How to tell the true story about google ratings for car dealers and how to spot the "bandits"
About this episode
Lenny Lawson dives into the often-misleading world of Google ratings for car dealerships, exposing unethical practices like paid reviews and deceptive pricing tactics. He emphasizes the importance of scrutinizing one-star ratings to uncover a dealer's true reputation. Listeners learn how to navigate common traps, such as the Foursquare negotiating tactic and the dangers of spot deliveries for those with bad credit. Lenny shares practical advice on obtaining clear quotes and understanding dealership fees, urging consumers to be vigilant and informed when buying a car.
Email Lennie at [email protected]
addendums
"...when you see a dealership that has massive addendums on their vehicles where,..."
Addendums are extra costs that a car dealership might add on top of the original price of a car. They can make the car more expensive than what you first saw advertised.
Addendums are additional fees or charges added to the MSRP (Manufacturer's Suggested Retail Price) of a vehicle by a dealership. These can include dealer markups, additional options, or other fees that increase the final price of the car beyond what was initially advertised.
MSRP
"It says that you can buy it for, let's see, MSRP $23,760. There's a discount of $6,709, gets it down to $17,051."
MSRP is the price that the car manufacturer suggests you should pay for a new vehicle. It's a starting point for buying a car, but the final price can be different.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends for the vehicle. It's often used as a baseline for pricing negotiations and can differ from the actual sale price.
disclaimer
"Well, then you scroll down to the disclaimer, which practically nobody does. Oh, what is the disclaimer? That's the fine print."
A disclaimer is a note that gives important information about something, like a car price. It often tells you about extra costs or conditions you need to know before buying.
A disclaimer is a statement that limits the responsibility of the seller or provides important information that may affect the buyer's decision. In car sales, it often includes additional fees or conditions that apply to the advertised price.
fine print
"You know, with the large print, give the fine print, take it away. I don't think that's in proverbs, but it probably should be."
Fine print is the small writing in ads or contracts that has important details. It's easy to miss, but it often has key information that you need to know.
Fine print refers to the small text in contracts or advertisements that contains important details or conditions. It's often overlooked but can include crucial information that affects the terms of a deal.
dock fee
"Well, there's about $1,000 dock fee, processing fee. Let's see, protection package, marketing margin, and nitrogen."
A dock fee is an extra charge that car dealerships might add to the price of a car. It's meant to cover the costs of getting the car ready for sale, like transporting it and preparing it for customers.
A dock fee is a charge that dealerships may add to the price of a vehicle to cover the cost of preparing the car for sale, including transportation and handling. This fee can vary significantly between dealerships and is often not included in the advertised price.
processing fee
"Well, there's about $1,000 dock fee, processing fee. Let's see, protection package, marketing margin, and nitrogen."
A processing fee is an extra charge that car dealerships add to cover the costs of handling paperwork when you buy a car. This fee can be different from one dealership to another.
A processing fee is a charge that dealerships may impose to cover administrative costs associated with the sale of a vehicle. This can include paperwork, title transfers, and other clerical work. Like dock fees, processing fees can vary widely.
protection package
"Let's see, protection package, marketing margin, and nitrogen. So, these are things that are added to the price of a car."
A protection package is a set of extra services or products that car dealerships sell to help keep your car safe from damage. This can include things like special coatings for the paint or warranties that cover repairs.
A protection package typically includes additional services or products designed to protect the vehicle, such as paint protection, interior protection, or extended warranties. Dealers often offer these packages at a premium price, and their value can vary.
nitrogen
"Let's see, protection package, marketing margin, and nitrogen. So, these are things that are added to the price of a car."
Nitrogen is a type of gas that some car dealerships use to fill tires instead of regular air. It can help keep the tires inflated longer and may reduce the chance of blowouts, but not everyone thinks it's necessary.
Nitrogen is often used to inflate tires instead of regular air. It can help maintain tire pressure longer and reduce the risk of tire blowouts. Some dealerships offer nitrogen inflation as part of their service packages, but its benefits can be debated.
marketing margin
"What about something called marketing margin? What's that? Or sometimes it's called market value adjustment."
Marketing margin is the extra amount a dealer adds to the price of a car. It helps them make money even when they offer discounts.
Marketing margin, also known as market value adjustment, refers to the additional markup that a dealer adds to the price of a vehicle. This allows the dealer to offer discounts on the vehicle while still maintaining their profit margin.
dealer fees
"...anything added back other than taxes, tags, registration, and a processing or doc fee, you're just not gonna go to that dealership..."
Dealer fees are extra charges that car dealerships might add when you buy a car. They can include things like paperwork fees and other costs that aren't part of the car's price.
Dealer fees are additional costs that a dealership may charge on top of the vehicle's price. These can include processing fees, documentation fees, and other charges that are not typically included in the advertised price of the car.
registration fees
"...including tags and registration and all that, so that they could see what they're really paying for the car."
Registration fees are the costs you pay to officially register your car with the government so you can drive it legally. These fees can change depending on where you live and what kind of car you have.
Registration fees are charges that vehicle owners must pay to legally register their vehicle with the state. This process ensures that the vehicle is recognized by the government and allows the owner to drive it on public roads. These fees can vary by state and vehicle type.
Formula One
"...there's this box that has this really cool Formula One garage with two Formula One race cars, and Henry just loved it..."
Formula One is a type of car racing where very fast cars compete in different races around the world. The cars are built with the latest technology and require skilled drivers to handle them.
Formula One is a premier international auto racing sport, featuring high-speed cars that compete in a series of races known as Grands Prix. It is known for its advanced technology, engineering, and the skill of its drivers.
spot delivery
"This is called a spot delivery. And here's what's gonna happen."
Spot delivery means you can take the car home even if the dealer hasn't finished all the paperwork. But be careful, because if the financing isn't approved later, you might have to return the car.
Spot delivery is a practice where a dealer allows a buyer to take possession of a vehicle before the financing or paperwork is fully approved. This can lead to complications if the financing falls through after the buyer has taken the car home.
extended warranty
"Let's say you really wanted an extended warranty. Nope, that's going away because they can't get it financed."
An extended warranty is like extra insurance for your car that covers repairs after the original warranty ends. It can save you money if something goes wrong later on.
An extended warranty is a service contract that provides additional coverage for repairs and services beyond the standard warranty period of a vehicle. It can help protect against unexpected repair costs after the manufacturer's warranty expires.
interest rate
"...cut the interest rate because I'm not paying $624 a month for 84 months at 17%."
The interest rate is what you pay the bank or lender for borrowing money to buy a car. A higher interest rate means you'll pay more each month and overall.
The interest rate is the percentage of a loan that a borrower must pay back in addition to the principal amount. In automotive financing, this rate affects the monthly payment amount and the total cost of the vehicle over the loan term.
monthly payment
"...because I'm not paying $624 a month for 84 months at 17%."
The monthly payment is how much money you pay every month for your car loan. It includes the money you borrowed plus interest.
The monthly payment is the amount a borrower pays each month to repay a loan. It includes both principal and interest, and is determined by the loan amount, interest rate, and loan term.
loan term
"...I'm not paying $624 a month for 84 months at 17%."
The loan term is how long you have to pay back the money you borrowed for your car. Longer terms mean smaller monthly payments but more interest paid overall.
The loan term is the length of time over which a loan is to be repaid. In automotive financing, common terms are 36, 48, 60, or 84 months, affecting the monthly payment and total interest paid.
bad credit
"...I may have bad credit and I was born at night..."
Bad credit means you have a low score that shows lenders you might not pay back money you borrow. This can make it harder to get loans or make them more expensive.
Bad credit refers to a low credit score, which can result from missed payments or high debt levels. It can make it harder to secure loans or result in higher interest rates.
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