Deceptive advertising can put you in debt
This past month, my in laws spent one weekend looking for a used car. One particular radio advertisement talked about how low the monthly payment would be on a 2007 model car. When people start talking about low monthly payments and no down payment, I know the loan term is going to be the offsetting factor. Sure enough, the loan term on these used cars would be set at 72 months. That’s 6 years—for a used car! The thing that got them though was finding out that the payment advertised was only applicable if they paid the state sales taxes on the car up front, made a down payment, and had near perfect credit.
Although the salesman claimed their credit put them in a perfect position to get a great deal on financing, their inability to pay the taxes (9.25%) and a down payment meant their monthly payment wouldn’t be as low as the advertised price.
Of course, my in-laws aren’t that easily fooled—and they’re on a fixed income. They passed on the vehicle.
Anyone not quite as strong might have let themselves end up with a loan payment larger than what they wanted or needed. These kinds of advertising tactics are meant to reel you in. Once they have your attention, they’re hoping you’ll have trouble taking control of the situation and walking away when your expectations aren’t met.
My mother-in-law was most insulted when the salespeople came back from calculating the monthly payment after she complained about their deceptive advertising and said something along the lines of “I have good news! We got your payment down to $229.” (The advertised monthly payment was $199.) She had a set number in mind, and she didn’t let the salespeople’s fake enthusiasm at getting her a “lower” payment fool her into making a commitment she didn’t want to make when she set out that morning on her car hunt.
No, my in-laws still haven’t found the vehicle they want and can afford, but they’re taking their time and I have confidence that when they do, they won’t be paying more than they’re comfortable paying.
Avoid spending more than you want
- Set your price before you go.
- Stick to your price even if the salespeople try to generate a sense of panic by telling you how time sensitive the deal is, or how you’ll never get this good of a deal again.
- Be prepared to walk away if the salespeople won’t or can’t meet your price.
- Walk away if you feel panic or nervousness setting in. It’s for your own good. You should only shop when you’re calm and in control.
It actually feels very good to walk away when you aren’t given what you want. The feeling of power and control can become addictive.
Have you ever walked away from a large purchase, or been convinced to buy something you weren’t sure you wanted? How did you deal with the situation?
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