car dealerships Archives - The Free Financial Advisor

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Have you ever been lured into a car dealership by the promise of a “free inspection”? It sounds like a win-win: you get a professional to look over your vehicle at no cost and drive away with peace of mind. But what if that free inspection is just a clever way for dealerships to get their hands on your wallet? Many drivers don’t realize that these complimentary checkups can be a gateway to unnecessary—and expensive—repairs. Understanding how dealerships use free inspections to upsell services is crucial for anyone who wants to keep their car (and their finances) in good shape. In this article, we’ll break down the seven most common ways car dealerships rob you by offering free inspections and recommending repairs you may not need. By the end, you’ll be armed with the knowledge to protect yourself and your bank account.

1. The “Urgent” Repair Tactic

One of the oldest tricks in the book is the urgent repair pitch. After your free inspection, the service advisor might tell you that your brakes are dangerously worn or your suspension is about to fail. The language is often alarming, designed to make you feel like your safety is at risk if you don’t act immediately. While some issues are genuinely urgent, dealerships sometimes exaggerate the severity to pressure you into expensive repairs on the spot. Before agreeing to any work, always ask for a detailed explanation and, if possible, a second opinion from an independent mechanic. Getting a second opinion can save you hundreds, if not thousands, of dollars.

2. Inflated Parts and Labor Costs

Dealerships often charge significantly more for parts and labor than independent shops. After a free inspection, you might be quoted a price for a repair that’s double or even triple what you’d pay elsewhere. The dealership banks on your trust and the convenience of getting everything done in one place. However, you can often find the same quality parts and certified technicians at a fraction of the cost outside the dealership. Always compare quotes and don’t be afraid to shop around. Websites like RepairPal can help you estimate fair prices for common repairs.

3. Recommending Unnecessary Maintenance

Another way dealerships take advantage of free inspections by recommending maintenance that isn’t needed. For example, they might suggest a transmission flush or a coolant replacement long before your vehicle’s manufacturer recommends it. These “extra” services pad the dealership’s bottom line but do little for your car’s longevity. Always check your owner’s manual for the manufacturer’s recommended maintenance schedule before agreeing to any additional work. If the dealership’s recommendations don’t match up, it’s a red flag.

4. Bundling Repairs You Don’t Need

Dealerships love to bundle repairs, making it seem like you need a whole suite of services when only one or two are necessary. For instance, you might go in for a free inspection and be told you need new brake pads, rotors, and calipers—even if only the pads are worn. This tactic can turn a minor repair into a major expense. Ask for a breakdown of each recommended repair and its necessity. Don’t hesitate to decline bundled services and only approve what’s truly needed.

5. Using Technical Jargon to Confuse

Service advisors sometimes use complex technical language to make repairs sound more urgent or complicated than they are. If you don’t understand what’s being recommended, it’s easy to feel overwhelmed and just agree to everything. Don’t be afraid to ask for plain-English explanations or to have the advisor show you the problem on your vehicle. A reputable dealership will be happy to explain things clearly, while a shady one will try to keep you in the dark.

6. Overstating Wear and Tear

During a free inspection, dealerships may exaggerate normal wear and tear to justify repairs. For example, they might claim your tires are dangerously worn when they’re still within safe limits, or say your battery is weak when it’s perfectly fine. This tactic preys on your lack of technical knowledge and your desire to keep your car running smoothly. If you’re unsure, ask to see the measurements or test results yourself, and consider getting a second opinion.

7. Pushing OEM Parts When Aftermarket Will Do

Dealerships often insist on using Original Equipment Manufacturer (OEM) parts, which are typically more expensive than high-quality aftermarket alternatives. While OEM parts are sometimes necessary, many aftermarket parts meet or exceed the same standards at a lower cost. Don’t be pressured into paying a premium unless it’s truly required for your vehicle’s warranty or performance. Ask about your options and do a little research before making a decision.

Outsmarting the Free Inspection Trap

The next time you see a dealership advertising a free inspection, remember that it’s often a marketing tool designed to get you in the door—and into their repair shop. By staying informed, asking questions, and seeking second opinions, you can avoid falling for these common tactics. Protecting yourself from unnecessary repairs saves you money and gives you confidence as a car owner. Knowledge is your best defense against dealership upsells, so don’t be afraid to use it.

Have you ever been pressured into unnecessary repairs after a free inspection? Share your story or tips in the comments below!

Refinancing Your Car: Here Are the Pros and Cons

Travis Campbell

Travis Campbell is a digital marketer/developer with over 10 years of experience and a writer for over 6 years. He holds a degree in E-commerce and likes to share life advice he’s learned over the years. Travis loves spending time on the golf course or at the gym when he’s not working.

car dealer's in-house financing

Dealerships that offer in-house financing – also called “buy-here, pay-here” dealers – may seem like an attractive option. They let you handle your vehicle purchase and financing at a single place, often dealing with just one or two people along the way. But are they actually a good solution? Or is a car dealer’s in-house financing always a bad deal? If you’re asking questions like that, here’s what you need to know.

Pros and Cons of Buy-Here, Pay-Here Car Financing

The Benefits of Car Dealer In-House Financing

In-house financing at a car dealership does come with some benefits. First, it’s incredibly convenient, allowing you to handle all of your purchase needs in one location. Along with squaring away your financing, the dealer can bundle in the rest of the transaction, ensuring the car price, trade-in, and all other factors are part of one straightforward equation.

Second, in-house financing can usually let you handle everything in a single day. There typically aren’t many steps between you and driving away in a new-to-you vehicle. If you need a car fast, that could make this option more attractive.

Finally, you may have an easier time qualifying for in-house financing if you don’t have good credit. Many of these arrangements are designed with those with lower credit scores in mind. Since that’s the case, it may be a more viable approach if you’re in poor credit territory.

The Drawbacks of Car Dealer In-House Financing

While car dealer in-house financing does come with some benefits, there are plenty of drawbacks, too. The biggest one is usually the interest rate, which may be far higher than you would get if you worked with a bank, credit union, or another traditional lender. As a result, you could effectively overpay for the car, which isn’t ideal.

Another drawback is that the loan terms are typically pretty strict. Missing a payment by even just one day may trigger penalty interest rates or repossession, depending on the nature of the lending agreement.

Finally, many car dealerships that offer in-house financing sell strictly older cars, many of which may not be in great repair. There are laws protecting you from serious safety defects, failures to disclose major accidents, major breakdowns beyond a reasonable level, and similar issues. However, there isn’t protection against faster-than-expected wear and tear issues or similar problems that may lead to repair costs. As a result, the car may end up costing you a lot more than you planned right away.

Should You Ever Use a Car Dealer’s In-House Financing?

Generally speaking, the drawbacks of in-house financing outweigh the potential benefits. If you have access to traditional financing, you’ll typically end up paying less in interest by going that route. Plus, the terms may be a bit more flexible, allowing you to avoid costly penalty interest rates or repossessions if you make a minor misstep.

However, if your credit is poor enough that you can’t qualify for anything else, it is a pathway to a vehicle. Just be aware of the contract terms and ensure you make timely payments. Otherwise, you may trigger penalties or repossession.

Additionally, if you’re looking at older used cars, assume that you’ll have some repair bills on the horizon. If possible, have the vehicle inspected by a reputable repair shop before purchasing. That way, you can estimate what you might need to spend in the coming weeks or months. Then, you can use that information to ensure you have enough set aside or can take it to the dealer to potentially negotiate in some repairs or get a lower price.

Do you think it’s ever a good idea to use a car dealer’s in-house financing? Have you used in-house financing and want to tell others about your experience? Share your thoughts in the comments below.

Tamila McDonald

Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.

7 Ways Car Dealerships Rob You By Offering Free Inspections and Then Recommending Repairs