Push, pull or drag a scam?

Question

I have never bought a car before, but I see those deals sometimes where they offer you 3 grand for a total junker as a trade-in...what kind of scam is that, or is it one? My grandma is thinking of cosigning for me, and she has a 900 credit score (perfect), so does that mean, I have more room for negotiating a deal?

Answer 1

Each dealership has their way of dealing with an ad like that, but here is a common example:

When the ad's read guarantee $3,000 for trade, look for the fine print that says not applicable with other offers. If you are buying a car that has $3,000 in rebates and your trade is worth $1,200 ACV (Actual Cash Value) then they can give you the $3,000 as advertised and basically take the trade for nothing! You were already entitled to the rebate.

Others will run a program similar to ad's that say "No Credit Refused!"....which means nothing more than you can fill out a credit application...it doesn't mean you can actually get a loan. In this instance, the dealership will show on paper that your car is worth $3,000 but inflate the price of the new one to compensate.

There are plenty more, however don't be fooled by them. If your trade is only worth $500, then you will get $500 real money applied towards your new loan. I hope this helps you.

Answer 2

Medved Push Pull Or Drag

Answer 3

This is just one of a thousand ways dealers use to get buyers onto their property so they can pressure them into buying a new car. All they have to do is limit it to a high profit model like a fully loaded minivan, offer zero discounts and lousy financing and then make you a GREAT DEAL on your trade. Buying a new car is like a fully inflated balloon. The balloon can be squeezed on one end or the other or even right in the middle to give it the appearance of being smaller that it really is. But in the long run the amount of air inside the balloon never changes. It's the same thing with new car pricing. They can give you a great discount off the MSRP or a super low interest rate or a really good trade in allowance but they aren't going to give you all three. It just depends on which end of that balloon they need to squeeze the hardest that gets you to sign on the dotted line. In the end the money you spend isn't gong to change.

Answer 4

This Site Might Help You.

RE:
Push, pull or drag a scam?
I have never bought a car before, but I see those deals sometimes where they offer you 3 grand for a total junker as a trade-in...what kind of scam is that, or is it one? My grandma is thinking of cosigning for me, and she has a 900 credit score (perfect), so does that mean, I have more room for...

Answer 5

This is what Big Mike Naughton Ford in Denver says on their website http://www.medved.com/push-pull-drag.

NOTE THE ASTERISKS (*).

How it works:

• Applies towards the purchase of *Certified Pre-Owned vehicles only
• Push it, Pull it, or Drag Your Trade In: Seriously, as long as the owner possesses title and registration we will accept ALL vehicles regardless of condition. We have even accepted motorcycles, boats, and trailers!
• Show me the Money: A $3,500 TRADE IN ALLOWANCE is applied towards the purchase of a *Certified Pre-Owned vehicle. If your trade is worth more, we will give you more.

Why would you pay someone $3,500 for a high mileage, older vehicle?

With the $3,500 trade allowance everyone wins. The customer is able to get rid of an aged, technologically outdated vehicle while upgrading into a newer, safer, and more reliable one. Plus the $3,500 towards the purchase of a newer pre-owned vehicle is a great leverage point when financing. Medved wins because we get to sell a car.

Finally, the roads—and the environment—win because they are getting cleaned up! Cars get old. As they age they begin breaking down, rusting, decreasing in efficiency and safety, and in general polluting more. Medved’s Push, Pull, or Drag program aims to get those vehicles in particular off the road, never to pollute again.

(The fine print -- jp)

*Vehicle must be $10,000 or more, under 100,000 miles, and nine years of age or newer. All applicable vehicles are Medved Medallion Certified and have undergone a rigorous inspection.
* Depending on condition and ability to pass certification, some PPD vehicles may be resold. In the event vehicles are wholesaled, Medved is not responsible for what happens or how they are used after the fact.

Answer 6

It's not really a scam as much as it's a numbers game. If your trade is worth $500.00 in real money the dealer may show you $3,000.00 on paper. but the reality is that the remaining $2,500.00 is added to the sale price. It's like when people trade in vehicles that they owe more on then the vehicles are worth. The negative equity is added to the sale price. O.B.T.W. go to your grandmothers bank and find out how much they are willing to loan and at what interest rate before you go shopping. Then make your best deal and compair rates before you sign anything.

Answer 7

When dealers offer high trade in for junkers they don't lose anything. They are simply using advertising ploys to get people into the dealership.

Here's an example: You trade your junker in, and it's running. They take a look at it and determine it's to far gone for them to repair! They call up a junk man or a low level dealer and get rid of it... Doesn't matter if they get their money for it or not. Their profit is in the car you just bought!

Dealers that advertise a big trade-in's or special rebates don't lose money... That's not the name of their game. Fact is: They make more money on used cars these days than on new.

If anyone writes in and says I'm wrong, they're a dealer!

Answer 8

Medved Used Cars

Answer 9

It's not a scam so much as it is a gimmick. They have padded the price of the vehicle so that they won't lose on the deal in case your trade is a real piece of crap. There is always room for negotiation.

Answer 10

well I buy a new Honda odyssey in 2007 the sticker p was $31,000.00 but was December 23 of 2007 I lower the $ of the car to 25900.00 and wen I was ready to sing they advertise push tow or pull 5000.00 not before, so I make them take 5000.00 more of the sticker I pay 21900.00 for