5 Car-Buying Lessons for the Trusting and Naive

The old saying, what you don’t know can’t hurt you, is not only false, it’s dangerous. What you don’t know about buying a car, even from a car dealer you trust completely, CAN hurt you, sometimes by thousands of dollars, as was my experience. (Sunset Ford in Sunset Hills sold me a car based on a misrepresentation, then later refused to fully make good on the “mistake.”)

One would expect reputable dealerships to adhere to the National Automobile Dealers Association Code of Ethics, which reads, in part:

“At this dealership, the sales professionals will at all times ... be honest and truthful when dealing with customers.”

Sadly, it doesn’t always hold up in the real world. My purpose is to save you from having an experience similar to mine.

Lesson 1. Accept NOTHING as the Truth

Your dealership may put its best face forward, but the pervasive attitude could still be “Buyer Beware.” Here are some tactics to look out for.

• Emphatically understating the resale value of your car

My salesman claimed the trade-in value of my car was not as much as I had found earlier on Kelly Blue Book (KBB). When I later brought in my KBB screen shot, showing that I had been correct on the valuation, he morphed the story, saying KBB is only a guideline. In fact, he continued to insist that they would not be able to get more than about $16,500 for my car.

What is the truth?

Sunset listed my car at $20,185 on its used car lot.

• Adjusting the car’s KBB condition to conform to what they want the value to be

Originally, we were looking at the “Very Good” condition for my trade-in value. When I came back with proof that they had understated the worth, the dealership responded with various excuses for giving me the value they did:

a. They automatically go by KBB’s “Fair” condition.

b. They have to adjust for the cost of getting it ready to sell.

c. KBB is only a guideline.

What is the truth?

According to the KBB FAQ “What are trade-in values?”

“Trade-in Value is what consumers can expect to receive from a dealer for a trade-in vehicle assuming an accurate appraisal of condition. This value will likely be less than the Private Party Value because the reselling dealer incurs the cost of safety inspections, reconditioning and other costs of doing business.”

Consequently, my responses to the above are:

a. What?! On my first visit, we were in agreement that “Very Good” condition was the correct value range. On my second visit, they computed the figure based on “Good.”

b. The money required to get a car ready for sale is already factored into the KBB value.

c. If KBB is only a guideline, why did the dealership advertise trade-in allowances according to KBB values?

• Using Legal-Speak as Loopholes

Phrases like “up to 110 percent of KBB” do not necessarily mean what you think they do.

a. “Up to”—The phrase “up to” opens the door for lower valuations for whatever reasons the dealership feels will fly.

b. “110 percent of KBB”—Agree on a KBB condition, look it up, and multiply by 1.1, right? When I brought in the correctly configured KBB report, they decreased the car’s condition, putting it into a lower trade-in range.

Lesson 2. Women, Be Extra Diligent

If I were male, would it have made a difference? In this case, I honestly do not know. According to the Nolo legal organization, however, “Women often get ignored, patronized, or just plain ripped off at car dealerships.”

Thinking I was walking into a truly friendly environment, my initial demeanor was “Roly-Poly Grandma.” Sadly, I have since had to dredge up a past persona, “Pit Bull Marketing Executive.” I probably could have saved a lot of trouble by taking that attitude from the beginning.

Lesson 3. Do Your Homework

Before going into a dealership, research both your trade-in and the car you intend to purchase. Since KBB.com is the authority on car values, begin there.

a. Find the value of your current car by:

i. First, taking the condition quiz.

ii. Then, getting your Blue Book Value by completing the steps on KBB.

b. Get an idea for the range you can expect to pay for the car you are interested in purchasing in the Price Your Next Car section on KBB.

Consumer Reports is another very valuable resource.

a. The Car Pricing Service tells you the sticker price (MSRP), what the dealer paid, what people pay in your area on average, and the rock-bottom price you can expect to pay.

b. The Build and Buy Car Buying Service takes pricing a step further by helping you acquire savings from local dealers.

Lesson 4. TURN IN Your Homework

Bring your research reports with you when you shop for a car. This was my biggest mistake; instead, I believed that my dealer was truthful about looking up my trade-in value correctly and that I had made a mistake. If I hadn’t trusted them, events would have unfolded VERY differently.

Armed with indisputable facts, YOU will not make the same mistakes I have made. If you get any push-back about the validity of the data you present, WALK AWAY. Other dealerships have the same car.

Lesson 5. Don’t Assume Your Definition of Fair is the Same as The Dealership’s

In my mind, fairness goes hand-in-hand with truthfulness and the willingness to correct errors. Not everyone feels this way. Take copious notes, and have the salesperson validate what you have written. You may even want to bring an audio recorder to put on the desk between you and dealership personnel. If they have any issues with that, leave. I can think of no good reason an above-board seller would object.

The bottom line is, where you spend your money is YOUR choice. Be informed. Be emphatic. And take your business to a dealership that is aligned with your personal values.

Find links to the resources mentioned in this post at MyOnlineWeddingHelp.com/sunset-hills-car