Top Warning Signs of a Bad Dealership

For the most part, used car dealerships are honest workplaces just trying to sell you the best car possible. If you set aside your cynicism and try to work with most dealerships, you’ll find that the vast majority are trustworthy. However, that doesn’t mean you should be ignorant of the warning signs. Rest assured, the stigma surrounding used car dealerships didn’t come from nowhere. The bad ones are out there, and you should be aware of the warning signs. If you are looking for used car dealerships in Toronto ON, here are the main warning signs to watch out for that tell you to take your business to a more reputable dealership.

#1. Lackluster/non-existent warranties

When it comes to buying a used car, warranties are your friend. Most states in the U.S. require that used car dealerships offer some kind of warranty service, at least 30-days long, and the warranty should ensure that the car has or would pass a safety and emissions inspection. Also, keep a good eye on your dealer when they offer the warranty. They should be itching to get to the warranty, or at least completely casual about offering it. If they show disdain about having to put it forward, that means that the dealer is hiding something.

#2. “Buy here, pay here”

If you have bad credit, then it can be tempting to look for a dealership that provides its own financing. The problem stems from the fact that if you thought it was bad before, then it just might get worse if you take this route. Typically, interest rates run from 19% to 20%, and sometimes higher. The dealer will sell you an extended warranty so you can still make payments after the car breaks down. Unfortunately, by the time you’ve jumped through all their hoops, you’ll have paid thrice as much as the car was initially worth.

#3. Arbitration Clauses

In layman’s terms, an arbitration clause means that, in the case of a dispute between a client and business, the dispute would be resolved through an “impartial third party”. As you can surmise, this third party will more often than not favor the business over you. If a dealer offers you this as part of the contract, walk away.

If you want a dealership that won’t pull the wool over your eyes in the ways mentioned above or any other, then come on by to Eli Motors.

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