Beware Bogus Advertising Slogans

At the core, most dealers aren't out to rip you off. But they employ experienced and aggressive salespeople who have a bag of tricks designed to maximize the salesperson's cut and the dealer's profit.

The adage "If it sounds too good to be true, it probably is" goes double for new-car advertising. The typical car dealer newspaper or radio ad blares out in large headlines or in high pitch why you need to rush down, right now, and buy at prices and incentives you'd be crazy not to take advantage of.

 In an ad like this, you can substitute just about any figure you like, because no matter what the total price of the car, you can make your payments come out to any figure. You can make it $50 a month if you juggle the amount you put down and the terms of the loan. And besides that simple math, the monthly payment that's enticing you could be a lease amount, which involves annual mileage restrictions and money down at the beginning or end of the lease. Or the really small print may specify a huge down payment. Even if it's an offer with nothing down, it will be based on your credit. If you don't have excellent credit, the payments will be higher.

Huge end-of-year sale/must make room for new models: Dealers love to say it's the biggest chance of the year to save the most money on a "new'' car. In some ways, they might be close to telling the truth. It might be true if you keep the soon-to-be-year-old car for seven years or more -- long enough to drive it into the ground -- and don't figure on getting much for it when you sell it. However, if you usually sell or trade in your car every two or three years, buying a year-old model could save you big time.