What is bait & switch and other sales strategies

Buying a car is a big deal, and most folks choose to do it at a car dealership. This is because dealerships give you lots of cars to choose from, they can help with car loans, and you can trade in your old car there too. But buying a car isn't something we do every day, so the whole experience might be confusing. While most car dealers are honest and helpful, a few might not be as straightforward, and this could result in unexpected costs. So, it's important to know what to expect and how to recognize what is not in your best interest in order to make the best decision.

This trick happens when a dealership advertises a really good deal on a car, but when you get there, they tell you that car is gone and try to sell you a more expensive one.

Example: You see a car listed for $\mathrm{\$}\mathrm{10,000}$‍ online. But, when you show up, the dealership says it's sold and shows you a similar car for $\mathrm{\$}\mathrm{15,000}$‍ instead.

What to do: Call the dealership before you go and ask them to confirm the car is there. Get them to send you something in writing, like a text or email. If they won't or if they try to switch cars on you, it's best to leave.

When you buy a car, you must pay sales tax, a title transfer fee to put the car in your name, and a registration fee for your license plates. These costs are set by the government and are not optional.

But, dealerships often have their own fees and sometimes, they don't tell you about all the extra fees until the last minute. These could be for paperwork or getting the car ready.

Example: Right when you're about to buy the car, you find out there are extra fees like $\mathrm{\$}500$‍ for paperwork and $\mathrm{\$}200$‍ for getting the car ready that they didn't mention before.

What to do: Ask for a full list of fees at the beginning. If there are fees you weren't told about, ask what they are for and if you can get them removed or lowered. Look for vague names of fees, like dealership fee, document fee, or processing fee. $\mathrm{\$}500$‍ fee for paperwork is excessive and you should be able to negotiate it down.

Dealerships might push you to buy an extended warranty for extra protection. But these can be expensive, and sometimes you don't really need them.

Example: The dealership wants you to pay $\mathrm{\$}\mathrm{2,000}$‍ extra for an extended warranty, even though the car already has a good warranty from the maker.

What to do: Look into how reliable the car is and what the maker's warranty covers before you go. If you don't think you need an extra warranty, just say no.

Dealers might try to sell you things you don't need, like special paint protection or seat coverings, which can add a lot to the cost.

Example: The dealer added $\mathrm{\$}\mathrm{1,500}$‍ for rust proofing and paint protection that you didn't ask for, but they already applied it to the car.

What to do: Stick to what you need. If you don't think these add-ons are worth it, tell them you don't want them. Remind them you did not ask for them and ask that these extras be removed from the invoice.

Dealerships might try to make you feel like you have to make a decision right away. But making a rushed decision can lead to regret.

Example: The salesperson says you have to buy the car today to get a special deal.

What to do: Take your time. If you feel pressured, it's okay to walk away. Remember, there will always be other cars and deals.

Sometimes, when talking about loans, dealerships focus on your monthly payment rather than the total cost. If you say a payment is too high, they might ask what you can afford. Then, they make the loan last longer (like stretching it from four years to six years).

Example: You tell the dealership a $\mathrm{\$}400$‍ monthly payment is too much. They ask what you can manage, and you say $\mathrm{\$}300$‍. Then, they change up your loan terms (make your loan last longer), and offer you a $\mathrm{\$}250$‍ payment. Seems like they are offering you an even better deal! But, even though your monthly payments are lower, you end up paying much more over the life of the loan.

What to do: Before you even step foot in the dealership, use a financial calculator to estimate a reasonable monthly payment based on the price of the car you're interested in. That way you know what you can expect to pay for it each month.

Also, call your bank or a credit union to get pre-approved for a car loan. This pre-approval gives you leverage when negotiating with the dealership. If the dealership offers financing, only consider it if they can beat your bank's interest rate. Both of these approaches will help you get the best deal possible without falling into the trap of unnecessarily long loan terms.

By being ready for these tricks, you can feel more in control when you're buying a car. Remember, it's okay to ask questions, take your time, and say no to things you don't want.