When Negotiating With Car Dealers Beware Of Hidden Closing Costs

It would appear that car manufacturers pull out all stops to get you to buy a car. On one hand this is understandable, because there is a tremendous amount of competition out there, and a salesman's gotta do what a salesman's gotta do to earn a commission. On the other hand, a little upfront honesty would be nice for a change.

That commercial that you saw that made it seem as if you were getting a new car for little or no money was enough to send you car shopping. Unfortunately, you probably got an unpleasant surprise when it was time to sign on the dotted line. There are no free lunches in business, they say.

So, why should you believe your car dealer when he says he has offered you huge freebies and goodies? The truth is he is a clever salesman making up for the apparent "discounts" with hidden costs. Hidden till you closed the deal, that is. No sooner would you have clinched the deal, than this tag of hidden costs spring on you like a Frankenstein monster, catching you unawares! This monster can not only be irritating, this can have the potential to alter your opinion about the dealer and about the business itself.

You have no defense, nor can you take him to court, because he had mentioned it all. You're wondering where? In his smartly couched language, so full of jargon, you'd not have understood a word of it till it hit you. So, is there a way out? Can you make sure you don't get fooled like this in future? There is, if you followed some smart steps. First, be sure about the mileage he is offering on extended warranty. This is one of the trickiest areas of misunderstanding.

Most dealers specify a certain limit for the distance the car has run, or a certain point of time from the date of purchase, whichever is first, (needless to say), to offer this warranty. Make sure this is very clearly stated. Then, a more important problem can crop up when the warranty would be on some parts, and your car developed problems in some others! This is one of the easiest ways of dismissing your warranty claims. Again, there is a hitch on the duration of the warranty. By the rule of thumb, don't go in for extended warranty if your lease period is three years; go in for one only if it is for five years or above. This way, since most cars, (again, not necessarily), don't flunk in the first three years; there may be some wisdom in this move.

Finally, make sure you visit some websites to assess your warranty in all its miniscule details, rather than approach the dealer for this. In the end, you only need to have one really reliable source to prevent being taken for a ride; a keen eye for detail, so that the Frankenstein monster does not pounce on you at the most inopportune moment!.

Gregg Hall is an author living in Navarre Beach, Florida. Find more about this as well as car buying tips at

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