Statistics & Facts for the auto industry
One does not have to be a genius here to understand that automotive for car industry has a bad reputation and his wrought with fraud.
Reviewing the statistics published on both state and local level clearly demonstrates that one of the leading causes of consumer complaints is automotive fraud.
This automotive fraud can take the form of warranty fraud odometer fraud consumer fraud or various other types of fraud associated with selling and marketing of vehicles. Let us not forget about bait and switch.
So the one thing these statistics certainly tell you is that you have to be careful when you are buying a car.
You need to do the best thing you can do to negotiate for yourself to be very careful. You need to examine cars closely. Any need to listen very carefully to what the sales person is telling you.Avoiding Fraud and Self Help
One of the things that in my opinion helps clients individually avoid fraud is taking very good notes, potentially recording conversations, on notice, and walking out of the dealership at least on one occasion.
If the salesman knows you are a very motivated and very educated customer, meeting educated in the automotive industry, he will have a more difficult time advantage.
If he sees either the pencil and he sees you there with the recorder that would be an excellent idea. It puts my notice.
Then actually write things down and requires the salesman to make initials on the paperwork. This is no different than when at the dealerships asked you to sign some documents.
You are free to negotiate as best suits you. If you're taking good notes making the salesman sign on his promises I'm sure you that he will steer clear of you regard to any bogus or ripoff deals.
He knows this because if he does not live up to his promises he will call them out on this.Point 1. Avoid Fraud
So tip number 1 would be to take notes and record conversations and let him know you are doing this. It does not help if he does not know your take notes recording his phone conversations. This can actually be counterproductive trust.
I would say the 2nd most important thing to do is to walk out of the dealership at least once during the negotiation process. I don't care what it is for. Tell the dealer you have to your child from daycare. Tell the dealer you're hungry. Tell the dealer you need some time to think. The one advantage that the dealership has is that you were on their turf and that they have the ability to throw you off and interrupt your thinking.
If you leave the dealership you were able to appropriately gather your thoughts think about what was said and regroup. It's like taking a half-time break. I cannot explain how important this is. Plus, you will put the salesman on the defensive which will be immediately and very obvious. When he returned to the dealership, if you return to the dealership you will have a tremendous advantage. The salesman now knows that you were in control of the negotiating process rather than the salesman being in control of the negotiating process.Point 2 to Avoid Fraud
Leave the dealership at least once if not twice during the transaction and make sure you tell yourself this before you go in to the dealership.