6 Red Flags To Watch Out For at Car Dealerships

How do you know you’re at a sketchy car dealership? Often, there are red flags all around you. Some of these can be obvious, while others are more subtle but still indicate you’re at a dealership that embraces shady practices to make a sale. And that could end up costing you money in the long run.

GOBankingRates spoke to three car professionals to determine what telltale signs to watch out for at an unscrupulous dealership. Your wallet will thank you for not falling victim to these red flags at car dealerships.

If something sounds too good to be true, it probably is, and this adage is applicable to car prices. 

Buyers who see cars for sale at dirt-cheap prices should flag this on their radar rather than rush into making a purchase. Geoff Cudd, consumer advocate at FindTheBestCarPrice.com, said this could indicate hidden issues or future costs associated with the car. 

Michael Sensano is the sales manager at Apple Truck and Trailer, which sells and leases used trucks and trailers out of Auburn, Massachusetts. In addition to keeping your eyes peeled for unrealistically low prices, Sensano said buyers should be wary of any “huge markdowns” available at the dealership. He said this is a common sales tactic that masks hidden fees added on at the last moment.

You found a car you’re interested in buying, but the dealership or car dealer refuses to let you take it for a test drive. 

Cudd said this is a major red flag. The lack of a test drive prevents you from assessing the car’s condition firsthand. It can also indicate there’s something wrong with the vehicle that the dealer doesn’t want you to discover.

What’s the behavior of the car dealer like? Are they pushing you to buy on the spot? Do they avoid answering any questions you have about the vehicle? These are all red flags to be mindful of.

You’re under no obligation to make a same-day purchase, especially if you don’t feel comfortable and lack important information. 

“Reputable dealers will give you space to think over major buying decisions and will provide transparent information about the vehicle’s history and condition,” Sensano said.

It’s critical for potential buyers to know the vehicle history before buying a car. Michael Douglas, managing director and head of dealer operations and credit for Chase Auto, said some of the big issues to watch out for include any accidents, water damage, missing repair history and failed inspections. 

If a dealership is reluctant to provide a vehicle history report, Cudd said this may indicate that the dealership has not been transparent about the car’s past.

A pre-purchase inspection is a must for anyone buying a car to check the vehicle’s interior and exterior. During an inspection, Douglas recommended checking under the hood for warning signs like leaks or rust and inspecting the car’s frame and bodywork for any visible dents, scratch marks or paint damage. Other key parts of the vehicle to review during an inspection are its underbody, mirrors, lights and windshields.

Should a dealership refuse to allow a third-party inspection, Cudd said buyer beware. A lack of inspection is a red flag that may indicate the vehicle has problems that could lead to expensive repairs.

Buyers who research the type of car they want to buy should extend their due diligence toward checking out online reviews for car dealerships they’re planning to visit. Reviews from customers can usually be found on platforms like Yelp and Trustpilot.

As you’re reading through these reviews, take note of any recurring issues you see customers writing about in one-star reviews. Keep your eyes peeled for the dates these reviews published, as they may indicate recent customer dissatisfaction at the dealership. If you find too many poor reviews citing the same issues, like pushy sales tactics, consider visiting a more reputable dealership instead.