TRUE pricing


Okay, some very very sincere guy is looking at the camera and talking to you on your TV. He claims that he used a service that told you the true price that people paid for their car, and if you used the same service, you could save a lot of money and avoid all the hassle by using them.


Before you get sucked into what I believe is a human adaptation to a “bug zapper”, consider the following things:

  1. All cars have to be sold through dealers, so the service refers you to a dealer to buy.  Since when does employing a “middleman” get you a better deal?

  2. The dealer has to pay the broker a fee (like $400) if he sells you the car, truly. If the dealer has to pay the broker $400, couldn’t he just sell you the car for $400 less without the broker?

  3. The lowest price deals may also have included the lowest trade-in value or the highest interest rate and payment. Raw price tells you nothing. A low base price may be part of a bad deal.

  4. They say that they will be able to tell you what others paid.  Does that worry you as it does me? I do not want anyone sharing my financial data with anyone, no matter what it is.

Well, in short, that is my true feeling about online car brokers.

Shop carefully when buying a car, demand transparency and put all the pieces together before you buy. Consider price, trade-in value and financing. That is the only way you will be able to get a good deal on your car.

It’s true.