It has now been 3-4 hours, you have negotiated and initialed the deal, you are mentally, physically and emotional drained… now all you have to do is sign a few papers and you are out of the dealership with your new vehicle. NOT!
Buyer Tip: The Finance Business Office is just the next step in selling process. A significant portion of a dealerships profit margin is made by the Finance Business Office. They make their profit selling items like financing, various types of insurance, extended warranties, rust proofing, paint protection, security systems and etching.
Contract
Before you sign the purchase contract review all the Contract Terms and Items which have been typed on the contract. Take your time and question any item you do not understand. After you sign the document it becomes almost impossible to change any of the items.
The review should include, but not be limited to, the following:
- Purchase price of the new vehicle
- Value of the trade-in and loan balance, if applicable.
- Manufacture rebate, if applicable
- Cost of the add-ons purchased from the dealership, if applicable
- Interest rate on the loan, if financed through the dealership
- Term of the loan (Months), if financed through the dealership
- Down Payment
- Small charges
Dealership Tricks: Dealerships have been known to put small charges $50-200
in the contract without any explanation.
Buyer Tip: Look for any unusual charges, both large and small, which you have not agreed to purchase. These are known in industry lingo as “junk fees.” Have them remove all these charges before you sign the contract.
Dealership Tricks: Dealerships have been known to tell buyers a small fee covers an item they added to the vehicle e.g. registration tags, security chip.
Buyer Tip: If it is not on the vehicle price sticker you don’t have to pay for it. If it is on the vehicle price sticker it is part of the negotiated price.
Dealership Trick: Dealerships have been known to add duplicate items which are already on the dealer invoice.
Buyer Tip: Ask for the Mulroney Sticker from your new vehicle so you can inspect for duplicate items. The Mulroney sticker is a Federally required vehicle price sticker which must be displayed in the window of all new vehicles.
Dealership Trick: Dealerships have been known to add dealer add-ons which you did not agree to purchase, items priced at substantial markups e.g. registration stickers, alarm systems which they say are already on the vehicle and other meaningless charges.
Buyer Tip: Question every item and don’t purchase any item you don’t want or need.
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