How to Analyze Car Ads
Vehicle advertisements on the radio, television, online and in the newspaper all claim to have the perfect car for your budget. Television and radio ads often feature quick-speaking announcers who simply cannot wait to give you a deal on a new vehicle while print ads boast that the price "won't last long." The goal of these advertisements is to excite you and convince you that if you don't move quickly to purchase the vehicle, someone else will. By properly analyzing the information car ads provide, you can discover if the vehicle in question is a good buy or a financial mistake.
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Instructions
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Write down the make and model of the car. Visit Edmunds.com and plug the information into the website's True Market Value tool. This tool provides you with the actual value of the advertised vehicle--allowing you to analyze whether or not the price the advertisement boasts is a fair one. If the advertisement mentions the car's mileage, you can also access a Kelley Blue Book value estimate for the vehicle at kbb.com.
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Listen or look for disclaimers. Disclaimers in radio and television ads are typically printed at the bottom of the screen or noted at the end of the commercial. Disclaimers vary but often make references to the dealer's rights and can make the vehicle less of an attractive buy. Examples of disclaimers to watch out for are "Dealer maintains all rebates and incentives" or "Picture for illustration only."
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Search the ad for any qualifications you must meet before taking advantage of the deal. One example of a condition often found in the fine print of vehicle advertisements is "for approved credit buyers." Because a dealer can choose to set the bar as high as he pleases for credit applications, very few borrowers may actually qualify for the advertised deal or price.
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Look at other advertisements. If other dealerships offer the same vehicle at a much higher price, you can usually assume there's a catch.
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Visit the car dealership's website and look up the featured vehicle in its inventory to verify that the price is the same one listed in the advertisement. Take note of any information about the vehicle that wasn't noted in the original ad.
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Calculate the total cost of the vehicle featured in the ad. Each state charges different fees for taxes and transferring a title. Depending on the additional mandatory costs you face, a price that seems like a good deal may not appear so advantageous once you've worked out the total costs on paper.
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Tips & Warnings
If you have questions about any information not included in the advertisement or on the dealership's website, call the company before you visit the lot firsthand.
If you're buying a used car, you have the right to ask for permission to have the car privately inspected at your own expense. While this may seem like a hassle, it can save you from purchasing a car with severe mechanical problems.
Almost all car dealerships charge "doc prep fees" to prepare your paperwork when purchasing a new or used car. Some states, however, place limits on the fee dealerships can charge for preparing documents. Check to see if your state limits doc prep fees before buying a new or used car.
Most car dealerships charge additional fees to offset the cost of discounting vehicles. Watch out for such fees as "advertising charge" or "vehicle preparation" fees. These additional costs translate to pure profit for the dealership, but allow it to market vehicles at lower than normal prices.
