What do you think about this OP-ED?
What’s the biggest scam in the car industry?
There’s a lot of shady practices, which may not be illegal, but are definitely unethical. One of my pet peeves is “Dealer Prep.”
Dealer prep is a fee, which is somewhere between $200–$500. It’s added onto the sales contract and is financed (with interest) along with your purchase price.
What is “Dealer Prep?” Essentially this is what the dealer charges you to receive the car from the shipper, look it over to make sure the protective tarp, bumpers and tape are removed. They also check the fluid levels, air pressure in the tires and make sure the vehicle is clean and ready to sell.
Why is this a scam? Because by law, they have to do this anyway. A new vehicle must be presented to the buyer in the condition that the manufacturer represents it. When Chevrolet shows you a picture in their catalog or website of a new Cruze and displays a price of $21,998.00 - That’s an advertising promise, agreement or contract. They’re stating that the car, as pictured is what you will receive for the advertised price.
What the dealer is saying is, they will charge you extra to make it presentable and safe, like the one that Chevrolet advertised. You also have no choice except to accept a car that is properly prepped. A dealer cannot simply roll a vehicle off the truck and hand you the keys, while letting you remove the protective packaging and shipping materials and verify that it’s safe to drive off the lot.
In every auto deal I’ve ever made, I always insist that the dealer waive the dealer prep fee. It’s a scam…
What’s the biggest scam in the car industry?
There’s a lot of shady practices, which may not be illegal, but are definitely unethical. One of my pet peeves is “Dealer Prep.”
Dealer prep is a fee, which is somewhere between $200–$500. It’s added onto the sales contract and is financed (with interest) along with your purchase price.
What is “Dealer Prep?” Essentially this is what the dealer charges you to receive the car from the shipper, look it over to make sure the protective tarp, bumpers and tape are removed. They also check the fluid levels, air pressure in the tires and make sure the vehicle is clean and ready to sell.
Why is this a scam? Because by law, they have to do this anyway. A new vehicle must be presented to the buyer in the condition that the manufacturer represents it. When Chevrolet shows you a picture in their catalog or website of a new Cruze and displays a price of $21,998.00 - That’s an advertising promise, agreement or contract. They’re stating that the car, as pictured is what you will receive for the advertised price.
What the dealer is saying is, they will charge you extra to make it presentable and safe, like the one that Chevrolet advertised. You also have no choice except to accept a car that is properly prepped. A dealer cannot simply roll a vehicle off the truck and hand you the keys, while letting you remove the protective packaging and shipping materials and verify that it’s safe to drive off the lot.
In every auto deal I’ve ever made, I always insist that the dealer waive the dealer prep fee. It’s a scam…