Car sales people are trained to sell. They do so with the intention of maximizing profit. However, you (as the buyer) need to spend according to your needs. Your goal is to save as much money as you can. It’s important that you buy a car on your terms, not the dealer’s. If you give in to their sales pitch, you’ll end up spending more than you should. Here are some car sales tactics used in dealerships.
They ask what you can afford to pay monthly
Remember that a lower monthly payment doesn’t equate to a cheaper car. In fact, the opposite normally holds true. A sales person can extend your loan terms to reduce your monthly payments. However, you end up paying a much higher interest cost, and that means paying more for the car in the end.
Avoid this trap. Never disclose what you intend to pay each month. Negotiate only for the price of the car.
They tell you that your credit isn’t good enough
This strategy is used mostly on young adults who don’t have an extensive credit history. However, minimal credit history doesn’t equate to bad credit. If you’ve never been delinquent and never defaulted, it’s highly unlikely that you have bad credit.
In any case, it’s always best to know your own credit score. Go to a bank and inquire about your financing options. Choose the financing option that benefits you the most.
When you confront the dealer, notify the sales person that you’ve already secured your own financing. You might even get the sales person to offer a better deal than the one offered by your bank.
They tell you that you won’t be able to find the car you like at the price they’re offering
This strategy is used to make you feel like you’re already getting a good deal. But never take the sales person’s word for it. Thanks to the internet, it’s very easy to research the average price paid by consumers for any car. Use the true market value as your guide to determine if you’re getting a good deal.
They tell you that everyone is buying this particular extra
You don’t really need many of the car dealer extras offered. For instance, most factory warranties are already very extensive. Some even cover up to six years or 100,000 miles. Unless you plan to keep your car for longer than that, you don’t need an extended auto warranty. Save up and drop the pricey extras.
They claim that a particular detail is “non-negotiable”
Aside from taxes, registration, licensing and destination fees, everything else is negotiable.
Sign up on the box at the right for further assistance in buying an economy car.
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