"LJ909" (lj909)
01/31/2015 at 20:18 • Filed to: None
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"LJ909" (lj909)
01/31/2015 at 20:18 • Filed to: None | 1
| 6 |
"I'm calling about your 2001 Honda S2000 I saw for sale on Autotrader." " Yes we still have it. What would you like to know about it?" "Is there a reason its advertised for 11994 when it has over 133 thousand miles and its only worth about 8500?" "Uh... I cant answer that. Let me get my manager."
As my car buying search continues, I've had dozens of conversations with dealerships like this or to the same effect. Being a former salesmen myself, I still hate the annoying problem with these small private dealerships: cash advertised prices. The example I gave above is how an actual conversation went I had with a dealer earlier.
Usually most private dealerships post online the prices of their cars (like everyone else does). But the difference is between a name brand dealer and a private one is that usually, the prices posted are cash only. Now some, and I do mean SOME, dealers will have a disclaimer stating that the posted price is cash only. Most others don't however, and people get lured in by the low price that they saw. Hell even the dealers with the disclaimers have it in small print. The ones that don't have a disclaimer wont even mention it until your signing the finance documents. "Wait, I thought you said that the Element was 7995? Why does it say here after everything its almost 10 grand?" "Oh the 7995 was the cash price". I use KBB.com regularly and it shows me just how much these dealers use this sale tactic to over price a lot of cars that are on sale on the net.
On top of all that, the cash prices usually mean that the actual price of the car is 1-2 grand higher. So why isn't anything being done about this? Beats me. But I would like to see something done about it. I'm sure there's some loophole in some law somewhere that states that the price is a form of advertising so they can do with it how they please. But still, why isn't something being done? So when your on Autotrader and you see that 2007 Subaru WRX STi for 11995 at Quality Motors Inc., DOUBLE CHECK ON THAT PRICE.
jkm7680
> LJ909
01/31/2015 at 20:27 |
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Hate it when that stuff happens. It's either an excessively high price for a car not worth that much or an "accidental" price to reel you in.
dogisbadob
> LJ909
01/31/2015 at 20:41 |
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I also hate when they say "price includes $2000 down" or something.
Why not just advertise the actual price?
If you see any of that shit on Craigslist, please flag it!
WhiskeyGolf
> LJ909
01/31/2015 at 21:17 |
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How do you guys actually determine that a dealer like this is overcharging? Every dealer marks up from blue book or whatever, that's their profit, so it's pretty difficult to suggest they sell at that significantly lower price.
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LJ909
> WhiskeyGolf
01/31/2015 at 23:05 |
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That's true. But there's a difference between making a profit and gouging. On top of that who wants word of mouth business that your charging thousands more then Kelly Blue Book for a car? That alone can drive down profits.
theRealRealMikeyG
> LJ909
02/01/2015 at 00:01 |
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most of those dealers are selling to people with bad credit. buy here pay here or use my BIL financing option where i guarantee you'll get financing.
they don't care about the average joe looking for a deal.
*BIL=Brother in Law financing at 19-26% interest depending on state maximums
superdave847
> LJ909
02/01/2015 at 08:47 |
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This subject is one of the first cases you read in law school, if the advertisement does not have all the definite terms (price, subject, length of time for contract, quantity) it is not a contractual offer, but instead an "invitation to come and do business."
So the dealer can always have a different price for cash versus financing, mainly because a cash sale is easier for the dealer (no fear of repossession for a cash sale).