Sneaky Ways Car Dealers Make Money By Frank-Ling / Jul 22, 2015 share Facebook Twitter Google + LinkedIn Pinterest Email Share... Most people believe car dealers make money by selling cars, but this is only half of the story. They also make money off of you by using sneaky tricks such as the illegal tactic of “bait and switch.”You may see an ad in the newspaper or on the Internet offering a fantastic deal on a car, but when you show up, you’re told “I’m sorry; the car has been sold, but how about that car over there?”The car never was sold but was used to tease people into coming in. Shiftier car dealers will put the fine print in their ads saying, “Only one available at this location.” So they’re not breaking the law, but it’s still sneaky.They’ll Wear You DownAlmost everyone, at one time or another, has experience marathon sessions at car dealers trying to hammer out a good price. This can literally take most or all of the day, which is basically 6-8 hours.If and when you finally get the price and features you want, the salespeople know that you’re tired and are anxious to leave with your new or used car.They will use this against you by trying to tack on extra warranty plans, extra car treatments, extra “service” fees, and just about anything else to increase their profit margin to close the deal.The best way to tackle this problem is to be certain of what price you expect to buy the car for, and stick to that. Let the car dealer know that you only have an hour to make this deal or you’ll walk.If the car dealer can’t come up with the right price you want in an hour or less, they probably never will.Higher Interest RateLet’s say that you are offered a car that is $2,000 less than the MSRP. That’s pretty good right? Not really, because this depends on what the interest on the loan is. If you are financing the car through the dealer, be very careful.Some sneaky car dealers will let you win the battle (the price on the car), but will win the battle (the total interest on the loan) by jacking it higher. They won’t make money on you out the door, but over the span of the loan, they make back, and much more through the interest.They’ll Low-ball You on the Trade InA favorite trick that car dealers like to pull on customers is to give a really low value for their trade ins. They start very low so you can talk them back up to the price they really want for it.So if they tell you your car is only worth $5,000, you’ll start to beg them to give you more for your trade in. The offer goes up to $7,000 and you think you’ve won. But the reality of the matter is that your car is worth $12,000.Always check car value sources to find out what your car is really worth before trading it in. This will not only give you a better chance of getting more for your car, but it will show how honest the car dealer really is.Source: Business Insider