Be wary of promotions for used-car "blow-out" sales

If you receive a glossy flyer from a local car dealership promoting a huge used-car sales event, proceed with caution. Such events usually feature contests, simulated checks, or “bonus” vouchers that customers are urged to use to take thousands of dollars off the price of a used car. One flyer we saw included a key that recipients were instructed to take to the sale to see if they’d won a new car.

These “blow-outs” typically use a local dealer’s name, but they are conducted by outside companies that sometimes charge higher prices than the dealership itself. And some have used high-pressure and deceptive sales tactics, say state attorneys general who have investigated the industry.

Earlier this year, the Washington state attorney general’s office announced a settlement with a company that it accused of, among other things, failing to disclose the number of vehicles available at an advertised price; misrepresenting the ease of obtaining financing; and using words such as “drastically discounted” to misrepresent the value of the vehicles sold. The settlement, with the Automotive Consultant Group of Metairie, La., didn’t include a finding or admission of wrongdoing. The agency said it had seen an increase in out-of-state firms marketing new and used cars for local dealerships.—Anthony Giorgianni

Comments

[Jim]

I seen a use car at a Go dealership, it was priced at about $10,000. I went back to see it again and a sales person said it was at the Super Sale in the Pepsi Center parking lot. I went there and the car was priced 2,988 more. The sales man at the Pepsi Center was very nice and explained to me that the extra cost was for advertising, renting the Pepsi Center, cost of gas and driver to get it there and back.

[Amir]

The reason is based on the fact that there is no regulation for the used car industry; dealers can price and promote anything they possibly could want. However, dealers tend to advertise cars at a certain price, then try to sell for higher upon meeting with the dealership. I find that highly unethical and it only ruins the industry's reputation more. Especially our situation right now; you cannot get away with these things. We stay away from those "secret" price additions. It's better to sell a devalued car and profit very little than to lie to customers.