5 Red Flags at the Auto Dealer – Money Savings Expert


dealer is someone who sells either used or brand new vehicles. This video will help you identify red flags to watch out for when purchasing a new vehicle.
Five Warning Signs You Need to Keep an Eye On for Try a drive

It is not a good sign if the dealer requests a deposit, or a credit application in order to let the buyer try the car out. For the buyer to test drive a car, neither is needed.

2. Trade-Ins

A further red flag is when the auto dealer wants to evaluate the vehicle they bought before an agreement is reached.

3. Advertising Prices and Variations

If the advertised price of the vehicle is not equal to the price of sale, this could be a sign of caution that the buyer should walk out.

4. Payment Packing

It is illegal to pay if the terms of the payment do not specify the amount, rate of interest or term but that the payment is within a certain range.

5. Reconditioning Fee

A reconditioning charge for used cars is another red flag. If auto dealers were more honest regarding pricing, they could increase their business. Do not buy from any dealer that uses unethical tactics to promote cars.

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