A couple I know bought a car without asking for help. That was a mistake. After decades of buying cars, they thought they knew how to avoid getting scammed. But now that they are in their 80s, their negotiating skills aren’t what they used to be, and they ended up buying an unnecessary extended warranty and overpaying for the car. Two experts have shared their tips to help you avoid getting scammed the next time your purchase a car.
Do Your Research
The more you know about a car’s price and the features you actually need, the less likely you are to buy one you don’t need. “Every consumer, no matter their age, needs to do their homework,” says Melanie McGovern, public relations director for the Better Business Bureau (BBB). She explains that this knowledge helps you advocate for yourself at the dealership and avoid getting “sucked into deals, steals or sales tactics while you’re there.”
Automotive expert Lauren Fix also emphasizes preparing before you step onto the lot. “If you don’t have a computer or don’t know how to use YouTube, ask a neighbor or a friend,” she suggests. On her YouTube channel Car Coach Reports she offers tips and detailed car reviews. As a former dealer trainer, she knows the tricks they might use to pressure you into buying unnecessary options.
Read Dealership Reviews and Check BBB Scam Tracker
After the couple’s negative experience, I checked multiple websites for reviews and learned they weren’t the only ones who had a horrible time with that dealership. Before you buy a car, read online reviews on several sites like BBB, Google and Kelley Blue Book and pay attention to how the dealership responds to complaints. “We always tell people, don’t look at complaints as a negative; look at them as an opportunity to see how they’ll handle customer service,” says McGovern.
She also recommends using BBB Scam Tracker to learn about the latest scams involving cars and other categories.
Bring a Neutral Party for the Purchase
The couple I know got caught up in the emotion of buying a new car, and the dealership took full advantage of them. If I had been there, I could have pointed out that while they did require a replacement, it didn’t have to happen that day. “It’s stressful for some people, because they don’t like to negotiate,” says Fix.
“The tricksters [salespeople] are really good at this business, and they know just what to say to get you thinking, ‘Yeah, you’re right,'” explains Fix. They especially know how to do this when you feel the pressure of needing a new car. “You need to be aware of it as a consumer, not to get tricked,” she says. An impartial companion can help to prevent you from being pressured into a purchase you don’t want or need.
If that’s not an option, McGovern suggests showing up with a folder containing all of your research. This signals to the salesperson that you are prepared. “That makes you not only a better consumer, but better armed at the dealership when it comes to negotiating,” she says.
Don’t Purchase an Extended Warranty
The dealership pressured the couple I know into buying an extended warranty they didn’t need. If this happens to you, you should be able to cancel it later as they did. According to the experts, extended warranties are unnecessary.
“If you buy new, the vehicle has a warranty,” says McGovern. She recommends firmly saying you aren’t interested and, if needed, walking away from the sale.
Fix agrees. “It really upsets me that people are tricked to buy these extended warranties. I don’t like any of them.” Instead of buying one, she suggests putting aside $100 a month in an envelope or drawer. “If you did that, you’d have $1,200 at the end of the year,” which you could use for repairs once the original warranty expires, usually after three years for most cars.
Fix also notes that dealers push these warranties because they earn a commission from the companies that sell them. “Their job is to upsell you into something you don’t need,” she says. “Some of [these companies] have been sued by the federal government, many have gone out of business, and there is not one I would recommend.”
She also adds that if you don’t plan to put many miles on the car, an extended warranty would probably be unnecessary once the manufacturer’s coverage ends.
Be Willing to Walk Away
The couple I know went into the dealership determined to buy a car that day. According to the experts, that was their biggest mistake. Instead, they recommended doing the opposite: plan to walk away. Give yourself time to think about the purchase and compare offers from other dealerships.
McGovern suggests going in with a plan and a clear exit strategy. She recommends saying, “I’m going to take this information home and think about it.” And if a salesperson insists that a deal is “only good today,” she advises stepping back. “Go home, look at your options. There is no harm in shopping around, especially when it comes to a big purchase like a vehicle.”
If the couple I know had walked away, I could have told them to try another dealership and even gone with them to make the purchase. Hopefully their experience can help you realize that with a little preparation and confidence, you’ll avoid getting scammed the next time you shop for a car.
Cheryl Maguire holds a Master of Counseling Psychology degree. She is married and is the mother of twins and a daughter. Her writing has been published in The New York Times, National Geographic, The Washington Post, The Boston Globe, Parents Magazine, AARP, Healthline, Success Magazine and many other publications.