Buying a Car? 5 Things You Shouldn’t Tell the Salesperson
July 10, 2008 by Miranda Marquit
Filed under Finance
Buying a car is a process fraught with pitfalls. Say the wrong thing, and the salesperson can see how to corner your, and get you to pay a little bit more. Or a lot more.
If you want to get a better deal when buying a car, here are 5 things to avoid telling the salesperson unless you absolutely have to:
- What monthly payment you’d like. It seems counterintuitive not to tell the car salesperson what sort of monthly payment you want. But consider this: The salesperson can get you in a longer loan. Say you only want a monthly car payment of $250. If the salesperson gets you into a new car with 72 month financing, that’s going to cost you a lot more than buying used with 48 month financing. You’re still only paying $250 a month, but the added payments — and the interest you pay on the longer loan — can mean an overall difference of thousands of dollars.
- You really like the car. Don’t wear your emotions on your sleeve. You don’t want to let the salesperson know how much you like a car. This lets them know that you probably won’t walk away, making you an easy mark for the old “We-ell, someone was just in here and seemed really interested in it. If you like it that much…”
- You really need the car. Do you need personal transportation quickly? It’s fine to think that, but don’t tell the car salesperson. Why? Because that’s a clue in that you may not be too particular about the deal, and may not look at the paperwork and the terms too closely. And it is an excuse for additional fees as the salesperson offers to “help” you get quick financing and move the deal along. Besides, the desperate party is always at the disadvantage in these types of transactions.
- You have a trade in. If at all possible, you should bring up the trade in after you’ve talked price a little bit. Or, better yet, have pretty much decided on a price. And don’t tell your car salesperson that you have the vehicle with you. They’ll ask for the keys and hand them off for someone to look at the car. Meantime, they’ll quote you a higher price so that the trade in doesn’t impact them as much. If the salesperson asks whether you have a trade in, be enigmatic: “I’m not really thinking of trading in right now, but I might.” Likewise, hold off on mentioning if you plan to pay in cash. Dealers get kickbacks and commissions on loans as well. So dealers prefer you to pay with financing. Gets them more money. Mention cash after you have agreed on a price. Most car salespersons assume that you will pay with financing, so they don’t ask if it will be a cash sale.
- You’re concerned about your credit. Most car dealerships will find a way to finance anyone. Don’t tell the car salesperson that you are concerned about your credit. Since the dealership benefits from loans made through its financing department, telling the salesperson that you are concerned is an invitation for confirmation. “Because of your credit, we can’t offer you the best rate…” Instead, get pre-approval from a bank or credit union ahead of time. Know what you qualify for, and your interest rate. And use it to negotiate. If the car dealership doesn’t offer you what you want, you have other financing in place.
Do you have any tips for negotiating when buying a car?
image source: Miranda Marquit
your articles are always useful and interesting too, thanks miranda this is good advice for anyone buying a car. How about linking and entering the competition I’ve put up for creative people like you
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As a former car guy, I noticed that almost everybody shopped backwards. Tip-
Don’t go to your neighborhood dealer 1st!
Go last.
Last dealer always wins!
Stay in your neighborhood. You will eventually need service. Service that is close to home!!
Joel Libava
Thanks, Donna! I’ll be sure to check it out!
Thanks for the tip, Joel. I like the idea of buying local, and doing it by starting out and working in! That you can give your neighborhood dealer the best chance of make the sale.
Miranda, You get it! You get it!
Joel
Do you knwo Sean Kelly?
He is another b5 er
I “know” him through B5 :)
I have also learned that the best time to buy a car is at the end of the month, when the salesperson is trying to make his/her quota for the month. The absolute BEST month-end is December. It’s slow and the dealers are trying to get rid of inventory at the end of the year.
Thanks for sharing! That sounds like a good idea. Makes the car dealership the desperate party, rather than you…
i would just like to chime in on this topic..not as a former car guy, but as a current car guy…only in a perfect world the “strategies” or “tips” that you have provided work.
lets start with your number 1. payment…the reason you should tell the salesperson what you have budgeted for a monthly payment is so they know not to show you a 30 or 40 thousand dollar vehicle if you can only budgeted a 250 dollar payment..that would tell me to show you a used vehicle from the get go and not waste everyone’s time.
2.)you should let the salesperson know how interested in the vehicle you are, or how much you like it. lets say that you kinda like the vehicle but you would really like it if it had say running boards, or a dvd player..let that sales person know that so they can work those items in the deal for you. AGAIN IT MAKES IT EASIER FOR EVERYONE!!
3.)if you do need a transportaion quickly you shouldn’t with hold that info from the salesperson. tell the salesperson what you need and why and let them show you what they have..if it fits your needs and budget then its a win win..
4.) here is another article telling you not to tell about the trade..i do not agree with this, and here is why. people do not want to come out of pocket any to buy a car. so what do they do? they finance sales taxes, tag fee’s..etc,so when they trade that vehicle back in they have the negitive equity from the depreciaton,plus the taxes and tag fee’s etc..so if you are upfront about the trade the dealership can work the figures to “hide” your negitive equity. AGAIN BEING UPFRONT IS THE BEST AND FASTEST WAY TO BUY A CAR!
5.) credit unions are a great way to get preapproved, but there are pro’s and con’s to everything. here are just a few bad reasons to finance with credit unions. credit unions will can attach the car loan to your savings and checking account so if they wanted to take your money out at anytime to pay the loan they can. they also reserve the right not to release title’s to paid off loans till all loans are statisfied. (if you have more than one with them) those are just a few.
FOKES THE DAYS OF THE DEALERS MAKING THOUSANDS OF DOLLARS ON CUSTOMERS ARE GONE! MARKUP IN CARS ARE NOT WHAT THEY WERE, IN MOST CASES MARKUP FROM INVOICE TO MSRP IS ONLY IS 7-9 HUNDRED DOLLARS IN YOUR CHEAPER CARS AND 1800 ON AVERAGE ON MOST OTHERS. EVERYDAY I HEAR THAT IT TAKES TOO LONG TO BUY A CAR. IT TAKES THAT LONG BECAUSE OF THE GAME PLAYING THAT GOES ON WITH HOLDING INFORMATION LIKE YOU ARE BEING TOLD TO.