Know the Warning Signs Before You Sign the Deal

When you’re in the market for a vehicle, it’s easy to fall in love with a car’s look, features, or feel. But before you make a purchase, it’s important to ask: Is the price fair? Some sellers inflate prices using tactics that can catch even savvy buyers off guard, whether you’re shopping at a dealership or browsing listings online. Knowing how to spot these can help you avoid overpaying.

Watch Out for Dealership Price Padding

Dealerships are businesses; part of their strategy is maximizing profit on each sale. That often includes building in extra markups beyond what a vehicle is actually worth.

Here’s how they do it:

• Add-ons You Didn’t Ask For: Dealerships often add products like paint protection, nitrogen-filled tires, window tint, VIN etching, or fabric protection to the vehicle and include them in the sticker price—sometimes without clearly disclosing it. These add-ons often have a low actual value but a high price tag.
• Market Adjustment Fees: Some dealers tack on “market adjustment” or “dealer markup” fees, especially on popular or in-demand models. This is simply extra profit and has nothing to do with the car’s actual value.
• Low Inventory Excuse: A dealer might claim the car is more expensive due to limited supply or global shortages. While supply issues can affect pricing, that doesn’t always justify a huge markup. Check other dealers or regions to see how common the car really is.
• Pre-installed Dealer Accessories: Floor mats, roof racks, upgraded wheels, or cargo organizers might already be installed when you view the vehicle. These are then presented as part of the deal, but you may not need or want them.

Comparing Price to Market Value

One of the easiest ways to tell if a car is overpriced is to compare its asking price to its market value. Use tools like:

• Kelley Blue Book (KBB)
• Edmunds
• NADA Guides
• CARFAX Value Tool

These sites give you a fair market range based on the car’s year, make, model, mileage, condition, and location. If the asking price is far above this range, you’ll want to question why.

Watch for “Certified Pre-Owned” Overpricing

Certified Pre-Owned (CPO) vehicles are used cars that have passed a dealer or manufacturer inspection and often come with extended warranties. While that adds value, some dealers use the CPO label to raise the price significantly—even beyond what a similar non-certified car would cost with a separate warranty purchase.

Tip: Compare the price of CPO cars to similar models without certification. Make sure the added warranty and inspection justify the markup.

Be Cautious of Monthly Payment-Based Sales

Some dealerships advertise vehicles with “affordable” monthly payments, hoping buyers won’t question the total vehicle price. In reality, they may stretch the loan term or charge a higher interest rate, masking an inflated sale price.

What to do instead:

• Focus on the total cost of the car.
• Review the full breakdown, including interest, fees, and loan term.
• Get pre-approved financing to compare offers.

Tricky Advertising Tactics

Some dealerships list vehicles online at lower prices than what’s actually available. Once you arrive, they may say that the car has already been sold and steer you toward a more expensive one, a practice known as bait and switch.

Or they might list the vehicle without dealer fees included—adding hundreds or even thousands to the final cost.

Always ask for an out-the-door price, which includes everything: taxes, fees, documentation charges, and dealer-added extras.

Inflation of Vehicle Condition and Features

Dealers may describe a vehicle as “fully loaded” or “like new” when it lacks premium features or has signs of wear. A car listed as having leather seats might actually have leather-trimmed fabric, or an “advanced safety package” might just be standard cruise control.

How to verify:

• Review the original manufacturer window sticker, if available.
• Research what features come standard vs optional for that model and trim level.
• Inspect the vehicle in person and test all listed features.

When Dealing with Private Sellers and Non-Traditional Sources

While the majority of overpriced cars are found at dealerships, there are things to watch for with private sellers and non-traditional platforms:

Private Sellers:

• May overvalue their vehicle due to emotional attachment.
• Might compare their car to top-of-the-line dealer pricing.
• Could fail to consider needed repairs when setting a price.

Buy Here Pay Here Lots:

• Often charge significantly more for high-mileage or older vehicles.
• Relying on financing rather than fair pricing, targeting buyers with poor credit.

eBay and Online Auctions:

• Cars might have hidden damage or undisclosed problems.
• Shipping fees and auction costs can add to the final price.
• No chance to test-drive unless it’s local.

Always have a third-party mechanic inspect a vehicle before purchasing from a private seller or online source.

Trust the Research, Not the Car Sales Pitch

Before committing to any car purchase, take the time to compare prices, ask questions, and calculate the long-term cost. Just because a car looks perfect on the lot doesn’t mean it’s priced fairly. Armed with the right tools and awareness of pricing tricks, you’ll be much more likely to drive away with a deal that makes sense.