Pitfalls when buying a car from a dealership


What types of car dealerships are there?

Before you buy a used car at a car dealership, let's figure out what these sales points are. Conventionally, they can be divided into two types - official dealers and showrooms specializing in the sale of used cars.

types of car dealerships

Official dealers make a profit from the sale of cars from large automakers with whom they have a contract. Used copies usually come to them via Trade-in. That is, the buyer trades in his used car, pays extra and gets a new dealer car.

The second type is showrooms specializing in the sale of used cars. This is their main income. Often such a car dealership looks like an ordinary parking lot with many cars of different brands.

Good reasons to bargain

It would seem how you can bargain at a car dealership, because this is not a market, but a reputable organization. Each car offered for sale here has a fixed price tag, which is probably justified. Indeed, before selling a used car, it undergoes technical testing and preparation. Experts calculate its market value and add their expenses and margin to the price. This is how the price tag is formed and announced to the buyer.

However, some problems identified by the car dealership at the stage of preparing the car for sale can be well disguised. Due to this, the price of the car can be quite inflated. Therefore, when buying a used car at a car dealership, you need to check it just as carefully as when buying from a private owner.

Also read: Buying a used car from a showroom: pitfalls

So do they sell at car dealerships? Of course yes! Bargaining is appropriate, but it requires good reasons.

When to bargain:

  • if inconsistencies are identified between real (documented) and declared information;
  • if technical defects or malfunctions are detected;
  • if you are sure that the price is unreasonably high.

It is better to prepare for bargaining in advance. How to do this, read below.

Features of dealer showrooms

The undoubted advantage of such car dealerships is that they are concerned about their reputation and do not sell outright junk or a car with a dubious past. Although they are not immune from mistakes. But this is rather an exception to the rule.

They have one more feature. The segment of cheap cars from “officials” is poorly represented. For example, one of the largest sellers of used cars from an official dealer in the Sverdlovsk region currently offers only two cars cheaper than 350 thousand rubles.

If you don’t have enough money for a purchase, it will be useful for you to learn how to buy a car from a car dealership on credit.

Common Mistakes

Many car dealership clients make common mistakes:

  • they do not check the car they are interested in;
  • do not haggle when buying a car at a car dealership;
  • They don't read the sales contract.

By blindly trusting salon employees, you are taking an unjustified risk. But to be on the safe side, it’s enough to spend a few minutes and study the detailed history of the car. And if you have the slightest doubt about the technical condition of the car, you can invite field experts. These are all bargaining opportunities.

mistakes when trading

Before signing a purchase and sale agreement, it is a good idea to carefully study it. The document should not contain ambiguous language regarding the rights of the buyer and seller. In addition, make sure that the exact amount that was negotiated is included in the contract.

Pros and cons of official dealer showrooms

Buying a used car from an “official” dealership has the following advantages:

  • Legal purity. Let us repeat, such showrooms value their reputation and check the car before purchasing.
  • Upon acceptance, the salon diagnoses the car. At the same time, the qualifications of the technician and the service itself where the car is accepted are better from the “officials”.
  • Service. In such a salon, no one will poke you or try to persuade you to buy in an aggressive manner. Some dealerships may provide a thickness gauge to help you make sure the car is unpainted.
  • Guarantee. In the case of an official dealer, this is not a fiction. They will actually repair your car or refund your money if it has a significant defect.

Now let's move on to the cons:

  • You will not be allowed to drive your car. The main reason is that the car does not have insurance, and the dealership does not want to increase the mileage.
  • You may not be allowed to check the car properly. For example, the salon will not allow you to unscrew the spark plugs or measure the compression.
  • Cars are more expensive. Dealerships are reluctant to reduce prices, while small firms sometimes allow the buyer to negotiate with the seller in person over the phone. Autocode already wrote about this earlier.

As you can see, such car dealerships have enough pros and cons.

Also read: Bargaining when buying a used car: how to reduce the price of a used car

Used car sales shops

There are many more nuances to such a deal. To buy a used car at a car dealership, you will have to carefully read the sales contract at least several times.

selling used cars at a car dealership

Be prepared for the fact that a small dealership will try at all costs to “pump” out of you a larger amount than what is indicated in the advertisement for the sale of the car. The “trick” of such a salon can be a 20-page purchase and sale agreement with a bunch of clauses. The calculation is simple. The buyer will get tired of constantly re-reading this Talmud and will not see important points. For example, those where it is written that you undertake to pay the salon 5-15 thousand for pre-sale preparation, drawing up a purchase and sale agreement, diagnostics, consultation during selection - there are many options.

Keep your eyes open, because after you cross out these points and the contract is printed again, the manager can quietly replace your copy. For example, by taking documents from you to put a stamp, or by “discovering” some incorrect items.

In such places, simply printing out a contract can take an hour. This is necessary so that the buyer’s attention weakens, and besides, you will be under pressure that the salon is about to close.

When buying a car, we recommend using the Autocode service for checking used cars. In just 5 minutes you will find out all the ins and outs of the car: whether it has any fines, arrests, whether it has been stolen, where it was serviced and much more. And most importantly, you will be sure that you are not being deceived.

Autocode is suitable if you need to check one or more cars. If you need to constantly check a large number of cars, use the “Autocode Pro” unlimited car check service. A subscription to unlimited car checks costs 2,500 rubles per month. “Autocode Pro” allows you to add comments to reports, create your own lists of liquid vehicles, quickly compare options and store data about cars in an orderly manner.

Pros and cons of buying from an unofficial dealer

Let's start with the advantages for the buyer:

  • Small showrooms have much more budget cars than “official” ones.
  • Sellers agree to lower the price much more easily. If the car does not belong to the dealership, then the manager will try to “push” the owner on the price, just so that the deal goes through.
  • Such salons are not so scrupulous and may allow you to drive. They also provide more freedom in terms of verification.

In the previous chapter we already named the main disadvantages. Let's name others:

  • If after purchase the car is found to have defects, then it will most likely not be possible to receive compensation from the dealership. As we have already said, small car dealerships are not as worried about their reputation as dealerships.
  • Legal and technical verification. If it exists, good, but it may well not exist. Not all car dealerships are ready to employ an acceptance specialist, and there may not be a workshop for accepting cars. Such sellers do not bother themselves much with checking the legal purity of the car.
  • Psychological pressure. In such a company you will not always be served politely. Familiarity and an aggressive sales style are possible.
  • Cars with damaged mileage, used in taxis, restored after an accident, “drowned” cars - all this is easy to find in a car dealership. Such cars are bought at a bargain price and, after restoration and polishing, are sold at exorbitant prices.

We have named the main problems that you are at risk of encountering. But keep in mind, dishonest sellers are constantly improving, because the purchase of used cars and their resale is the main source of income for “gray” showrooms, so there may be many more schemes to defraud the buyer.

Also read: How to check a car when buying at a car dealership

Buying tips

what to do when buying a car

To make buying a used car a joyful experience, follow these simple instructions:

  • Before going to the salon, read reviews about it on the Internet.
  • Take a friend with you. Ideally, someone who understands cars. But if there is no such person, you can take anyone, the main thing is not to go alone. This is necessary so that you can be stopped from taking rash steps, plus it will be easier to protect yourself from psychological pressure.
  • Read the purchase and sale agreement carefully, no matter how many times it is reprinted. Ignore the manager’s words that this is the same contract that you just read. There they can change not only the item you knew about, but also any other.
  • Before purchasing, look at the PTS and check the data from it with those specified in the contract. Sometimes sellers overestimate the year of manufacture, and after the buyer gives the money, the car suddenly “goes old”.

To be sure that the car is in good working order and has not been damaged, use the on-site car inspection service. An experienced technician will arrive at the right time, conduct an inspection and help you avoid making mistakes when choosing a used car.

Consequences of deception when buying a used car

A buyer of a used car at a car dealership expects some kind of guarantee from the seller, but this does not always work out in reality. As a result, the owner of a used car tries to return the car to the dealership, or have it repaired at the expense of the car dealership that sold the low-quality used car.

A used machine is considered serviceable if it can pass instrumental inspection without any repairs. If a used car does not pass technical inspection, then this speaks volumes about its condition and further relations with the dealership.

If the owner of a used car is able to prove that he was not provided with all the necessary information about the condition of the car, which the car dealership knew about, then it is possible to demand repair, at the expense of the car dealership, to a technically sound condition suitable for use of the used car:

  1. Plus moral damage
  2. Plus penalties for the terms of the claim,
  3. Plus legal services

Regarding the reimbursement of CASCO insurance and registration of the car with the traffic police, then, by the decision of YOU, these expenses are not subject to reimbursement in the event of termination of the car purchase and sale agreement.

Everyone has the right to choose their own way of buying a used car, but you should avoid the mistakes of others and you should conduct a professional check of the condition of a used car before purchasing.

Website editors

Publications on the topics: how to get a car loan, which car to choose for credit, conditions for car loans in banks for new and used cars, how to repay a car loan ahead of schedule, CASCO and MTPL insurance for a loan car. The editors of the “Car on Credit” website help you understand the issues of obtaining, repaying and servicing a car loan

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