Here’s why you should run away, not walk, when you hear promises of a Low Price Guarantee when shopping for a new or used car at any car dealership. In this video, I’ll tell you why Low Price Guarantee is more often than not a bait and switch scam-a-roo.
“LOW PRICE GUARANTEE!”
Promises, promises!
You hear about car dealers hawking Low Price Guarantee all the time: on the radio, in the papers, on TV – car dealers making promises they can’t keep: I know it, they know it, and now you’ll know it too!
There are plenty of reputable, fine, fine car dealer folks, but Low Price Guarantee is not part of that group, and here’s why:
Sometimes when a price is too low, it is too low for a reason. It's probably too low to be true. In today’s market we have got a close to perfect demand market as we probably ever have. With the advent of the internet, pricing websites, and all the information that is out there. The reality is the pricing of cars both new and used cars is basically based on supply and demand. There is an unbelievable amount of resources to make sure that it stays in check. I'll mention a few, Edmunds.com, Kelley blue book, NADA guide book, Manhiem market report, Autotrader, Cars.com, there are all these resources out there to make sure that the prices stay in check.
So what if you see a price out there that is so significantly below any other price that you see. Do you go to check it out? Is it worth your time? Do what you feel that you have to. But buyer beware, if it is too low to be true, it probably is. The dealer is going to get you somewhere else, by undervaluing your trade or try to make it up in the finance office buy over marking the rate, or selling you products you don't need. There are other ways for the dealer to make money off of you then just the price of the car. How do you overcome that? That is everyone's fear, they go into a dealership and get ripped off. There are two ways, one Look at the reputation of the dealer. Go online look at Google Reviews, do your homework. Ask your friends and family; find a place that you want to do business with. Find a reputable dealer. In fact 95% of the dealers out there are reputable. Two, do your homework before, don't just focus only on the price of the car. Figure out the solution for you, it’s a monthly payment at the end of the day.
Make sure you understand your credit history, what interest rates are, the values of your trade in, how much cash you want to put down, the term of the loan, there are many other pieces to buying a car then just the price of the car. So, do your home work, look at the reputation of the dealer, then figure out where you want to do business.
