5 BIGGEST Car Dealer Rip Offs That Cost You THOUSANDS || Watch Out!

These are the 5 biggest rip offs to watch for at the car dealer. We share 5 sales tactics that some car dealers use that can cost you thousands of dollars. How do car dealers rip you off and price gouge you? If you are planning to buy a car in 2024 and want to avoid buyer's remorse, make sure to watch this video.

Any views or opinions shared in the video are strictly those of the channel, and do not represent the views and opinions of OMVIC. OMVIC does not necessarily endorse the information or any products shared in the video.

00:00 Intro
00:45 Tied-Selling
03:05 Forced Financing
04:35 Bait & Switch
06:50 Hiding Incentives
08:00 Trade-In Offer

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ABOUT ME

With over a decade of experience as a professional car buyer and auto consultant, Shari Prymak has helped thousands of consumers with their car buying needs. Car Help Corner provides honest, objective, consumer advice with all aspects of car buying and car ownership. For more professional advice, check out Car Help Canada, become a member, and subscribe!

[michaelk]

Always assume that the car dealer is out to steal from you until they prove to you otherwise - good luck finding an honest one

[arvinlobo]

I had gone to 4 to 5 dealerships for new car and everyone gave a quote with extras. Some dealerships did not even bother to give me a breakdown. Finally, I found a dealer who initially included extras but told me if required, extras can be taken out. Eventually, I ended up ordering the car with MSRP and asked dealer to take out all extras.

[markrichards]

My buddy has been a Honda salesman for over 20 years now. Good guy, says he hates the way they do business now. He told me on average, $3000 mark up for products cost them $200-300. Pure consumer fraud if you ask me.

[Pccpy]

I just bought a car last week. I told the salesman not to present me any add-ons. I told the loan officer to skip all extended warranty. Read carefully and be willing to walk away if you have to or they will make you pay more then you needed to.

[pgy]

Tied selling happened at Colonial Honda, Halifax, NS in 2020, the last car I bought. When I forcefully questioned it with the manager, I got nowhere.
Nothing makes me feel dirtier than buying a new car. Sad.

[spittinvenom]

The two dealers I dealt with today looking for a small SUV were excellent, told me the final price and told me what’s included and gave me financing options and invited me for a test drive, nothing salty about my day today

[jamesn]

I love when they add on a bunch of things, then act like you’re insane for not wanting them. I go in knowing what I want with a number in my head for it. If I don’t get that, I leave.

[flpete]

This is why id rather go to my dentist than buy a new car at a dealerships. Thank U for the info.

[sophiekotomski]

What a racket. Just purchased a new vehicle and it was exhausting. The back and forth and checking every detail. I did get more for my trade because I was willing to walk away unless I did.

[trippinwithdumas]

You nail it everything. I've sold 100s of cars. I actually left bc there's it's easier on the soul

[TexasHarleyBoy]

Unscrupulous car dealers are a given. The consumer is almost guaranteed to get Stormie Danieled during the buying process. Even the one's that publicly proclaim their selling integrity.

[toddrobinson]

Get everything in writing, NEVER take anyone employed at a dealership at their “word”. Be prepared to walk away. Never go into a dealership alone. If you’re timid, take a more aggressive friend/family member. Most people carry cell phones. It’s totally legal to secretly record a conversation, as long as you’re an active participant in that conversation. If something is off, you’re not obligated to make the deal that day. Go home and sleep on it. Unlikely they’ll let you take the offer out of the dealership without making a deal. Ask for a coffee, while the sales person steps away, take pictures with your phone. This is no dirtier than the tricks they play on you. Give it back to them.

[p]

Forgot to mention that if you are gonna finance the purchase then first get it through a credit union and not through the dealership.

[Sam-ygpc]

When I was shopping for a used car I noticed quite a few ads where they put in the fine print that the advertised price is for finance only. The finance price was 9%, I complained to OMVIC and heard nothing back . What happened to the advertised price is the price you pay law?

[tylerbrown]

On the bait and switch: the dealer can put out a too-good-to-be-true ad and when you inquire on it they tell you “we only have a couple at that price and we’ve got a lot of interest, so if you want to come take a look…”

Then when you get there it turns out they “just sold the last one. But if you wanted to look at something similar while you’re here…”

[kennethlui]

I have been shopping for a new car. Most dealers put a mark up of $4000 on top of the MSRP. They said the reason was “market adjustment “. It is BS to me. The mark up is a cushion for them to negotiate. The best they can do is remove the mark up and you pay MSRP. I want price below MSRP.

[Kevin-ycu]

My brother was trying to buy car for his daughter a months ago, this one dealer for a 2020 Corolla with 167, 000 km was selling it for the same price as a 2024 model. Where do they get off asking that much for a 4 year old car, they ended up getting a brand new Kia Forte for less than any 2-4 year old used car.

[tommac]

It starts when they unlock the doors in the morning.

[kennywu]

Even 10 years old or older and have over 100 k miles on the vehicle- no haggling what so ever. So I just gave up on them.

[don-cwyz]

-Used car dealers that advertise a price but then say if you are paying cash they add on thousands of dollars. I will not even bother going to that type of used vehicle dealer.
-Ridiculous administration fees. Forget it. It does not cost that much for a dealer to do a bit of paperwork and pick up plates at the DMV.
- The "market adjustment" fees. These seem to be dropping off lately but a few dealers still try to add this onto the price. I would say just do not buy from that type of dealer. There are no shortages of new vehicles anymore.
-Now that interest rates are high and people are not buying you will see prices on used and new vehicles will drop. The prices are only starting to drop. Discounts will get larger as dealers are only supported so long on floor plan inventory by manufacturers. Inventory costs money. Vehicles are about 20% to 40% too high currently. If you are not forced to buy now don't and wait till prices drop. Consumers must realize they have the power, not the dealers. If dealers are not selling vehicles it is costing them money to hold inventory. If the deal is not in your favor walk.