Car Price Deals: What's the Catch?
There are so many new car deals being advertised that sound great. But many of these deals have restrictions, exclusions or limitations that could affect you. Many of these ads show the low car prices in big numbers, with the conditions in small print at the bottom. Make sure that you understand all of the aspects of the offer. Take the time to read and understand every clause and loophole before you sign anything. Here are some common "catches" to watch out for:
Estimates based on...: Some financing deals are contingent on things such as a predetermined cash down payment. You may need to put down a large amount in cash at the time of sale in order to get the advertised low rate financing. If you don't have the cash down payment, you may be stuck with a higher finance rate.
Offer only available in...: Some incentives being offered by the automakers are regional. If you don't live in one of the areas specified, then the deal is not available to you. The same vehicle may have a different price just by crossing the state line.
Dealer participation may affect savings: This means the offer is contingent on the dealer's participation in the program being advertised by the automaker. Be sure the dealer you're negotiating with is participating in the deal that you saw in the ad.
Not compatible with other offers: This means you may not be able to get both low-rate financing and the cash back offer. You have to pick one or the other.
Buyer must take delivery by...: This means that the deal is only good if you buy the car before a specific date. This can put pressure on the consumer to make a snap decision and purchase a vehicle that may not have all the features and equipment that they wanted.
Estimates do not include...: Things like transportation and handling may not be included in the advertised price. The new car price you thought you were getting could very well turn out to be nothing like the price you actually end up getting. Insist that every charge and fee associated with the purchase be clearly spelled out in writing, before you commit to buy.
Not all buyers will qualify: Most finance offers have this written somewhere in the fine print. If you are a first-time buyer, or have less than exemplary credit, the finance rate you were counting on may be unavailable to you. It's a good idea to check alternate sources for financing, such as a bank or credit union , just in case the deal being offered by the automaker won't be available to you.
Restrictions may apply: This means the offer might be contingent not just on where you happen to live, but also on how many miles you drive annually. It doesn't do you much good to get a great deal on a lease if your annual mileage exceeds the maximum allowable limit, at which point you'll get hit with additional charges.
Must be financed or leased through...: This means that in order to get the offered cash back/rebate, you have to finance the new car through the automaker's own finance company, rather than a credit union or private bank. You may also not be able to get the cash back if you pay cash for the vehicle. Basically, the automaker is looking to recoup the "deal" by making money from you via interest payments.
Published on Friday, January 9, 2009 - Email to a friend
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