There are many things that your car dealer doesn’t want you to know. The more you know about the car dealer scams and their tactics, the less profit the car dealer can make when it comes to selling you a car or truck. When you watch this video from a Canadian News Program (it is the same in the United States) you will get a better idea of how a car dealer can sell you a car and make you feel like you got a great deal. The news reporter will actually show you some numbers and calculations to prove to you how much the car dealer can profit when you do not do your homework. Some people consider this one of the car dealer scams and others, usually the car dealer, sees a happy customer that bought a car.
They have a saying in the car business “The more you make, the happier they are”. Often times this saying will ring true, because I have sold many cars that had a car dealer profit over $5,000.00 front and back (lingo) and the customer was very happy and so was I when the commission check came. The other side of the coin is that when you sell a car and make almost nothing the customer is not happy, they feel that the car dealer is still sticking to them.
Watch your typical car dealer negotiation, a classic dance with you, your salesman and some sales manage in the back of the showroom he keeps talking to on your behalf (yeah, right). Ask a car salesman and they’ll tell you their markup is actually pretty small (car scam). Canadian news clip from City News. Canada Jan 30, 2008.
If you are reading this post somewhere other than this blog the video is here.
Here is a Video from NBC News