With the demand for used cars in Kenya surging, the supply in the global market has gone down significantly owing to the shortage of micro-chip used in new vehicle manufacturing. This has seen many dealers capitalise on this shortage to swindle buyers.
Car dealerships have hatched carefully crafted tricks that rip off motorists, whether in a showroom or even online. Unsuspecting buyers end up falling to the tricks only to realise later that they were scammed.
The cases of odometers being rolled back and switch advertising have dominated the car market in the country, making motorists fall prey to such dealers.
Kenyans.co.ke highlights some red flags one should be on the lookout for when buying a vehicle from used car dealerships.
Higher Financing Costs
This trick is manifested when one negotiates for a fair price for a used car and then leaves the dealership with little profit on the sale price. Some dealers may use that opportunity to try to make money through financing and other sources of revenue especially when the buyer does not have the amount in full.
With in-house financing, the dealer will typically shop your loan application to several lenders to see what interest rates you qualify for.
Most motorists fall into this trap thus end up spending more than the expected amount.
Extended Warranties
Most cars come with a warranty for the first one to three years. During this period, manufacturers somehow anticipate some technicalities.
After the factory warranty expires, they are backed by a third party underwriter. But third party underwriters are never useful to motorists.
Experts argue that extended warranties are more expensive to finance than just saving for normal repairs. With most motorists acquiring used cars, they fail to understand the high cost of extended warranties in their cars.
They, thus, end up spending more money to finance these unnecessary costs.
Financing To Meet Your Monthly Payment
Kenyans buying used cars make one big mistake when meeting car dealers, they disclose the amount of money they are willing to spend every month to pay for making purchases.
Salesperson after learning the monthly budget use tricks to reach that amount while at the same time making the most profit possible.
The most used trick is raising the auto loan terms by a year. This common tactic makes motorists pay the loan for an extended time thus proving to be a bad deal.
Being Rushed
Dealers trick most motorists that the deal they are being offered is the best and that another buyer is interested in the same car.
Being hoodwinked that is the best deal ever, they end up panic-buying and getting a very poor deal.
Spot Delivery Scam
Dealers make money on delivery costs. They allow potential buyers to go with the used car before the payment has been made.
After a few days, the dealer calls in telling a buyer that the loan has fallen through and the car needs to be returned or it will be repossessed.
Extra Optional Costs
One thing most buyers fail to recognise is that rustproofing, undercoating, and paint sealers sold by auto dealers are wasted extras one should not buy.
Dealers install these options once the price has been negotiated. With the additional options, they end up spending more than the negotiated amount.
Most motorists are advised to avoid negotiating those additional options when acquiring used cars.
To avoid those tricks, it is advisable to consult an expert and even negotiate for some time before making the last decision to walk away with the car.
