Originally Posted by pe0n
I swear if I didn't just buy a new car I'd jump all over this!
MIAMI, Florida (CNN)
-- A newspaper advertisement for a Miami car dealership reads more like a coupon for bags of potato chips: "Buy one, get two!"
It's estimated that 900 automotive dealerships will have shut their doors by year's end.
The ad speaks to the desperation of car dealers as Big Three auto manufacturers beg Washington for billions in bailout dollars to combat sales that keep dipping to all-time lows.
"The first thing people think when they come in is, 'It's a fake ad. It's a normal car dealer ad. It's a gimmick.' But it's not," said Ali Ahmed, sales manager at Rob Lambdin's University Dodge in Miami.
To be fair, there is a catch to the buy-one-get-one-free offer: You must first buy a new Dodge truck at full retail price before you're eligible to receive a second truck for about $3,000 in tax, tags and dealer fees.
I just wanted to inform you this was a scam. Beware of things that are to good to be true. I posted this info on the Challenger side before on this. This advertising was banned in Illinois along with an investigation into illegal practices.
Here is how it works, the dealer goes out and buys a bunch of PT Cruisers for around $6000.00 with an average of 17,000 - 20,000 miles on them. Now here is where people get taken, the PT Cruiser is the free car, you get to take your pick of what he just bought at the auction. But only on the select vehicles with $10,000.00 or more of rebates/dealer cash/& mark-up.Now you buy a $40,000.00 plus vehicle with the savings of $10,000.00, but you do not get it off the deal. If you read the fine print in the add, all rebates and incentives are forfeited to the dealer. Which means he now has made a $4000.00 profit on every PT Cruiser he gave away.
Now for the KICKER!!!!
Remember when you were all enthused & excited when you received your second car?? Now you just financed the whole first vehicle that they weren't giving away. Try to trade it in 3 years when you still owe $20,000.00 plus on it and have to come up with around $12,000.00 - $15,000.00 just to trade out of it to pay off the loan because you are upside down on the loan to value of the trade. It is a ripple effect all the way until you get rid of the vehicle. Also note that some financial institutions will not give you gap insurance on a loan like that. So if it gets totalled in an accident, you're totally screwed between what the insurance company will give and what you will need to release the title to them.