I wrote on the subject of Internet “bait & switch” almost 3 years ago, but the problem is actually getting worse as dealers try their best to undercut each other’s prices.  Perhaps most concerning is people believing the prices they see online are credible and the gospel. 

Since a car dealer ever ran the first newspaper ad, there have been bait and switch tactics going on. Not all car dealers do this, but a good percentage of them do. By definition, a bait and switch are when a dealer publicly prices a car with no intention of selling it for that price. As newspaper advertising has been on the decline for car dealers, many are turning to the Internet to continue to mislead people.

Unfortunately, many people believe that everything on the Internet is true. Oh sure, there are laws against this sort of practice, but in most states the practice is so rampant that regulators cannot begin to enforce the laws on the books. We have seen more enforcement action from the Federal Trade Commission lately, but there is no way they can get to every dealers website, and frankly some dealers are willing to pay a fine rather than advertise ethically.You will see what appears to be a great price and the words “any and all rebates applied”.  Major red flag there. A good dealer will break out how they arrived at the price advertised. For instance, MSRP $30,988 minus $3000 factory rebate, minus $2500 dealer discount-Sale Price $25,488. Then you might see $24,488 with Ford Credit financing. That is the right way to do it.

One dealer, I ran across was pricing cars online and buried in the website, on a different page were the words “all prices plus freight charges”. REALLY? I have seen some shady stuff over the years, but this was really bad. Freight charges are built into the dealers’ cost.  In another instance, a dealer quotes a low-ball price and you see: price does not include dealer-installed options. That means they can charge you thousands of dollars over their Internet price for floor mats, window tinting, and wheel locks that cost the dealership about $200.

I have heard stories of people shopping dealers outside their area, sometimes driving for hours, even flying to an out-of-state location, only to find out they were somehow misled and cannot get the price they saw online. By now, they are tired and often have no way to get home, so the negotiation games start.  They don’t want to start over again, so they give in and pay more than they could have gotten the same car for at their local dealer.

Here is the sad thing… many times people see these fraudulent prices online and take them to a good, honest dealership who tries to explain why they cannot match the price. Of course, the good dealer looks like a bad guy and probably misses out on a sale, while the consumer falls for the bait and switch at a different dealership.

I urge you not to reward the bad dealers with your hard-earned money. At the first sign of a bait and switch, leave. Then tell your friends.

Reprinted from Car Pro.

The post Don’t Get Scammed by Car Dealers appeared first on LewRockwell.

I wrote on the subject of Internet “bait & switch” almost 3 years ago, but the problem is actually getting worse as dealers try their best to undercut each other’s prices.  Perhaps most concerning is people believing the prices they see online are credible and the gospel. 

Since a car dealer ever ran the first newspaper ad, there have been bait and switch tactics going on. Not all car dealers do this, but a good percentage of them do. By definition, a bait and switch are when a dealer publicly prices a car with no intention of selling it for that price. As newspaper advertising has been on the decline for car dealers, many are turning to the Internet to continue to mislead people.

Unfortunately, many people believe that everything on the Internet is true. Oh sure, there are laws against this sort of practice, but in most states the practice is so rampant that regulators cannot begin to enforce the laws on the books. We have seen more enforcement action from the Federal Trade Commission lately, but there is no way they can get to every dealers website, and frankly some dealers are willing to pay a fine rather than advertise ethically.You will see what appears to be a great price and the words “any and all rebates applied”.  Major red flag there. A good dealer will break out how they arrived at the price advertised. For instance, MSRP $30,988 minus $3000 factory rebate, minus $2500 dealer discount-Sale Price $25,488. Then you might see $24,488 with Ford Credit financing. That is the right way to do it.

One dealer, I ran across was pricing cars online and buried in the website, on a different page were the words “all prices plus freight charges”. REALLY? I have seen some shady stuff over the years, but this was really bad. Freight charges are built into the dealers’ cost.  In another instance, a dealer quotes a low-ball price and you see: price does not include dealer-installed options. That means they can charge you thousands of dollars over their Internet price for floor mats, window tinting, and wheel locks that cost the dealership about $200.

I have heard stories of people shopping dealers outside their area, sometimes driving for hours, even flying to an out-of-state location, only to find out they were somehow misled and cannot get the price they saw online. By now, they are tired and often have no way to get home, so the negotiation games start.  They don’t want to start over again, so they give in and pay more than they could have gotten the same car for at their local dealer.

Here is the sad thing… many times people see these fraudulent prices online and take them to a good, honest dealership who tries to explain why they cannot match the price. Of course, the good dealer looks like a bad guy and probably misses out on a sale, while the consumer falls for the bait and switch at a different dealership.

I urge you not to reward the bad dealers with your hard-earned money. At the first sign of a bait and switch, leave. Then tell your friends.

Reprinted from Car Pro.

The post Don’t Get Scammed by Car Dealers appeared first on LewRockwell.