Used Cars

[rayelias]

Every once in a while, one of the local dealerships offers the "$5,000 for your trade - Push, Pull or Carry it in" deal.

My initial thought is they jack up the price on the new car.

Anyone know for sure if this is a legit deal, or is it a smarmy, sleazy car dealer trick?

While we're at it - anyone want to share other "car dealer" tricks to watch out for?

 

[tmt martins]

I have many Uncles in the car business and they don't even trust their own salesman.

Yes this is legit but you pay on one end or the other .They will give you the $5000 for the trade but charge you sticker price for the car .Or give you nothing for the trade and $5000 off the sticker of the car.


The biggest money maker for dealers are Extended warrenties ( add-ons not the Manf.) & and undercoating All cars now a days have coatings on all the parts and the undercoation is just a spray that looks like it's doing something.

Shop around and have as much info going in as possible.

 

[dnoyes]

Maybe I can help. I've been in the car business for 22 years
Your question about the "push pull or drag it in" offer from local dealers is not set up to do anything other then get you financed. It shows the bank a good down payment for people that don't have the cash at the time. Dealers don't think that thousands of people are going to rush in with old junkers because they ran this type of deal they are trying to reach the few that have come into the market in the last several days. Example, you just got the news from your mechanic that it will cost you $2000 to fix the engine in your car. Or you were one of those people sitting on the side of the freeway last night with your hood up (count them next time) these are people entering the market every single day.
What are you paying for the car if you do it this way? The same as if you didn't have a trade BUT this way the bank is getting the down payment they need to fund the loan.
When is this a bad idea? when you have a trade that is worth more than a couple hundred bucks. Let's say your car is worth $2500 (ACV) you would want to forget the above deal and just start at invoice less trade and let the dealer keep the holdback. You would owe less on the car this way.
What does the dealer make on this car deal? about 3% of the sale price plus any back end money (a kick back from the bank that we sold the loan to) or you could look at it this way, for the five or so years you own your car the dealer made less than Disney does on your one week vacation
Hope this helped.

 

[stevenpensacola]

www.carbuyingtips.com

excellent site, with explanations of all the games car dealers try to play on the unsuspecting.

Top 10 car dealer scams:

http://www.carbuyingtips.com/scams.htm