Skip to main content

Car Dealers Caught Overcharging Buyers

Car shopping expert reveals car sales contracts riddled with overcharges. Plus, two things almost no car shopper does…but should.

Have you ever felt deep in your gut that you may have paid too much for your latest new car? The chances are fairly good that your gut instinct was correct.

Too often car shoppers take it on the chin with the rationale that this is the way of how the business is run by car dealers today and there’s really not that much anyone can do about it.

This rationale is correct in one sense in that this is the way the business is done today by car dealers―mostly because dealerships rely on paying lobbyists to prevent consumer protection laws that are needed, from being enacted.

What is wrong about the rationale, however, is that there are two things car shoppers can do to take control of a bad deal that very few car shoppers ever do―the first of which is to just walk away.

The second thing is coming prepared with your own idealized version of what a new car sales document should look like.

Car Dealer Tricks of the Trade

In previous articles we’ve reported a number of scams that some car dealerships use to help move their inventory. Scams that typically involve MSRP window sticker scams and the good old dependable bait and switch scam―all of which cause you to spend more than you wanted to on a new car.

Car Dealers Today Caught Overcharging Customers

To help car shoppers avoid being overcharged on a new car purchase, the host of the Car Help Corner recently posted a reminder warning to car shoppers about some of the tricks of trade car dealers use with real document examples of deals where car dealers were caught overcharging customers.

The value of the video is that not only does it help shoppers identify bogus tied-in selling tricks, but it also hints at an interesting tactic car shoppers can use to guide the dealership negotiating process―creating their own idealized sales document based on MSRP and other relevant online data from the manufacturer.

In the video the host does a demonstration comparing the paperwork type car dealers show, with an idealized document that is straightforward to help shoppers recognize when something does not look right. Especially when the dealer attempts to keep a shopper focused on the calculated payments and not on the actual breakdown of charges, some of which look and sound legitimate―but are not.

The point of an idealized example document to have on hand is that it can help the consumer take control of the car deal by keeping the focus on those charges that affect the final price of a new car and less so on a distracting payment plan that should not be addressed until a final price is settled on.

Follow along with the host in this demonstration and consider applying his advice the next time you go to a dealership to either negotiate the fair deal you deserve…or just walk away until you find a dealer who is willing to treat you fairly.

Car Dealers Caught Overcharging Buyers! Don't Fall For This!


For additional articles related to dealership scams, here are a few for your consideration:

Timothy Boyer is an automotive reporter based in Cincinnati. Experienced with early car restorations, he regularly restores older vehicles with engine modifications for improved performance. Follow Tim on Twitter at @TimBoyerWrites  and Facebook for daily news and topics related to new and used cars and trucks.

COMING UP NEXT: Don’t Fall for This Potential Prius Scam by Used Car Dealers

Image source: Deposit Photos