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New Car Buying - Tips to Help You Get the Best Deal
I had been thinking about buying a car for two years. After another $1000 of repairs on my 1994 Buick Roadmaster (purchased new) with over180,000 miles, it was time. In the past, when I sat in a new car (at dealers and at auto shows), the comfort did not match my Buick's "sofa like" seat so I put off buying. During the past 24 months I determined the make and model but not the color; thus one Friday my plan was to check the colors at a local dealer. Later, the best price would be obtained via online bidding - a proven way to obtain a competitive price.
After arriving, the salesman took some basic information and asked how much time was available. My response was 15 to 30 minutes. Four hours later, I left without buying because the "deal" was on a car with the light interior not the dark that was my preference. In retrospect, what transpired in those four hours was a demonstration of classic car sales techniques at their best. This realization came to light a few days later when watching a movie where the sales manager highlighted the tricks of the trade, he gloated on how to manipulate the customer. After the movie, I said: "this is exactly what happened to me". Of the 14 techniques used during my four-hour ordeal, all were referenced in the movie (except in the movie a secret microphone captured the conversation between husband and wife after the salesman left the room - this did not occur). The amazing thing is that I did not realize the sales tricks during the process. What were the techniques?
First, in the parking lot the salesman turned his back and said follow me to the office and I did. Next, he obtained keys for the model of interest and positioned the car so I could sit in it. Although, I have driven the model before, he insisted it was no problem. After 15 minutes we returned to the office to say goodbye, how naive.
The third technique was offering a deal that could not be refused. He quoted a trade offer two times the value of my car and eight thousand dollars off the list price! My thought, this is too good to be true. My response, need to check with the wife. No problem, he offered the use of his cell phone, technique four, remove obstacles. Now the hook was set, he had a possible buyer. After driving a second car of my preferred color, we were back at the office.
My trade was the next topic. He filled out the paper work to determine the value via an online wholesale system. He offered one thousand more than the value which somehow made me feel good even though it was one thousand less than his first offer. This was trick five. Keeping my keys, trick six.
It was next revealed that the eight thousand discount first quoted was on a demo with 4,000 miles; thus we discontinued negotiations on that car, rather, the focus shifted to the one I just drove. He said they wanted to close the first sale of the day to get things rolling, thus a big discount, trick seven. The next question was what price would close the deal; He asked me to sign on a scratch pad how much I would pay, trick eight. Any amount was ok, if it were unreasonable, he would fight with his manager for me, technique nine, the salesman was on my side.
The manager arrives. He says he would be losing money on this deal, " it cost more to produce the car than you are offering". Obviously, unreasonable offers were not acceptable. He then starts the negotiations with the msrp and drops a thousand; our prior negotiations were lost somehow, trick ten. Since the car has more options than requested, a lecture on their value follows. When I request a basic version, the manager actually gets mad implying how much better discount is available with options, trick eleven - intimidation. After the manager leaves, the salesman uses trick twelve, ten thousand down with three year payments and list price. This came out of the blue since from the beginning the premise was a cash deal. However, it must be a standard practice.
The manager returned with a better offer, his lowest possible price. Actually he is losing money and will have to take the loss from his department budget, trick thirteen. Technique fourteen, a one-time offer, is highlighted by the question from both sales staff: do we have a deal at this price? By this time, I am not sure if the deal is reasonable since so many numbers have been discussed. The manager places a gong on the table to announce the first deal of the day. I am holding the pen to sign when my gut says no, wait for the exact car - do not compromise on the desired interior; and, do not succumb to these pressure tactics. Somehow I manage to obtain my keys and leave as an exhausted individual.
My story ends when I purchase the exact car I wanted from another dealer at a good but not great price, the negotiation involved an offer and a counter offer via email. Since my nerves were shot; I could not tolerate any more hassle or pressure. If acknowledging these crafty and subtle techniques will make the job of buying a car easier for someone, then my experience has some value.
Jim Johnson, July 2007
New Car Buying Advice From an Ex-Car Salesman!
Car dealers can be pretty intimidating when you're getting ready to buy a new car. For most people a new car is probably the second biggest purchase you'll make in your lifetime. So I was a bit nervous in the beginning. I figured the dealer would try to pull one over on me because I'm a women (and blonde, don't laugh) so I decided to get some real advice from someone who new what they were talking about. I went to a former car salesman and fortunately for me he had no problem revealing all the secrets the dealers used to manipulate the average person. He told me things that really gave me an edge up on the dealers like how not to let the sales agent out talk me. How to plan through my negotiating before I even enter the dealership. He told me things like...
*Why I shouldn't hide my trade in until we got to negotiating my new car purchase. Sales agents are willing to give on certain aspects of the sale if they know they may be able to make additional cash on your trade-in.
*To get the best deal for your old car you need to sell it yourself to an individual. A lot of people would rather not go to the trouble of placing ads and selling your old car yourself but that's how you are going to get the most money for your trade-in.
*How to get the best financing rate (saved me tons!) Before you even leave the house, find out what your credit score is. Many times the dealer financing is not lowest rate you can get depending on your credit score. So you if know that up front you know what rate you should be accepting.
*How the "no hassle pricing" system works and how it actually makes you pay more. There are many fees that are added on to the price of the vehicle after you agree upon a price. Make sure all the fees are already accounted for when you agree upon a price.
*How to save on new car accessories. These are something that can "negotiated" to complete the sale if you've made your plan before you walk into the dealership.
*What a "documentation fee" is. This is a fee that covers the cost of paperwork and documentation. These fees vary from state to state. So find out whether your state has standardized fees or it is determined by the dealership so that you know what that fee should be.
*The best time of week and year to buy a new car. The best time of week to buy a car is mid-week and the best time of year is toward the end of the year.
*Lifetime Warranties. That's usually only if you own the car and if you've done certain maintenance items by certain dates, etc. etc. etc. so make sure you read the fine print on that "Lifetime Warranty".
You can also limit the time you have to spend at the dealership by using the internet to research the kind of car you want. You'll save time, energy and money once you become comfortable using online buying resources that most dealerships have available. The world wide web is a great place to help you easily determine what you want, the features that you want on your new car, where you can find it, and what you should expect to pay for it. You no longer have to deal with high pressure auto dealers. You can actually get the dealers competing for your business before you ever leave home!
So if you're looking for new car buying advice do your homework before you ever enter the dealership. You'll be glad you did!