Things To Never Do at the Dealership

Buyers often cited “dealer negotiations” as the most dreaded part of the entire buying process. That’s probably because most buyers are unsure of what to say, how to act, etc. Here are some things you shouldn’t do at a car dealership.

Don’t Say You “Love This Car”
When you tell the salesperson that you “love that car right there” or something like it, they’ll see dollar signs, because the theory is that if you love a car, you might overvalue it in your own mind. Therefore, the best plan of action is to remove emotion from the car-buying experience totally.

That doesn’t mean you need to act stoic and unimpressed, but keep your feelings close to the chest. Let the dealer know you’re interested, but if you can’t get a good deal, be sure to tell them you’re obliged to keep looking around.

Don’t Be Flashy or Divulge What You Do
Salesmen are trying to get you to pay as much as you’re willing to pay, so if you come into a dealership acting like you have a lot of money, they’re going to take advantage of that.

The best practice is to just avoid divulging any information about yourself. Keep it mysterious, even if a salesperson asks what you do for a living (which they probably will). A dealer probably won’t up-sell a minimum-wage worker, but they’ll have no qualms if they’re dealing with a neurosurgeon.

Don’t Tell Them Your Limit On Monthly Payments
Never say something like “I’m looking for monthly payments of no more than $XXX.” Even though monthly payments are probably an important factor for you, don’t discuss this with a dealer. The first step is always to settle on a price before you enter other negotiations.

If a dealer asks you what you’re comfortable paying every month, tell them that you aren’t comfortable discussing that until you both have determined the overall price of the car. Always deal with total price before you talk about anything else, because things can get confusing otherwise.

Don’t Ask How Much You’ll Get For Your Trade-In
If you have a trade-in, do not to mention this until you’ve negotiated the deal on the price of the car you are buying. Trading in a car and buying a car are two separate transactions, and should be treated as such.

If you throw your trade into the negotiation, a dealer can leverage that to confuse you on how much you’re actually paying for the car you’re buying. Also, if the dealer knows he owes you a set price on a trade-in, it might be tough to get him to help you out on lowering the MSRP of the car you’re buying. If the dealer asks if you’re trading in, just say you’re considering it but haven’t decided.

Don’t Say “I’ll Pay With Cash” Or “I Have Financing Secured”
According to Consumer Reports, over 84% of people buying cars finance the purchase, and dealerships are hoping this is the case so they can get you to borrow through their in-house financing programs. If they ask if you’ll be financing, just say you’re considering it but are still unsure. If you do have the cash, you might get price gouged if you mention it, whereas if you keep it to yourself you can probably negotiate a better deal.

Don’t Fall For The Good Guy/Bad Guy Routine
The bait and switch is a common tactic that you might find yourself in if you’re not careful. Some salespeople might try to disarm you with humor, or they might act like they’re on your side while the manager in the backroom looks on angrily. They might even offer you a great trade-in offer or a discount on the total price of the car you’re looking to buy.

These lowball offers and inflated trade-ins are always squashed by the manager. Often times an agreed-upon number might be “lost” or “forgotten.” If the dealer refuses to honor an agreed upon price, walk. Get everything in writing, always. Remember, the dealer personnel are trying to get the best commission possible for themselves.

Don’t Allow Them To Force “Extras” Or Add-Ons
Always be on the watch for extras or add-ons to your purchase or financing. By packing “extras,” dealers can increase your car payment price by saying things like, “it’s only $40 more a month.” Over a 60-month loan, that $40 will cost you an extra $2,400. All those add-ons can add up quickly.

Check the financing and the sell-sheets closely so that you know which add-ons are unnecessary and which ones you should consider. Things you should never be charged for are doc preparation fees, fees for “customer service,” and hidden loan acquisition fees.

Be sure to check out NIHFCU’s protection programs to avoid inflated costs at the dealer.

Don’t Let Dealers’ Complaints Deter You
Always let a salesman’s complaints fall on deaf ears. Most of the arguments a salesperson will give you are completely ridiculous. For instance, they may say that you’re asking an outrageous price, and that they won’t make a single cent off the price you’re asking. They might say it’s unfair to ask them to “work for free.”

Just remember this: No one works for free. The dealership pays a minimum wage (and usually more), and as they usually make extra through commission, a salesman never works for free. Also, no matter what a dealer sells a car for, they always get a flat fee commission, regardless of price.

Your best bet isn’t to get cynical or aggressive, because that can work against you, but definitely put your foot down and don’t allow yourself to be haggled.

Don’t Let Your Emotions Get The Better Of You
It’s worth repeating. Keep your emotions hidden, if possible, during any outing at a car dealership. Of course this is easier said than done, and it’s hard to be devoid of ALL emotion, because buying a car is pretty exciting. Your best bet is to show a general lack of indifference when buying a car, and this will help you avoid being manipulated in any way.

source: hotcars.com/9-things-people-should-never-do-at-the-dealer-and-8-ways-to-get-the-best-deal/