5 Things You Should Never Tell A Car Salesman
June 2nd, 2008 Posted in Eric Peters, TipsBy Eric Peters, Automotive Columnist
Some things you should never tell the guy trying to sell you a car. Such as?
1) How Much You Like The Car
Never show emotion; it’s the surest way to paying too much. It lets the seller know you really, really, really want that particular car and are probably not thinking clearly and are thus willing to overlook a lot of things — including the price — in order to make it yours.
The smart policy is to feign indifference. The car’s ok. But you’re not attached to it — and don’t mind buying a different car on another day. Maybe from someone else. If your will is weak — or you need moral support — bring a trusted friend or spouse to help keep you in line. As the saying goes, think about England (or baseball)… .
2) How Much You Can Afford To Spend
Keep that card close to your chest. Once the salesman knows your price point, he will try to steer you toward cars that cost about that much, but never less. On the other hand, if the dealer isn’t sure what you can afford or want to spend, he may be more inclined to show you some better deals, first.
3) How Little You Know About The Car
Ignorance is rarely bliss. And one sure-fire way to encourage skullduggery is to let on that you don’t know much about cars, generally — or the car you’re looking at, specifically. Keep your mouth shut — and let the salesman talk.
It’s even more important that any questions you ask sound informed and intelligent. You don’t have to be a “car guy” to do that, either. But you do have to spend a little time researching the make/model vehicle you’re looking at (along with competitor models) so that you know enough about it (and them) to not sound like a babe in the woods when you start talking with the salesman.
If you’re totally clueless about cars, bringing along a knowledgeable friend/spouse is a smart move. If you don’t have any such car-savvy friends/family members, consider a buying service. These will handle the negotiation process for you — and while there is a fee involved, you’ll know what it is up front and it’ll probably be lower than what you could have achieved on your own through “haggling” with a sales shark.
4) Never Discuss The Monthly Payment
Related to the point about not letting on how much you want to spend overall — but potentially even more damaging — is avoiding any discussion about the monthly payment.
It’s very easy for a clever salesman to get an unsophisticated buyer to focus on that Low Low monthly payment — obscuring ugly facts about the total purchase price (and interest) he’s about to saddle you with. For example, by extending a loan from three or four years to five or even six years, the monthly payment can be lowered — but the actual purchase price may have been jacked up by thousands. And you could be paying additional thousands in unnecessary interest payments, too. (This is how some unlucky people end up “upside down” — owing more in payments than the vehicle is actually worth.)
Negotiate the purchase price first — and the monthly payment will take care of itself.
5) Be Coy About Your Trade-in Plans
A common mistake some buyers make is to arrive at the dealer with their old car — and get sucked into a discussion about its trade-in value before negotiating the price of the new car. Why is this a problem? Simple. It’s an old car salesman trick to make the buyer feel he has the edge by giving him what seems like a great deal on his trade — while making up the difference on the price of the new car.
If you plan to trade, it’s smart to avoid any discussion of what your plans are until after you’ve settled with the dealership on the sales price of the car you’re buying. Then bring up your trade.
Tip: Drive to the dealership in a vehicle other than the one you intend to trade. This way, the dealer has no clue about the potential value of your old car until later on — which makes it harder for them to manipulate you over the price of the car you’re trying to buy.
Comments?
www.ericpetersautos.com
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7 Responses to “5 Things You Should Never Tell A Car Salesman”
By Denise on Jun 10, 2008
It makes me sick that there are so many ways to get screwed when buying a car that you need or want. Why do these people take advantage of the people that make up their paycheck?
By Darrin on Jun 8, 2008
You should never trade in a car. You should always sell it to an individual. The market price for individual sales is higher than trade-in price.
By Jeff on Jun 6, 2008
Leases are the toughest thing to negotiate. And it’s not just because people don’t realize that you can negotiate leases. When you purchase a car, you’re mostly dealing with 1 thing - the purchase price of the car (along with the interest rate). With leases, there are so many other variables. There’s a lease factor that’s used in place of the interest rate. There’s a whole bunch of charge which need to be added on in a certain way to calculate sales tax. It’s a very complicated situation. I developed a spreadsheet where you put in all the necessary information, and it shows you what the lease price should be.
The first time I used it, I was quote a lease price of, let’s say, $300 a month. But my calculation was giving me $260 a month. I took my spreadsheet to the dealership, and the salesperson was befuddled. He took it to his manager and the finance person, and the two of them took a 1/2 hour to review it. Finally, they came out and said that some sales taxes laws changed (which they had) and that I should be paying $270. OK, it’s $10 more a month than what I calculated, but still $30 less a month over what they tried giving me originally.
By Seth on Jun 5, 2008
I’ve used “fightingchance.com” and recommend them whole-heartedly. Check it out.
By MrBully on Jun 2, 2008
You don’t have to drive there in a different car, simply park around the corner or at least far enough away so it’s out of sight, and after settling on the price of the car you want to buy, start about the trade in.
Saves you an extra trip when the dealer wants to see the car he is getting.
By Hubcap on Jun 2, 2008
Some tips from a guy–me–who spent twenty years inside the beast.
Have a firm idea of what you want before even walking into the showroom. Do your homework and KNOW model names, accessory bundles, color schemes, engine options. Don’t show up with notes; KNOW that stuff. That more than anything will intimidate a salesman.
Use Consumer Reports to find out the *real* dealer’s cost (invoice) for a particular model. Then all you are negotiating is the dealer’s profit and the salesman’s commission.
Knowing that true invoice cost, you can have your financing done ahead of time, and you will be essentially negotiating a cash deal. Do not–ever–let the dealer finance your car; use your own bank or credit union.
Go the place you really want to buy the car from last. Do your shopping at a couple of other dealers first and try to get some written quotes. Get your best deal.
Then go to the dealer you want to buy from and say something like, “the guy over at Freeway Ford will sell me that Mustang for $xxx. Can you meet or even beat that price? I almost went for it but I really want to buy my car here because you guys are close to my work.”
No real car salesman can walk away from a challenge like that.
And don’t buy any dealer add-ons like under-coating, paint sealants, upholstery protectants, or anti-theft gimmicks. It is mostly over-priced useless crap that you will be paying interest on for the next 3 years.
By matelot on Jun 2, 2008
and don’t tell them what you’re driving now