Next to a home, a car purchase is usually the largest financial transaction most consumers will ever enter into. To entice consumers, many new car dealers typically advertise special promotions. These may include high trade-in allowances, free or low-cost options, dealer’s invoice prices, free prizes, unusually low interest rates, no-payment grace periods, and other “specials.” When you spot an advertised special, read the ad carefully, including the small print at the bottom of the ad. Then compare this special with ones offered by other dealers. Do not allow advertised specials to lull you into neglecting to consult reference material in your local library or elsewhere and to shop around to insure that you are getting the best available deal. Remember, if the offer seems too good to be true, it probably is!

Trade-in allowances

Advertisements offering to pay you a high amount for your trade-in vehicle are often not applicable unless you agree to purchase a new vehicle at the STICKER PRICE. While the high trade allowance may seem attractive, you may be giving back the trade allowance by paying substantially more for the new vehicle than you would have paid by shopping around and negotiating the purchase price.

Low price specials

Ads offering dealer’s invoice prices or other low-priced specials are often “stripped-down” models, without air conditioning, automatic transmission, or other options which many consumers desire. Too often, the advertised model (which may be designated in the ad with a “stock #”) is unavailable once you arrive at the dealership, and the dealer may not be willing to order one for you. Moreover, the dealer may recoup all of its profit by adding typically high-profit options such as rust proofing, undercoating, or other items. Beware of advertised low monthly price offers that may be lower only because they are based upon a LEASE transaction, rather than a purchase. And beware of offers of low priced cars that are actually pre-owned, pre-leased or demonstrator models.

Low interest rates

In order to qualify for advertised low interest rates, you may be required: to make a large down payment; to pay sticker; to repay the loan in a shorter period of time; or to purchase additional options. Remember that you are not limited to financing offered by the dealer.

Other advertised specials

Advertisers often construct their ads to catch your attention. By using a bold headline offering a low price, low interest rate, prize, grace period, or other apparently attractive offer, these ads may lure you into the dealership. Many of these offers contain important conditions, limitations or restrictions, which are in small print at the bottom of the ad. Be sure that you are aware of any important conditions or limitations on an advertised offer before taking the time to visit the dealership.