Buying a car can be exciting, but it’s also a big decision that involves spending a lot of money. Car salesmen are trained to make the most profit from each sale, which means they often use tricks to get customers to pay more than they need to. For this list, I reveal 23 things car salesmen don’t want you to know. By understanding their tactics, you’ll be better prepared to make a smart purchase and drive away with a great deal on your next vehicle.
The Four-Square Method
The four-square method is a sales technique used to confuse buyers. First, salesmen present a sheet with four boxes showing the car’s price, down payment, monthly payment, and trade-in value. Then, they quickly adjust the numbers in each box to distract you from the total cost. Moreover, this method makes it hard to focus on the actual price of the car. Additionally, salesmen use this tactic to steer the conversation away from the bottom line.
The Limited Time Offer
Salesmen often create a sense of urgency with “limited-time offers.” Initially, they might claim a deal is only available today. Subsequently, they pressure you to make a quick decision without proper research. Furthermore, these offers are usually not as time-sensitive as they seem. Taking your time to think and compare prices is always in your best interest.
The Hidden Fees
Many car dealerships add hidden fees to increase their profit. For instance, they might charge for “dealer prep” or “advertising fees.” Additionally, these costs are often buried in the contract’s fine print. Furthermore, some of these fees are negotiable or completely unnecessary. Finally, always ask for a detailed breakdown of all charges before signing anything.
The Bait and Switch
The bait-and-switch tactic lures customers with attractive offers. First, dealerships advertise a great deal on a specific car. However, when you arrive, they claim that the car is no longer available. Subsequently, they try to sell you a more expensive model. Moreover, this practice is sometimes illegal but still common. Always call ahead to confirm the advertised car is still available.
The Extended Warranty Upsell
Salesmen push extended warranties to boost their commission. Initially, they might claim it’s essential for your protection. However, many extended warranties have limited coverage and high deductibles. Furthermore, you can often find better and cheaper warranty options elsewhere. Research third-party warranties before committing to one at the dealership.
The Trade-In Lowball
Dealerships often undervalue trade-ins to increase their profit margin. First, they might point out minor flaws to justify a low offer. Subsequently, they use this low value to make their new car deal seem better. Knowing your car’s true market value before negotiations is crucial. Consider selling your old car privately for a better price.
The Monthly Payment Focus
Salesmen prefer to discuss monthly payments instead of the total car price. Initially, this makes the purchase seem more affordable. However, focusing on monthly payments can hide the true cost of the car. Furthermore, extending the loan term lowers monthly payments but increases overall interest. Finally, always negotiate based on the total price, not monthly payments.
The Emotional Appeal
Car salesmen are trained to appeal to your emotions rather than logic. First, they might compliment your taste or emphasize how great you’ll look in the car. Subsequently, they try to create an emotional connection between you and the vehicle. Moreover, this tactic can lead to impulsive decisions. Stay focused on your budget and needs, not your wants.
The Loan Markup
Many dealerships mark up the interest rate on car loans. Initially, they might offer you a rate higher than what you qualify for. However, they pocket the difference as extra profit. Furthermore, getting pre-approved for a loan before visiting the dealership can help you avoid this. Compare loan offers from multiple sources to ensure you’re getting the best rate.
The Add-On Pressure
Salesmen often pressure buyers to purchase unnecessary add-ons. For instance, they might insist on fabric protection or paint sealant. Additionally, these add-ons usually have high markups and minimal value. Furthermore, most add-ons can be purchased elsewhere for much less. Stick to your planned budget and avoid impulse add-on purchases.
The Silent Treatment
The silent treatment is a psychological tactic used during negotiations. First, after you make an offer, the salesman might stay quiet for an uncomfortably long time. Subsequently, this silence is meant to make you feel anxious and increase your offer. Also, many buyers feel pressured to break the silence with a higher bid. Stay calm and stick to your original offer if it’s fair.
The Dealer Invoice Trick
Salesmen sometimes show you the “dealer invoice” to prove they’re offering a good deal. However, this invoice often doesn’t reflect the true cost to the dealer. Furthermore, dealers receive various incentives and rebates not shown on the invoice. Additionally, the true dealer cost is usually lower than the invoice price. Focus on the fair market value of the car rather than the alleged invoice price.
The Bundled Negotiations
Dealerships prefer to bundle negotiations for the car price, trade-in, and financing. First, this makes it harder for you to track the true cost of each component. Subsequently, they can give you a good deal in one area while overcharging in another. Moreover, this tactic often results in a higher overall cost. Negotiate each aspect separately for the best overall deal.
The Manager Approval Game
The “talk to the manager” routine is often just a show. Initially, the salesman might claim they need approval for your offer. However, this is usually a tactic to make you think you’re getting a special deal. It’s also used to wear you down and make you more likely to accept their counteroffer. Stay patient and firm with your offer during this back-and-forth game.
The Rush to Sign
Salesmen often rush you through the paperwork signing process. First, they might claim they have other customers waiting. Subsequently, this hurry can lead to overlooking important details or added fees. Moreover, taking your time to read and understand every document is crucial. Don’t hesitate to ask questions about anything you don’t understand before signing.
The Undercoating Upsell
Many dealerships push expensive undercoating as a necessary protection. However, most modern cars come with adequate rust protection from the factory. Furthermore, aftermarket undercoating is often overpriced and may even void your warranty. Additionally, it’s rarely needed unless you live in an area with extreme weather conditions. Consult your car’s manual before considering this add-on.
The Credit Score Deception
Salesmen might claim your credit score is lower than it actually is. First, this tactic is used to justify higher interest rates on loans. Subsequently, they profit from the marked-up interest rate. Moreover, knowing your credit score before visiting the dealership is important. Finally, dispute any discrepancies and demand to see the credit report they’re using.
The Destination Charge Myth
The destination charge is often presented as a non-negotiable fee. However, this fee is already included in the manufacturer’s suggested retail price (MSRP). Furthermore, you shouldn’t pay this fee twice. Additionally, some dealerships try to add their own, inflated destination charges. Always verify the legitimacy and amount of any destination fees.
The False Scarcity
Salesmen sometimes claim a car is the “last one” or in high demand. Initially, this creates a sense of urgency to buy immediately. However, this is often untrue, especially for common models. Furthermore, you can usually find the same car at another dealership. Additionally, don’t let this tactic rush you into a decision. Take your time to shop around and compare prices.
The Manufacturer’s Rebate Trick
Dealerships often advertise manufacturer’s rebates as their own discounts. First, they might include these rebates in their initial offer. However, these rebates come from the manufacturer, not the dealership. Furthermore, you’re entitled to these rebates regardless of the dealership’s price. Additionally, always ask for a breakdown of the price and rebates. Negotiate the car’s price before applying any rebates.
The Spot Delivery Scam
Spot delivery, or yo-yo financing, can be a deceptive practice. Initially, you’re allowed to drive the car home before financing is finalized. However, days later, the dealership might claim the financing fell through. Subsequently, they demand you return the car or accept a higher interest rate. Moreover, this tactic pressures you into accepting worse terms. Never leave the dealership without finalized, approved financing.
The Conditional Sale
Some dealerships use conditional sale agreements to their advantage. First, they might let you take the car home while “final approval” is pending. However, this agreement often allows them to change the terms later. Furthermore, you might be forced to accept worse terms or return the car. Additionally, this tactic can put you in a vulnerable position. Finally, always insist on completing the sale with final, approved terms before taking the car.
The Test Drive Distraction
During test drives, salesmen often chat to distract you from the car’s performance. First, they might ask personal questions or tell stories. Subsequently, this tactic prevents you from focusing on how the car handles. Moreover, it’s crucial to pay attention to the vehicle’s performance and comfort. Don’t hesitate to ask for a quiet test drive to fully evaluate the car.
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