How often have you looked at a used car advertised online for say £ 12,995 and decided to visit the dealership to see the car? But when you arrived, did you discover that the price of the car was actually £ 14,995?
It is not unusual for used car dealers to advertise the same car at different prices on different websites, or to have a higher price at the car window and a lower price advertised on the web. There are generally two reasons for this: 1) if a customer hasn’t seen the lower price advertised elsewhere, the dealer may try to sell the car for the higher price; or 2) the dealership may claim that the car is “already downgraded,” to try and make the car seem like a better deal. This strategy is used to prevent a customer from bargaining for a lower price.
Many used car dealerships are very elusive when handling the question of “Isn’t this car being advertised for less on the internet?” Often times, the dealer will ‘suddenly remind’ that ‘it was just reduced this morning’ or make up some nonsense about ‘web-only deals’, or mutter something about how’ they haven’t had enough time to update the price in the window of the car ‘. It doesn’t really matter what the excuse is, they’re just trying it on and then trying to cover it up when they realize that you really know what you’re talking about.
The reality is that there is no recommended retail price for a used car – a seller, whether private or dealer, has the right to ask what price they want for their car. It is simple capitalism, with supply and demand determining the price. A seller is not obligated to offer you a lower price, just as a customer is not obligated to pay a higher price. It all comes down to who wants the deal the most and is willing to give up more ground, or who is better at negotiating a deal.
Although it is not illegal for a dealer to advertise the same car at two (or more) different prices, it is not exactly an example of outstanding business ethics if the price of your used car is handled as normal.
It can be more serious if the dealer refuses to sell you the car at the advertised price. We are no longer talking about a dealership failing to mention that a car is advertised and available for a cheaper price, but actually refusing to honor their own advertised prices. These days, this kind of behavior is thankfully getting weird. Most dealerships advertise their cars on classified ad websites and can easily price their used cars in seconds. In the past, a mistake in an old-style newspaper or magazine ad could not be changed once it was printed (assuming it was a genuine mistake, rather than just a dubious sales technique).
In this type of situation, you must have proof of the lowest advertised price. With online ads, it’s easy for you to find the advertised price on your smartphone in seconds, but a dealer can also change your advertised price just as quickly, so always print the ad before visiting the dealership. If you stand your ground and start mentioning phrases like “false advertising” and “noncompliance with business standards,” distributors will generally give in fairly quickly. But is this the type of dealership you want to buy your car from?