OMVIC Practice Test

In vehicle sales, what does "bait-and-switch" refer to?

1. A method of negotiating prices

2. A deceptive marketing practice involving low-priced advertisements and offering different vehicles

3. A strategy for evaluating trade-ins

4. A compare-and-contrast tactic for similar vehicles

The correct answer is: A deceptive marketing practice involving low-priced advertisements and offering different vehicles

The term "bait-and-switch" in vehicle sales specifically refers to a deceptive marketing practice where a dealer advertises a vehicle at a low price to attract potential customers (the "bait"), but then when the customer arrives, they find that the advertised vehicle is no longer available or is not as it was presented. Instead, the dealer offers different vehicles, often at a higher price or with less favorable terms (the "switch"). This tactic misleads consumers and takes advantage of their interest to push them towards other options that might not meet their initial expectations. This practice is not only unethical but can also be illegal, as it violates consumer protection laws which aim to ensure honest advertising and sales practices. Understanding this concept is crucial for anyone involved in vehicle sales or consumer protection, as it underscores the importance of integrity in sales processes and the potential consequences of misleading advertising.