Seeing is Not Believing Part 8

Are You “Well Qualified?”

We are used to hearing the term “…for well qualified buyers…” on auto advertisements, but recently this phrase has also been appearing in advertisements for homes, mortgages, furniture and appliance ads, and elsewhere. None of these ads, except occasionally in the tiniest of print that appears for a few seconds only, explains what makes someone qualified for the special treatment or low rates offered.

We checked hundreds of online ads to discover what some of these requirements are and discovered that none of the advertisements we saw explained this phrase on the advertisement page. You had to go as far as eight clicks below the ad to discover a definition, and not all of them even provided a definition. Most offer no explanation at all. Some examples:

> “Three important factors - adjusted capitalized cost, residual value and the money factor - determine the monthly rate of a lease.”
> “See your local [brand] automobile dealer for program details and offer. This is not an offer of direct financing.”
> “Financing is simple, quick and no-obligation.”
> “Dealers set actual vehicle sales prices. See participating dealers for details. For well qualified buyers. Not all buyers may qualify.”
> “If qualified, dealer retains all rebates and incentives.”
> “Upfront acquisition fee and capitalized cost reduction with no security deposit; total net capitalized cost and base monthly payment does not include tax, license, title, registration, documentation fees, options, insurance and the like). Not all buyers may qualify.”
> “Not valid with current offer. Does not apply to prior or future purchases. Restrictions may apply. Void where prohibited.”
> “Incentives available to residents only.”

Generally, “well-qualified” can mean whatever the dealer, company, or salesperson wants it to mean as it is not a legal term, nor is it regulated by law. It may be based on a variety of factors including:
> Credit score
> Prior purchase from same store
> Prior ownership of same model
> Residency within a township or distance from store
> Trade-in
> Membership in an approved organization
> Limited time offer
> Availability of a limited stock item

It is recommended that, when you see an offer of special consideration for a “well-qualified buyer,” that you ask to see, in writing, the company’s policy regarding the advertisement. If they have no written policy, you should not trust the dealership or company and purchase the product elsewhere.