The buyer who is well informed is the wisest, while uninformed customers often get confused by all of the complex information that goes along with purchasing a vehicle.  Car dealers use it to their advantage when a consumer hasn’t done their research.

One way that auto dealers make extra profit is to bounce profit potential between two different transactions.  For example, if a consumer really wants to do well on their trade in, a dealer may inflate the down payment or the monthly payments.

Be aware that auto dealers legally don’t have to give you the lowest interest rate that you qualify for.  After doing the credit check, the dealer will know details, such as your housing status and income and they will add it all up to determine what they feel you are willing to pay.

Buyers who are inattentive or confused may also be “slammed”.  This is when dealers take over and hurry customers through the entire process of test-driving, negotiating, signing papers, and driving the car home.  Unfortunately, this often results in buyer’s remorse.

Buyers must do their research before even showing up at the dealership.  Dealers can sense an uninformed buyer and will often take advantage of them.  In addition, buyers should research new car warranties and auto loans in order to get the best deals.