linvillegorge
New member
There's an article on Edmunds.com by this title that is very helpful, but here are some tidbits I have to offer. I recently left the car sales business to pursue another opportunity. If you have any questions, post them here and I'll try to answer them.
Advertising:
Don't expect to get the advertised deals anywhere. These are usually based on a certain amount of money down, trade figured in, perfect credit, and that you are eligible for all the rebates. In other words, it's the perfect scenario. It won't happen.
Rarely if ever will a dealership actually have a "sale." The bottom line they will accept for a vehicle will not change. They advertise "sales" to get customers in. Often times, they will mark used vehicles up prior to the sale so that they can show you perceived savings. The exception is when the dealership is trying to meet criteria for bonuses, then you can find some deals.
Don't let a salesman convince you he cares. He doesn't! He will continue to contact you and make an attempt to gain your loyalty and get you to make recommendations. If he was good, make recommendations and give him the first chance to sell you on your next purchase; however, don't feel any sense of loyalty to him or the dealership - this is exactly what they want. Repeat customers are the ones who end up paying the most because they have more of a tendency to trust the salesman and the dealership.
On the lot:
First of all, do not get emotionally attached to any vehicle. This is exactly what the salesman wants to create a sense of urgency for you to buy. Remember, there are ALOT of these vehicles around, this is not the only one and there will be others! Emotions will cloud your judgement and make you act on impulse. You will end up with a vehicle you are unhappy with and/or pay too much.
Don't get talked into options you don't need. Compile a list of options you want before shopping and don't let a salesman convince you that you need all the bells and whistles.
Negotiating trade:
Dealerships almost always hold back at least 10% of what they are willing to pay when they desk their first offer. Never take the first offer! Make sure you know your vehicles's Blue Book and Edmunds values. Don't let them sell you on the NADA value which is more dealer friendly.
Don't let them talk you into believing your trade is worth less. They'll try to tell you that it has scratches, or worn seats, too many miles, etc. But, do some research, see what your vehicle is worth and don't accept less.
The value they show you for your trade is almost always inflated. Figure up all the numbers in the deal and you will see this. In essence, they have lied to you about the amount they are giving you. Call them out on this and use it to your advantage.
The deal:
Most dealerships use the "trade plus" system to show customers the numbers on a deal. This is extremely misleading!
For example, the salesman will return with a sheet of paper that lists the MSRP, then subtract all rebates, discounts, etc. At the bottom, it will say that they are willing to take your trade + X amount for their vehicle TODAY.
The first offer they bring you, they're asking MSRP. They are willing to take substantially less.
Rebates will save you money, but require you to finance through the manufacturer and they'll get they're money back there. Shop other financial institutions and you may find an interest rate that will save you more money than the initial rebates.
In "trade plus" the payoff amount for your trade and taxes and tags are not included. Add this to the amount that you'll have to pay.
DO NOT focus on the amount they list. They use "trade plus" to show you a small number. Figure up all the costs including payoff and taxes and tags to find the real number.
Never let a salesman know how much you want to spend or how much you can afford to spend. Guess how much you'll be paying if you do?
Do not get anxious.
Take control of the situation. You make the final decision on whether or not to purchase. They are at your mercy. Do business on your terms, not theirs. If you're not getting the deal you want, get up and threaten to walk out; they'll panic. If you still don't get the deal you want, walk out! There are other vehicles out there and they'll often contact you with a better deal and you can start the negotiation process again from there.
I'll think of more things and add them.
Advertising:
Don't expect to get the advertised deals anywhere. These are usually based on a certain amount of money down, trade figured in, perfect credit, and that you are eligible for all the rebates. In other words, it's the perfect scenario. It won't happen.
Rarely if ever will a dealership actually have a "sale." The bottom line they will accept for a vehicle will not change. They advertise "sales" to get customers in. Often times, they will mark used vehicles up prior to the sale so that they can show you perceived savings. The exception is when the dealership is trying to meet criteria for bonuses, then you can find some deals.
Don't let a salesman convince you he cares. He doesn't! He will continue to contact you and make an attempt to gain your loyalty and get you to make recommendations. If he was good, make recommendations and give him the first chance to sell you on your next purchase; however, don't feel any sense of loyalty to him or the dealership - this is exactly what they want. Repeat customers are the ones who end up paying the most because they have more of a tendency to trust the salesman and the dealership.
On the lot:
First of all, do not get emotionally attached to any vehicle. This is exactly what the salesman wants to create a sense of urgency for you to buy. Remember, there are ALOT of these vehicles around, this is not the only one and there will be others! Emotions will cloud your judgement and make you act on impulse. You will end up with a vehicle you are unhappy with and/or pay too much.
Don't get talked into options you don't need. Compile a list of options you want before shopping and don't let a salesman convince you that you need all the bells and whistles.
Negotiating trade:
Dealerships almost always hold back at least 10% of what they are willing to pay when they desk their first offer. Never take the first offer! Make sure you know your vehicles's Blue Book and Edmunds values. Don't let them sell you on the NADA value which is more dealer friendly.
Don't let them talk you into believing your trade is worth less. They'll try to tell you that it has scratches, or worn seats, too many miles, etc. But, do some research, see what your vehicle is worth and don't accept less.
The value they show you for your trade is almost always inflated. Figure up all the numbers in the deal and you will see this. In essence, they have lied to you about the amount they are giving you. Call them out on this and use it to your advantage.
The deal:
Most dealerships use the "trade plus" system to show customers the numbers on a deal. This is extremely misleading!
For example, the salesman will return with a sheet of paper that lists the MSRP, then subtract all rebates, discounts, etc. At the bottom, it will say that they are willing to take your trade + X amount for their vehicle TODAY.
The first offer they bring you, they're asking MSRP. They are willing to take substantially less.
Rebates will save you money, but require you to finance through the manufacturer and they'll get they're money back there. Shop other financial institutions and you may find an interest rate that will save you more money than the initial rebates.
In "trade plus" the payoff amount for your trade and taxes and tags are not included. Add this to the amount that you'll have to pay.
DO NOT focus on the amount they list. They use "trade plus" to show you a small number. Figure up all the costs including payoff and taxes and tags to find the real number.
Never let a salesman know how much you want to spend or how much you can afford to spend. Guess how much you'll be paying if you do?
Do not get anxious.
Take control of the situation. You make the final decision on whether or not to purchase. They are at your mercy. Do business on your terms, not theirs. If you're not getting the deal you want, get up and threaten to walk out; they'll panic. If you still don't get the deal you want, walk out! There are other vehicles out there and they'll often contact you with a better deal and you can start the negotiation process again from there.
I'll think of more things and add them.
