There has been quite a bit of advertising by both car dealers and car manufacturers lately that should be read or looked at carefully. They are advertising vehicles and including a Cash for Clunkers allowance.
One of the examples was a new car that has an MSRP for about $ 20,000.. They take the $20,000 car, and subtract $4500.00 and then any additional manufacturer rebates and advertise the car for $ 13,999. When you were considering this $20,000 car and you suddenly see it advertised for $ 13,999 you get excited…..wow a $6000 savings.
I have even seen new car dealers that have advertised on TV and in print a similar scenario as above and included a first time buyer discount or recent college graduate program from the manufacturer to make the advertised even lower.
When you see some of these too good to be true advertised specials, pay close attention. When this type of new car special is advertised in print look for an asterisk near the price, then you will see the corresponding asterisk on the bottom of the page in very small print that discloses the details of the special. All of a car dealer’s advertising is required by law to provide the special details, conditions, stipulations and a stock number or VIN# of a specific car when the price is advertised. This is to prevent any dealer from pulling any kind of “Bait and Switch Scam”.
When they advertised these specials on TV you will notice in very small print at the bottom of the screen the same type of disclosure that is required in print advertising.
The desired result is to get you into the car dealership. The new car dealers know that the hardest part of selling you a car is getting you into the showroom. Once they have you in the dealership they can open up the car sales bag of tricks and work on selling you a car from all the different angles. They know that they will sell or close approximately 20% or more of the customers that come on the car lot. So the more people that they can bring in with their advertising, the more people will end up buying a car.
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The Cash for Clunkers Official Government Website www.Cars.gov