🚩Car dealerships may request credit applications before allowing a test drive, but this is not necessary and is a red flag.
🚩Be cautious when car dealerships charge reconditioning fees above the advertised price.
🚩Tying selling, or linking lower interest rates to the purchase of additional products, is illegal and should be avoided.
Do dealerships require credit applications for test drives?
—No, dealerships do not require credit applications for test drives. Requesting a credit application before a test drive is a red flag.
What are reconditioning fees?
—Reconditioning fees are additional charges added by dealerships for the cost of reconditioning used cars. It's important to be cautious and consider these fees when evaluating the total cost.
Is tying selling legal?
—No, tying selling is illegal. Dealerships cannot link the purchase of additional products to lower interest rates on financing.
00:01A customer expresses interest in test driving a car at a dealership.
00:07The salesperson requests a credit application from the customer, raising a red flag.
00:18The salesperson explains reconditioning fees, which should be evaluated when considering the total cost.
00:36The salesperson ties selling additional products to lower interest rates, which is illegal.
