclosures). Remember, BMW is fighting
a four million dollar court judgment for repainting damaged new
cars without disclosures. If Sears and BMW dinged their customers
without disclosures, then who hasn't or doesn't?
-
- Remember,
while everyone talks a great game of conservative and family
values, when it comes to the Great American Car Deal, many are
too happy to pass their problems off on someone else for a profit if possible,
or certainly at the least amount of loss. CARveat Emptor!
-
- Obtain or
estimate and deduct manufacturer "value-subtracted"
costs
such as advertising,
liability litigation for negligence or poor design, congressional
lobbying and political contributions, excessive executive salaries,
golden parachutes and pensions, etc., from your final offer.
Between 3% and 5% or more is a good guesstimate. Ding, ding,
ding.
-
- Do not provide
free advertising for the dealership. Remove the dealer's monogrammed license
plate mount frames or negotiate for a generic set of plate frames
as part of the deal. Unless the dealer pays you to drive around
with his or her name and phone number on the front and back of
your car, you are providing a free service to the dealer at your
expense -- you are paying for the dealer's monogrammed license
plate frames. Set the proper assertive consumer demeanor and
demand payment for the service of advertising or have the plate
frame removed and replaced with generic or no message frames.
It is especially important to remove the large plate-sized dealer
advertising cards placed inside the plate frames until the real
license plates arrive, often weeks or months later, unless you
receive proper remuneration for your advertising service. Consider
not paying for the dealer's advertising license plate cards too.
Consider charging the manufacturer an advertising free for buying
any new car early in its release year as new cars on the road
serve as an advertising service to the manufacturer and the dealer.
-
- Determine
your deal risk or dealer ding-dong factor. This is your charge to the dealer and manufacturer
for putting up with the risk and rigmarole of dealing for something
as common as personal transportation. Deduct your ding-dong dealer
factor from your final offer too. Imposing a cost to the dealer
and manufacturer for the uncertainty of dealing for automobiles,
if economic theory holds true, should result in a better dealing
atmosphere, (but don't leave a down payment on this).
-
- Consider
lowering your insurance deductible for the first six months to a year of car ownership
for undisclosed defects or hidden damages which the dealer or
manufacturer may not honor under warranty after sale, especially
on negotiated profit deals. Your insurance should not and may
not pay for dealer responsible defects, however proving responsibility
once the vehicle is off the dealer's lot is difficult and time
and money consuming -- dealers are banking on it. Shop around
for best insurance values too.
-
- Check carefully
for razor blade thin clear-coat scratches which may have been caused on the dealer's
lot by vandals of disgruntled consumers evening up a sour deal,
or manufacturing defects. Check the top of vans for rust holes
caused by rocks tossed or kicked-up from nearby streets or sidewalks.
Check vehicles carefully for hidden damage, defects or repairs.
Very carefully. It is not unheard of that car dealer detailers
have gotten grease stains on carpets or seats when fluffing up
a disheveled "new" car.
-
- Negotiate
a thirty, sixty or ninety+ day return clause in your purchase
or lease agreement, or
obtain a similar vehicle from the dealer or manufacturer for
a thirty day trial period prior to making a final purchase decision.
This might include a one month rental fee, which could be applied
to the purchase of the vehicle if you end up buying it after
living with it for a month. A fifteen minute test drive in the
presence of commission-biased dealership sales staff is not realistic
for making such an important and spendy consumer decision. (So
this is customer service?) Don't keep repeating this stupid mistake
that dealers and manufacturers are only too happy to help you
make. An alternative may be to rent the vehicle for a week or
two to thirty days and receive a credit for the rental fee if
you purchase the car from the dealer. Negotiate this service
carefully.
-
- Consider
not signing dealer delivery checklists, and unless you accept (dummies do!)
a deal without warranty, avoid signing "AS-IS" statements
that may be purposefully or "mistakenly" placed among
the other many deal transaction forms, even for new vehicles.
Dealer delivery checklists may not accurately reflect the true
condition of the vehicle, and signing it may make having undisclosed
dealer or manufacturer responsible predelivery defects, damages
or repairs addressed by the dealer or manufacturer after the
sale more difficult.
-
- Compare total
car ownership and operating costs. If this information is not available
from the dealer and manufacturer, get it from the American Automobile
Association (AAA) or other auto club. For instance, AAA reported
that at 20,000 miles per year the 1992 Ford Escorts cost $5680
per year, 1991 Ford Taurus's cost $6780 per year, and 1991 Chevrolet
Caprices cost on average $7500 per year to purchase, own and
operate (ON AVERAGE! Your experience may vary!). Multiply these
figures over the expected duration of ownership for an estimate
of your total costs of car ownership and operation. Hell, multiply
this over your lifetime! Is it worth it? Negotiating fairer dealer
and manufacturer profits will reduce the overall total cost of
car ownership. These savings you can put to better personal,
family or social uses. Keep in mind that manufacturers employ
engineers whose responsibility is to squeeze suppliers to milk
as much profit as possible out of its products. Squeeze back.
-
- Consider
that a lifetime of car costs could rise to over $400,000 for
an average priced vehicle driven 20,000 miles a year. Imagine
the great public transit system we could have if a small fraction
of all the money we all spend on private automobiles, gas and road building
and maintenance was used instead to plan and build efficient
and reliable public transportation and frequent and timely high
speed inter-city train service...its not too late to get started
down the right road, er...track! Gasoline is not a forever proposition,
and prices will go up dramatically as the world's supply diminishes.
Plan for the big change now to avoid the impacts of the big crunch.
-
- If the facts
support your position, consider taking your claim to the court
of public opinion, if all else fails. Creative and well done signs
on vehicles (or windows) will help others become aware of your
problem with a dealer, manufacturer or vehicle. Consider sharing
your car deal experience (good or bad) with your fellow commuters
by letting them know what to avoid in their next car deal with
a particular product or dealer.
-
- Learn about
the dealers' SYSTEM SELLING techniques and adapt these strategies in giving
the dealer the dealer's treatment. Throw the dealer's System
Selling techniques into reverse and use these techniques to make
the dealer and manufacture value your consumership -- the value
of your business as a consumer. And imagine a future car deal
when the dealer is intimidated by consumers on car deals, like
most consumers now are intimidated by dealers. Pleasant though,
eh? Make 'em tremble in their shoes, but watch for undisclosed
defects and hidden damage repairs on new car purchase and lease
deals, especially negotiated dealer and manufacturer profit deals.
System Selling is one of the dealer's biggest car deal tricks.
Master this and you're free to master all of the other tricks
of the trade. CARveat Emptor!
-
- When leasing
(not advised unless you know what you're doing and what you-re
getting into) your next new car, be careful to have the dealer
quote in writing (have it notarized) the rate of interest or
the lease rate you are paying on the lease and specify in writing the credit for any trade
in or rebates and other negotiated deal credits. Many states
do not require such disclosures which are required on direct
loans, and dealers have been ripping off customers on credits
for trade-ins and rebates or other negotiated credits. Two thousand
or more auto consumers in Florida reported being leased vehicles
they though they were and intended to purchase outright. Hum,
must be more of that good old customer service the automobile
industry brags about in its advertising. Dealers have been stealing
commissions of 3% to 10% or more than the highly inflated MSRP
on many vehicles because of slippery lease agreement forms and
non-disclosures of important consumer information. CARveat Emptor.
-
- Dealers typically
inflate new and used car prices 30%, expecting to settle for
15%-25%.
The savvy guerrilla consumer shifts the dealer's tricks into
reverse and puts the peddle to the mettle. Its a consumers marketplace,
so wield the power. Give the dealer the dealer's treatment, in
reverse. Where the dealer would highball the consumer, consumers
should low-ball the hell out of the dealer. If the dealer is
highballing by 30%, consumers should low-ball by %60 or more
and negotiate up to your price. Remember car buying is a job,
not a popularity contest. You are not there to make the dealer
happy or to be the dealer's friend. The dealer's job is to rip
you off. The consumer's job is to rip the dealer off. The winner
gets the Darwin Survival Award. Everything of value is negotiable.
Caution: Do not be emboldened
or lulled into a false sense of security about going out to buy
a car merely because you are aware of some of the tricks of the
car deal. Car dealers know all the tricks of the trade and consumers
are no match for dealers who have practiced their crafty ways
seven days a week for decades. Dealers are all to willing to
assist you with your next new or used car deal or lease mistake.
CARveat Emptor! Beware, well constructed and manipulated truth
is another trick dealers use to bamboozle consumers on produce
quality, price and value. Obtain information from several sources
before making expensive car deal or lease decisions.
Guerrilla
car consumers:
(1) don't buy cars, but if they do, they
(2) target and practice on a few dealers before settling in for
the kill, er., closing the trunk, er,. deal,
(3) do their homework,
(4) never pay a dime more than any vehicle is really worth,
(5) milk dealers of unincluded extras,
(6) do not permit dealers to steal fuel or other items between
test drive and drive off,
(7) share car deal tricks with all their friends, family and
associates,
(8) practice their walking and flying skills, & go carless
to save real money over a lifetime,
(9) negotiate (ding) the manufacturer profit on all car deals
including no-haggle or value priced deals,
(10) obtain copies of all deal paperwork and materials and read
them away from the dealership, and have them reviewed by an attorney
prior to signing
(11) negotiate a better manufacturer warranty
(12) negotiate a better "lemon law" manufacturer take
back clause
(14) obtain from the dealer all credit and businesses information
which is requested by the dealer of the consumer.
(15) etc.
Headlines
of the future:
'Car consumers post record profitsavings, car dealers
and manufactures benefit from trickle up effect.'
AutoBuyology
©
AutoBuyology ©
CARveat Emptor -
CAR BUYER BEWARE©
Tricks of the Great American Car Deal©
© Copyright 1995-2006, R. Rand Knox. All Rights Reserved.
e-mail: Autobuyologist
Not for use, reuse, sale, resale, or fee , in whole or part,
without written release, license, or permit from R. Rand Knox.
Safe-Car-Deal-Sex © Copyright June 1996-2003, R. Rand Knox,
© CARveat Emptor, All Rights Reserved.
Happy wheeling and dealing,
-- virtually and really...
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What's
In You?
What's
In Your
Cells?
GOT ASTHMA? Yet?
GOT WAR FOR OIL?
GOT TOXIC LOADING?
GOT GLOBAL WARMING?
GOT EXPENSIVE FOSSIL FUELS?
Have you told your auto maker, or the auto
industry to make more efficient and cleaner-air vehicles? Recently? (Flyer to copy and
post). Have you asked others if they have? It wouldn;t kill you
to do so! It may even help prevent or reduce asthma and global
warming.
Help Save Your Breath, Life, Money &
Planet (The
breath, life, money and planet you save may be your own.)
For Healthier
Air, Planet, & People: To Save Y'our Breath, Lives, Money
& Planet...
Tell Car Makers To Make
Cleaner-Air Vehicles
1
Jump Start Ford For A Cleaner-air Future
2 Jump Start Ford
Tell
NHTSA to Improve Fuel Efficiency of SUVs
Tell
Car Makers To Get Their Gas In Gear Flyer 2-up
Save Your Breath, Life, Money
& Planet Flyer 1-up
Don't
Be A Fossil Fool - Fossil Fools Day
Help
Save Your Breath, Life, Money & Planet (The breath, life,
money and planet you save may be your own.)
Car Deal
Literacy Self-help - Auto Consumer Resources:
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Support - Up-armored Car Deals
Real Conservatives Conserve (The money you save may be your own.)
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