When shopping for a new or preowned vehicle many people pay attention to only the vehicle price, assuming this is the only indicator of the total cost.  There are actually seven different transaction points that a dealership can manipulate to make their “deal” seem better than it really is.

1. The Purchase Price of your New Vehicle - Obviously, the price of the vehicle can be moved around at the traditional dealership. Make sure you understand how much you are actually being asked to pay for the vehicle. Will they put it in writing good for 48 hours with a manager signing it?
2. The Value of your Trade-in - Your trade is always an area that is a major spot for the dealership to wiggle the numbers. Will they write a check for the value they attach to the trade or do you have to buy a specific car to get that amount?
3. Switching you to an Alternative Vehicle - The next tactic to watch for is the vehicle you are purchasing. Is it the same vehicle you are using for comparison or have you been “switched”? Maybe a lower trim level, less equipment or with a mileage difference.
4. Rate, Term, Fees – Financial Services Office - The final terms of the deal are a huge opportunity for the majority of the dealerships. The rate or the cost of money, the length of time for the loan to repay, any additional fees, all plays a part in your actual purchase cost when buying a vehicle. Are you comfortable with the people you are dealing with?
5. The Conditions and Terms of a Lease of Traditional Finance - One more area often exploited in a dealership is conversion to a lease. Leasing itself certainly is not bad. Often it is the best solution to the financial portion of the vehicle purchase. Many times the positives, negatives and conditions of a lease are not fully disclosed and can certainly lead to unwanted repercussions. Are the people you have been working with someone you are comfortable getting financial advise from?
6. Vehicle Service Contracts - Vehicle service contracts – warranties – while often a great product for the new owner can certainly be sold for greater than their value and needlessly. Does the sales person have your best interest at heart, or his?
7. After Sale Products - After Sale products – theft deterrents, paint and interior protectants, accessories all add to the value of the new vehicle, but how much do they cost and do you want them? Is the advice offered best for you or the sales person?