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3 Sneaky Ways Car Dealerships Rip You Off and Take Your Money

Purchasing a new car can be a big deal. It’s not like you will just walk up and take the first one they present to you without a second thought. We all have different tastes, styles, and needs when looking at making such a large purchase.

Think about it, there are a couple of things in your life that you will purchase with a hefty price tag, one being a house, and the other being a car. It’s definitely not a purchase to take lightly, or to walk into blindly. Most dealerships are hoping for the customer to be in the dark on the way things work, and how things are figured up in the sale.

Like any trade, they have their tricks to make the most profit for themselves without a second thought about how they may or may not be ripping you, the customer, off.

I’m sure you’re wondering how they swindle you for more money than what you see on that sticker price in the window, well, you’ve come to the right place to find out the sneaky ways behind the rip offs of the dealership purchase.

The Four Square Method

First, let me introduce you to what they call the “Four Square Method”. This is where the dealer will take your information on what you have as a trade in. After that they will look at the sticker price of the car you are wanting, and they’ll talk with you about down payments and monthly payments. Doesn’t seem like a big deal right? Wrong!

Even if your trade is a halfway decent car, their job is to pick every bit of that trade you have to pieces. From the paint, to the seat cloth, to the smallest chip in the windshield.

Their goal is to get your trade for as cheap as possible, because the cheaper they get it for, the more money they make. When they make you that trade in offer, they aren’t even coming close to what that trade will actually sell for. Think of it as a bait and switch type of situation.

Have you ever wondered exactly how car dealerships make their profits? It’s actually a lot more simple than you think. Alongside the cheap trade value they’re trying to make you feel is a good deal, they’re priming you for the up sale of all sorts of warranty extras.

The “Warranty Extra’s” Angle

Keep in mind, most if not all manufacturers have their own warranties that come with a new vehicle. Yet dealerships will sit you down in financing and go over all these additional warranties, and do anything to convince you why you, the consumer, need all these warranties.

Truth be told, you don’t need a single one of them. Take for instance I took my mom to get a brand new shiny car. She was so excited, but it was overwhelming for her not knowing what she should and shouldn’t do.

When they pulled her into that office and started talking extended warranties with her, they were trying to sell her the exact same warranty that comes from the manufacturer. Why would you need two of the exact same warranties? That’s the thing, you don’t.

So where does that money go for the extended warranty you just purchased, but didn’t actually need? Into the pockets of those car dealerships, that’s where. They just got you for even more money and more profit for them.

Did you know that warranty sales are the #1 highest grossing area in a car dealership, second is the service department. If you didn’t know that, now you do.

I know what you are thinking, “That is a lot of ways to rip me off.” but take heart, there’s more.

The Hidden Fees, OH MY!

That’s right, there are actually many more ways a dealership can and will rip you off. Have you ever looked at all the documentation, and hidden fees they charge you? If you haven’t you yourself a favor and take a look, even demand to see an itemized print out of all the fees.

You’ll find things like, “Document Fees”, those aren’t actually a thing. This is made up by the dealer to charge you more. There is also another “Delivery Fee” some dealers add on, which is completely separate from the manufacturers destination charge. There should only be ONE charge for destination, nothing more. This is a dealership’s way of double dipping.

I have even seen what a dealer called the “Advertising Charge”. Keep in mind, advertising is part of owning and operating a company. Most dealerships are also given an advertising budget by the manufacturer for which they are mainly selling for. Chevrolet, Ford, Toyota, etc.

This Advertisement Charge is nothing more than another way of getting more money out of you.

Even when you walk in the door feeling confident that there is simply no way that they can pull a fast one over on you, think again. Or you’re thinking “surely they can’t take anymore of your hard earned money.” You’re wrong.

You have to be very knowledgeable and vigilant with every tiny little detail. They are trained to maximize their profits no matter the cost to you.

Next time you’re in the market for a sweet new ride, remember all these tiny details to keep an eye out for. Knowledge is power, and the dealerships can’t rip off a thoroughly educated customer.

How can you avoid these dealer fees and rip-offs?

When you find the used car that you want, you can easily finance it through FlipRide. We show you the most competitive rates from different banks so you can make the best decision for your situation.

At FlipRide we make sure the whole process is fast, easy and transparent. The seller gets paid and the buyer goes home with a sweet new ride, all from the ease of home.

Selling a car private party has always been tedious and complicated, until now.

When you buy or sell a car using FlipRide, all of these annoying little details are taken care of for you. In minutes, not days. We take care of the title transfer, sale agreement contract, get the buyer a loan, and pay the seller. See how it works and get in the express lane.