Price Packing
This is a tactic a dealer uses to increase the price and/or payments to include either aftermarket items or pre delivery services.
As an example the price of the car is $25,000. The salesman or the finance manager (smooth talking guy you see after the salesman) then tells you that included in the price is a warranty or some other product or service such as an appearance package or etching. You think that you really got a bargain and the salesman is a nice guy. Guess again. The final price or payment includes (has packed into) the product or service.
In this case this case the price was really $23,500 with a warranty for $1,000 and etching for $500, hence the $25,000 purchase price. They never gave you the chance to decline the products because you were never aware that you were actually purchasing them BUT you did know that you were getting them. Usually there would be product information but the price box would be left blank leading you to believe it was FREE. If the salesman says it’s free you are probably getting defrauded. Sometimes it’s really severe and the dealer does not disclose that you are purchasing the product or the payment is just bumped up (referred to as buying air). Dealers have actually been indicted for this conduct. I litigated a case where the finance managers were getting a huge commission on these products and were packing them into many of the deals to maximize their own profit. They got caught and got fired but it was too late for the customers.
Car salesmen have many ways of deceiving consumers and this is just but one method. It’s hard to imagine but you should bring a lawyer with you when you buy a car.
As an example the price of the car is $25,000. The salesman or the finance manager (smooth talking guy you see after the salesman) then tells you that included in the price is a warranty or some other product or service such as an appearance package or etching. You think that you really got a bargain and the salesman is a nice guy. Guess again. The final price or payment includes (has packed into) the product or service.
In this case this case the price was really $23,500 with a warranty for $1,000 and etching for $500, hence the $25,000 purchase price. They never gave you the chance to decline the products because you were never aware that you were actually purchasing them BUT you did know that you were getting them. Usually there would be product information but the price box would be left blank leading you to believe it was FREE. If the salesman says it’s free you are probably getting defrauded. Sometimes it’s really severe and the dealer does not disclose that you are purchasing the product or the payment is just bumped up (referred to as buying air). Dealers have actually been indicted for this conduct. I litigated a case where the finance managers were getting a huge commission on these products and were packing them into many of the deals to maximize their own profit. They got caught and got fired but it was too late for the customers.
Car salesmen have many ways of deceiving consumers and this is just but one method. It’s hard to imagine but you should bring a lawyer with you when you buy a car.