what does it mean when a car dealer tries to sell on first day

vii Min Read | Sep 24, 2021

"What practice I accept to do to get you into a car today?"

If you're like almost Americans, that sentence alone is enough to make you lot cringe. Information technology's the stereotypical sales tactic of the used auto salesman. It might be the starting time thing you hear when you stride onto a car lot, especially toward the end of a month or sales quarter. And information technology'southward the showtime sign that you should probably hop right back into your car and go detect some other dealer.

"The biggest thing to watch out for with used car dealers is people who are more concerned with selling you lot a auto than finding out the specifics of your situation," says Simon Lawrence, a used car dealer in Nashville.

Early in Simon's career, he worked with dealers who used every trick in the book to make a auction—whether or not the sale made sense for their customer. When he recently opened his own dealership, he knew that he wanted to do things the right way, to avoid the tricks of the trade that plow off and so many potential customers.

Dave's easiest money-saving tip: Encounter if you're over paying for car insurance.

With fall nigh here and dealers looking to clear 2019 models off their lots, now is a great time to become a bargain on a used car. Make certain you're prepared for these sales tricks Simon says you're most guaranteed to hear.

i) The Hard Sell

This is the salesperson that merely won't get out yous alone. As a result, you automatically go on the defensive.

Typically what happens is a dealer starts the sales pitch, and the customer says, "I'chiliad only looking." But the client commonly isn't "but looking"—they probably want to buy. "They just don't want the dealer to know," says Simon, "considering they don't want to accept to deal with the difficult sell."

Ownership a car is a big decision, and so never brand a purchase just because you lot feel force per unit area from an overaggressive sales guy. Simon adds that upfront pricing is a good way for dealers to deal with this tension. "In that location's no haggling over toll. A lot of people don't want to take to go back and along with a salesman and and then do the aforementioned with a manager."

With upfront pricing, the customer's job is simple:Do some research, know the price, and purchase the car or walk away.

2) Selling on Payment Instead of Toll

When a salesman pops the question, "What kind of payment are yous looking for?" before y'all've even talked about the price of the motorcar, that's a major blood-red flag.

"If you're focused on payment, they will stretch the term as far as possible to get you a 'payment' you're happy with, even though you've overpaid on the motorcar," says Simon. "They also make money when you finance, as much every bit $3,000 in some cases.A great salesman should never begin with payment. Instead, they should be polite in addressing your budgeting concerns."

If you're on the Dave Ramsey plan, you know automobile payments are not an option.And so don't let a salesman distract you lot from your plan and focus on payment instead of overall price. Discover a auto you can afford and pay for information technology … with cash.

three) The Trade-In Flim-flam

Some dealers will make you think you're getting a skilful deal on your merchandise-in value while ripping you off on the car y'all're buying. "A lot of times people come in to buy a car, and they are focused on the trade-in value of their current car," says Simon. "Dealers know that. And then they lie about the trade value."

An example: Yous know the value of your merchandise-in is effectually $5,000, and you lot want to buy a car that's priced at $20,000. The dealer says they'll "give you a deal on your trade" by offer $vii,000. No-brainer, right? Of course you lot should have that deal, right?

What you lot don't know is that the $xx,000 car you're buying is really merely worth $17,000. Then you lot're getting a "good deal" on one mitt while getting ripped off on the other paw. "A lot of people come in thinking,What tin can I get for my trade? as opposed to,What is the car I'm getting worth?" says Simon.Proceed both of these values in listen when y'all're talking with a dealer nigh a trade-in.

4) Bad Information

Some other common tactic with dealers is toanswer a question with misleading information. For example, you're looking at a automobile on the lot and yous notice i of the doors is a little off-center and has some slight cracks in the pigment. It looks as if it'due south been in an blow, but maybe the vehicle history report didn't indicate that and the salesman didn't mention it.

You lot ask the salesman about it, and he responds, "Oh, that's no large deal. We can bear on that up for you without a trouble." He doesn't look into the situation any more and doesn't repent for not having mentioned it up front.

"The salesman betrays trust past giving them the wrong respond," says Simon.The reply? Know your stuff. "You can do more homework on the internet and find out more information than a salesman knows almost a car."

v) Subconscious Fees

The fees aren't actually "hidden," merely well-nigh dealers aren't going to publicize all the extra costs—like processing fees. Simon explains information technology this way: "Let's say you observe a automobile for $ten,000. Y'all concur on that cost, and you're happy with the car and gear up to purchase. Then you go inside and realize yous have a $799 processing fee, a $235 title and registration fee, and a $49 licensing fee tacked on."

"It's all profit," says Simon. "Justthey disguise that turn a profit into fees and don't tell y'all almost it until you're sitting down to pay for the car.In their defence, dealerships do pay a lot of coin for accounting and licensing professionals to handle taxes, titles and registration. But some dealers have fees a lot higher than others, so keep that in mind."

"The fees are okay, but it's not okay to try and keep them under wraps until the terminate," he said. "Every service has a price with it, but just make certain the dealer is upwards-front. Ask about the fees and so you don't get blindsided at the concluding infinitesimal."

6) The Waiting Game

If you lot've always bought a car from a dealer, chances are you've been a victim of the waiting game. All the layers of direction and approval can cause bug for a potential buyer.

"Yous have a salesman, a team leader, a sales manager, a general sales managing director, and then a full general manager," says Simon. "You lot accept all these levels of leadership, so someone takes the keys to your possible merchandise-in, and you take to go through three or four people if you lot want to go them dorsum."

If yous do make a trade or buy a auto, you go to another area of the dealership where you have to wait again. "You wait for financing, paperwork … you just look," he said. "And then you're exhausted and y'all just desire to go out of at that place and yous're more than likely to concur to something that's a bad idea."

If y'all experience like you're being run through the waiting game wringer, then take the initiative and brand the dealer start moving—or call the deal off.Don't agree to something because you but want to go out of there.

Now for the Skillful News

All of these tactics build a lot of friction between the dealer and the customer, which doesn't create a fun experience when you want to go buy a car. "The salesman mistreats the customer, and the customer doesn't trust the salesman. So y'all basically but have two people 'beating each other up,'" Simon adds.

The adept news is there are car dealers who do things the right manner. Talk to your friends, family members and coworkers who have had adept experiences buying a machine.

But, no thing when or where yous go, keep your eyes and ears open for these sales tactics, andmake sure you get a proficient deal on a car that fits your situation.Find out how to become the best deal on a car you beloved!Download our free Motorcar Guide today!

Near the author

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain command of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our fiscal advice through 22 books (including 12 national bestsellers) published past Ramsey Printing, as well as 2 syndicated radio shows and x podcasts, which accept over 17 million weekly listeners. Learn More than.

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