Have you ever wished you “knew someone” in the car business? Buying a car is one of the most dreaded tasks that adults face. Having to face the pushy car salesman with his inability to give any hard information can be frustrating. Take it from an insider in the business, buying a car, whether new or used, doesn’t have to be cause for stress. If you arm yourself with a little knowledge you can pull out of the dealership lot without that sick feeling in the pit of your stomach.
Many consumers do not realize that every salesperson at the dealership is aware of you as soon as you pull into the parking lot. If you have spoken to someone on the phone previously, ask for this person immediately. This will prevent the entire sales staff from racing through the parking lot to attempt to sell you a car.
The salesperson has one goal, getting you to agree to buy today. One mistake that many consumers make is thinking that they have to make a decision right away. Regardless of what the salesperson tells you, you will be able to get that marked down, discounted price tomorrow, or the day after, or even next week, if the car hasn’t sold by then.
The test drive is designed to make you fall in love with the vehicle. If you are test driving a pre-owned vehicle, the first thing the sales person will do when you begin your test drive is turn on the radio. This masks any small noises the used car might make during the drive. You should insist the radio be turned off. During the test drive you should test every function of the car. Test the blinkers, the lights, the heat and air conditioning, the seats, and any other feature or gadget inside the vehicle.
Never act as if the car you like is the car that you must have. If you let the salesperson know that you love the car, he’s already planning his Hawaiian vacation with the commission from your sale. Once you’ve decided on a car and the salesman brings you in to begin price negotiations, be aware that the salesman has basically no control over what happens next. The sales manager is feeding the salesman information and he is simply acting as a messenger. To avoid the communication gab and annoyance of this, ask that the sales manager deal with you directly.
Never assume that because the sales manager tells you that the price can’t come down that he’s telling the truth. The price can always come down, maybe not as much as you would like, but you can always get a better deal that he wants you to believe. Across the United States a general rule of thumb is that the car dealership has at least a four thousand dollar mark up on used cars. This is not always the case, though the majority of time it holds true.
Negotiate at least three thousand dollars off the price of a used vehicle or do not buy it. New cars don’t generally have that much mark up in them, though you can tell them you will pay nothing higher than invoice price for the vehicle. They will still make a profit on the invoice price.
The biggest mistake made in purchasing a car is in the finance office. Many consumers just accept whatever finance rate they are given and sign on the dotted line. Be aware that the finance manager is out to make money as well, and will add as many percentage points to your actual finace charge as possible. Insist on a lower rate, always.
By preparing yourself with knowledge before you enter the dealership, you will avoid many mistakes commonly made by consumers today.
