December 3, 2007
Very promising, enticing, and inviting ads… These are the usual contents of a newspaper that we can see everyday. Once you read the headline, you would definitely get interested, pick up the phone and call for appointment.
Sad to say, only a few noticed the little notes printed below the headlines. These are usually conditions before you get the offer, and oftentimes, contradictory to what the heading says.
It is the trick of the newspaper dealers and advertising experts since it is their responsibility to help the advertisers make a sale thru their ad postings. They may have good intentions, but you better be careful and do try to read between the lines.
Before you get hooked by these gimmicks, it is best to take a closer look. See if any of these is familiar:
“Regardless of the amount you owe, your old car will be paid off”
Of course, this is just a come-on strategy. No one will pay you just as much, it is business still. For example, you owe $6,000 and on your new car and he old car is only worth $3,000. As the dealer boasts your old car will be paid off, it means they will add the payoff amount to the cost of your new car. The lenders will be aware that the amount they will finance is way greater than the cost of the new car. In return, they will charge a high interest rate to secure their finances.
“Limited offer, only $195 per month!”
The amount they offer may vary, but the situation is the same. Just remember, the amount you pay will always depend on the amount you put initially, simply put, your terms of payment.
There might also be a small printout below saying that you have to pay big amount for a down payment. Of course, if you have huge initial cash out, your monthly balance will be lesser. In some cases, the amount specified in the ads may depend on your credit. If you don’t have that much credit, chances are, you will still be charged a higher monthly pay.
“We’ll give you $3,000 trade whatever is the condition”
Would you believe it, the advertiser is willing to pay that big to trade with your very old car? I don’t think so. Experts have speculations that the dealers will add that amount to the price of your new car, and eventually, will take away your negotiating power once you’re hooked. To avoid this, it is best to do some research first. You have to be aware of the value of your old car.
There were also cases when the dealer would pay you a lot less than your car’s worth. They can easily make you believe that you are getting a good deal. Again, this might happen if you don’t do your homework, and just get into the deal.
“This car has below invoice price”
Again, this is ridiculous! No one would sell a car at no profit. They can easily print any invoice they want. You don’t know it anyway; you can only believe or disbelieve them. The invoice price does not necessarily mean that’s what the dealer paid for it. There is already an existing agreement between the dealer and the manufacturer, and is only between them. Usually, the manufacturer held back a percentage of the price when the dealer buys the car and paid to him once the car was sold. Depending on the car, it usually ranges between 2 and 3 percent of the Manufacturer’s Suggested Retail Price
“Year-end sale, make room for 2007”
End of the year, when cars are on sale, most people believe it is the best time to get a new car. This is partly true. That is, if you would keep it for six years or more, and believes it will have very low value by the time you decide to sell it.
On the other hand, if you normally change cars every two or three years, this may not be a good idea. It means the car you will buy is already one year old. By the next year, your brand new car will already be considered an older model and the value will have already depreciated.
Posted by andry under News |
