Saving & Spending Home & Auto

10 Car Dealership Tricks That Cost You Thousands

Steer clear of these shady sales tactics.

By Jarret Hendrickson

Edited by Esther Carlstone

Updated Nov. 8, 2025

Consumers need to be cautious when buying a new car from dealerships, as some have been known to engage in questionable practices that take advantage of buyers. From deceptive financing tactics and unnecessary warranties to overpriced add-ons, shoppers who recognize these dealership schemes gain more bargaining power and know when to walk away.

Understanding these common tricks of the trade is a smart money move for car shoppers.

Convince you to get the extended warranty

There's no clear consensus on whether extended warranties are a smart investment or a gimmick devised to convince consumers to sign their money away, and there's a good chance that you'll overpay if you purchase one when buying a car at a dealership.

Outside of an unforeseen catastrophe happening after the manufacturer's warranty has expired, purchasing an extended warranty won't save most consumers any money and may even cost them thousands of dollars extra.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Ask you for your ideal monthly payment

Many dealers will try to get consumers to pay more by asking them how much they would like to pay per month. This is a trap.

Once they know this number, they can extend the loan by one or two years at the buyer's preferred monthly payment to make a higher-priced vehicle more affordable and appealing. In reality, those dozens of extra monthly payments can cost shoppers a fortune in interest.

Pull a financing switcheroo

Some dealerships will present buyers with a new financing sheet with higher monthly payments, interest rates, and even a completely different format than what was previously discussed.

Consumers who don't want to be swindled by this shady tactic should keep a copy of the original term sheet with them so that they can make sure the vehicle price, down payment, trade-in value, interest rate, long-term, and monthly payment all match what they previously agreed to.

Resolve $10,000 or more of your debt

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Sneak in delivery fees

A recent method some dealerships use to charge consumers extra money is a vehicle delivery fee. Dealers will say that buyers have to pay a fee for the manufacturer delivering the car to the dealership, but that simply isn't true.

The destination fee already covers this and is normally included in the vehicle's sticker price, so be sure you're not paying for the same thing twice.

Encourage you to purchase additional sealants

Since modern vehicles roll off a factory line with paint designed to withstand the elements for the vehicle's entire life, there is no reason to purchase extra sealant or rust proofing from the dealership.

Phrases such as extra sealant, surface protection, and fabric protection are just an easy way to charge customers an unnecessary fee.

Lie about credit scores

Shoppers with excellent credit scores usually get lower rates on more favorable loans. Dealerships know this, which is why some will unscrupulously tell buyers that their credit score is lower than it actually is.

This can trick shoppers into paying higher interest rates and losing out on money-saving dealership incentives. Avoid this scam by checking your credit score with all three major credit bureaus before going to the dealership.

Don't Miss: 7 warning signs you're paying too much for car insurance.

Oversell a car's features

Some dealers will spend an inordinate amount of time on a car's features, waxing poetic about its premium sound system, lane-keeping assist, or panoramic sunroof. This tactic aims to manipulate consumers into creating a rose-colored picture of how wonderful life with this car could be.

Once consumers are emotionally hooked on this dream car narrative, they're more likely to accept inflated vehicle prices.

Install additional car alarms or tracking systems

Many modern cars already come equipped with alarm or tracking systems, and some manufacturers offer tracking features for a monthly subscription fee. Local car electronics retailers may also provide these systems at a lower cost than dealerships.

However, some dealerships install them on every vehicle as a theft deterrent. If you don't want to pay extra for one, make sure to request its removal before finalizing your purchase.

Engage in yo-yo financing

Yo-yo financing, or the yo-yo scam, is illegal. Some unethical dealerships will contact buyers after they have signed their paperwork and driven their new car home to tell them that their financing wasn't approved.

They then offer buyers an ultimatum: sign a new deal with a higher interest rate or lose their vehicle and down payment.

Consumers who believe they are the victim of a yo-yo scam should contact the Federal Trade Commission (FTC) immediately.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

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Pressure buyers with limited-time offers

If dealers sense that shoppers are on the fence, they might try pressuring them by saying that an offer expires that day, or that other buyers are interested in the same vehicle. Dealers use this tactic to force buyers into emotion-based decision-making so they will agree to pay more.

If you're unsure about a vehicle or offer, be willing to walk away and think things over so you don't end up overpaying.

Bottom line

Financially savvy shoppers hoping to score a great deal at the dealership should pay as much attention to the salesperson's tactics as to the car itself. Otherwise, they risk falling for misleading tricks that could cost them thousands.

Just as consumers compare auto insurance rates to save money, buyers should shop around and compare offers from multiple dealerships to ensure they're getting the best possible deal.

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