10 Car Buying Tips Dealers Don't Want You To Know
Most potential car buyers often believe they are well-equipped to negotiate a car purchase. The sad news being there are specific aspects that car dealers successfully manage to either camouflage or hide from buyers. Here are ten car-buying tips dealers don’t want you to know.
1. Poor Financial Skills
A sales executive is no financial planner – and he’s not your friend. In other words, the dealership personnel is not the right person to discuss money-related issues with. In fact, some are even not very familiar with the car models they’re selling. They typically know enough details to sell a car, particularly to the novice buyer. An accountant, bank loan expert or a relative or friend with a financial background are ideal for your money-related conversations.
2. Sales Receipts are Gimmicky
The invoice price is not reflective of the car’s true market price; it basically sets up the platform for negotiation. Anything above the invoice price is dealer profit. Also, dealerships don’t reveal the factory incentives they get from automakers for better sales numbers.
3. Dealer Loan Options are Anti-Buyer
Financing firms work with auto dealers for mutual profits. Dealerships, therefore, recommend certain loan options to buyers. Make your own loan arrangements, or research the rates a credit union or your bank would offer so that comparisons against dealership-offered loans can be made.
4. Trade-In Price is A Farce
The price deduction you get when trading in an old car for a new purchase is based on wholesale prices and not real market values. If you privately sell your existing vehicle, you’re likely to fetch a higher sales proceed.
5. Multiple Negotiation Avenues
You can negotiate not just on the car’s price, but also on rebates, interest rates, trade-in values, bank fee, lease rate, warranties, car accessories, etc. – something the dealership may not fancy disclosing as it’ll cut down its profits.
6. No Urgencies
Last-day deals don’t exist. Car dealerships thrive on increased sales numbers and they, therefore, employ such selling tactics.
7. Month End
Dealerships have targets to achieve and the month-end is often their period of desperation. Car manufacturers look into dealer performance and the number of cars sold during a period is a major performance determinant. In other words, grabbing a great deal in the last few days of a month or quarter is highly probable as dealers are less focused on profit margins and more concerned about manufacturer sales targets.
8. Don’t Negotiate on Out-of-Stock Cars
It’s much easier to bag a great deal on in-stock cars as that’s the inventory dealerships are keen on clearing out. If your desired car is not on the floors, don’t waste time negotiating.
9. The Car Salesman is a Trained Liar
No, not every sales executive concocts up statements, but most do. For instance, a statement such as “no other dealership in town can match our prices” is typically not true. Know this for a fact before signing up for the deal. Everything a dealer says is false unless it’s in writing.
10. Cash Deposits are Risky
Cash deposits aren’t recommended as it may then get tough to recover the money if the transaction doesn’t get through. If required, pay with credit cards as the charges can be later disputed. If your credit history is in a soup and banks are not willing to issue you a card, perhaps you must postpone your car purchase plans.