Car dealer tactics and how to handle them
Find the fee, sales move, or pressure you ran into. Each page tells you what to check and exactly what to say. If something feels off, slow down and get the numbers in writing.
Showing all 16 topics
When the deal changes on you
Yo-yo financing: dealer says the loan fell through
You took the car home. Now the dealer wants new loan terms. You don't have to accept them. Get legal help before you return the car or sign anything.
Bait and switch
The car or price in the ad is gone, and the pitch moves to a pricier car. Ask for the advertised deal in writing, or leave.
The four-square worksheet
One sheet mixes the price, trade-in, down payment, and monthly payment, so changes are easy to miss. Settle each number on its own.
Markups and add-ons
Interest rate markup
Dealers can raise your loan rate above what the lender offered, and the extra pays the dealer. Get preapproved first and compare the written APR.
Market adjustment (ADM)
A market adjustment, or ADM (additional dealer markup), is extra money on top of the sticker price (MSRP). Get an itemized out-the-door price and compare it with other dealers.
Nitrogen in tires
Regular air is already about 78% nitrogen. If nitrogen shows up as a paid add-on, ask the dealer to take the charge off.
VIN etching
Some dealers sell VIN etching as a paid add-on. Ask if it's optional, what it costs, and if your insurer gives a discount for it.
Extended warranties in your payment
Extended warranties (service contracts) can be slipped into the monthly payment. Ask for each product's price and the loan amount without them.
Pressure at the dealership
A manager takes over (the T.O.)
A new person steps in and restarts the pitch. Hold to your last written quote or offer, and compare their numbers with it.
Long waits at the dealership
Long waits wear people down. Decide when you'll leave before you go, and leave when that time comes.
Dealer won't give your keys back
If the dealer stalls when you ask for your trade-in keys, it's a serious red flag. Say clearly, “Please return my keys now. I'm done negotiating.”
Good cop, bad cop
One person acts friendly, another plays the tough boss. Whether or not it's an act, judge only the written numbers.
Can a dealer keep your deposit?
A deposit makes it harder to walk away. Before you pay, get in writing whether it's refundable and how soon you'd get it back.
Trade-in offers
Lowball trade-in offer
Get written offers for your car from other buyers before you go. Keep the trade-in separate from the car price and the loan.
Leasing
Should you put money down on a lease?
Money down lowers the monthly payment, but it's usually lost if the car is stolen or totaled. Ask what each dollar due at signing pays for.
Multiple security deposits (MSDs) on a lease
Some leasing companies let you pay extra refundable deposits to lower the payment. Check the real savings and the refund rules first.
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