5 Red Flags at the Auto Dealer

An auto dealer is someone who sells new or used cars. This video advises on the red flags to watch out for when purchasing a new car.

5 Warning Signs to Look Out For:

1. Test Drive Deposit

If the dealer asks for a deposit or credit application before letting the potential buyer test drive the car, it is a red flag. For the buyer to test drive a car, neither is needed.


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2. Trade-Ins

Another red flag is if the auto dealer wants to appraise the trade-in car before an agreement has been reached.

3. Different Price Advertised

If the advertised price of the car is less than the selling price, it is a warning sign, and the potential buyer should walk out.

4. Payment Packing

If the terms of payment have specified an amount, interest rate, and term, but the payment is in a range, it is illegal and therefore a red flag.

5. Reconditioning Fee

Another red flag is if the auto dealer charges a reconditioning fee for a used car.

If dealerships were more transparent in pricing, they would gain more business. Stay away from any auto dealer that uses unethical tactics to sell cars.