10 Red Flags to Look Out for at a Car Dealership
For residents of Lousiville, KY, buying a car is often viewed as one of the most dreaded tasks, and a bad dealership experience can make it even worse. Sometimes, it can be hard to know whether or not you’re dealing with a trustworthy car dealership.
Here at Mike’s Car Store, you know we always have your best interest at heart. To help you avoid getting taken advantage of, here are ten red flags to look out for that should send you running for the hills!
1. The Price is Too Low
If a car's price seems too good to be true, it probably is. Dealerships may list unusually low prices online just to lure you in. These low prices can be due to aged inventory, or worse, they might come with hidden conditions, like financing through their preferred lender or having a trade-in. Always double-check why the price is low and read the entire listing to catch any sneaky fine print.
2. No Pricing on the Website
A dealership that hides its prices behind a "call for pricing" or forces you to submit personal information just to see the cost is one you should avoid. This tactic is often used by dealerships that work with subprime buyers, and they might make up a price once they know your credit situation. Be wary of additional dealer markups (ADMs) and look elsewhere if pricing transparency is missing.
3. Won't Give You the Out-the-Door Price
Any dealership that refuses to give you the out-the-door (OTD) price is likely playing games. In this digital age, you should be able to get all pricing details — including taxes, fees, and other costs — over the phone, through email, or by text. If a dealership insists you come in for those details, it's a red flag. Control the process and get the numbers before you step on their lot.
4. Push for a Credit Application Early
Dealerships may try to get your credit application early in the process to size you up and judge your financial situation. If they’re asking for your credit info before you’ve even decided on a car, they’re likely trying to take advantage of you, especially if they think you have less-than-perfect credit. Stand your ground and only submit a credit application when you're ready to make a purchase.
5. "Now or Never" Price Tactics
If a dealership says the price is only good for today or tries to rush your decision with a deadline, take it as a warning. Outside of manufacturer rebates, there’s no reason for a price to suddenly expire unless they’re trying to pressure you into a hasty decision. If you're not ready, walk away and watch them call you back later with the same (or better) offer.
6. No Vehicle History Report on Used Cars
A reputable dealership will always provide a vehicle history report on any used car. If they refuse, there’s a reason. It could be due to accidents, salvage titles, or other significant issues they don’t want you to know about. Only do business with dealerships that offer transparency with Carfax or AutoCheck reports.
7. No Third-Party Inspections Allowed
If a dealership refuses to let you get a third-party inspection on a used car, it’s a major red flag. Either they haven’t inspected the vehicle themselves, or they’re hiding something. Always insist on an inspection, and if they say no, walk away.
8. Poor Dealer Reviews
While it’s normal for any business to have a few bad reviews, consistently negative feedback is a huge warning sign. Take the time to read through both the positive and negative reviews to get a full picture of what doing business with the dealership is really like. Google, Yelp, and DealerRater are great places to check.
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9. Payment Packing
This occurs when a dealership bundles extras like warranties and gap insurance into your monthly payment without your knowledge. It's illegal in many places and an unfair practice. Always ask for the "base payment" — your payment without any add-ons — and review the terms to ensure nothing extra is being slipped in.
10. Rate Hostage
If a finance manager offers you a lower interest rate only if you purchase extended warranties or other products, they’re breaking the law. This practice is called rate hostage, and it’s illegal. If this happens, stand firm and call them out on it.
Mike’s Car Store is Your Trusted Louisville Used Car Dealer
Being aware of these red flags can help you have a much smoother car-buying experience. If you encounter any of these, it’s best to run for the hills and find a dealership that values transparency and fairness.
As a Lousiville, KY dealership run and owned by the #1 watched Car Salesman on the Planet, you can trust we know how to get you the best deal on a used vehicle and be as transparent as possible in the financing process. We’re here for you before, during, and after the sale of your car. Even if you’re working with another dealer, we’re committed to protecting our customers. Browse our inventory of high-quality used vehicles today at Mike’s Car Store.
