Car dealers use a variety of tricks to get the most profit from buyers. Knowing what to look for can save you both money and aggravation.
TIP: Advertisements serve only one purpose: to get you to the front door.
Dealers use the loss leader concept to get you in, then sell you something else. Make sure you read the small print on any ad and understand what's included in the pricing. Print out any advertisements that apply and bring them with you.
TIP: Understand the Four Square model before you go to the dealer.
The Four Square process is used by many dealers to help the salesperson figure out your hot buttons and keep you off balance. The squares include selling price, trade-in value, monthly payment and down payment. They will try to identify which of these is most important to you, make that one the most attractive, and then pad the profit in the other squares. It's easiest to manipulate a buyer who is focused on the monthly payment.
TIP: Get pre-approved for a loan before you go shopping.
This is one of the best car buying tips at a minimum, know what your credit score is and check online to see what interest rates you will get from various lenders. Your bank or credit union is a good place to start but be aware that some of them offer dealers a chance to mark up the interest rate on leases and loans. Dealers may advertise very low interest rates, but those are usually reserved for the very best credit scores and for short time periods. Make sure you are comparing apples to apples.
TIP: If the Four Square is laid out for you, politely stop the salesperson and ask for full disclosure.
When you request this, the dealer is supposed to stop using the Four Square and lay out the deal in a clearer and easily understood way. If they don't, you should leave - this often gets the dealer to cooperate. But if not, you are probably better off going somewhere else.
TIP: Standing up and walking towards the door is one of your strongest plays.
It may not work more than once or twice, but the dealer knows that if you leave he is much less likely to sell you a vehicle. Threats don't work as well, but if you physically get up and leave you can gain additional leverage in the negotiating process.
TIP: Advertisements serve only one purpose: to get you to the front door.
Dealers use the loss leader concept to get you in, then sell you something else. Make sure you read the small print on any ad and understand what's included in the pricing. Print out any advertisements that apply and bring them with you.
TIP: Understand the Four Square model before you go to the dealer.
The Four Square process is used by many dealers to help the salesperson figure out your hot buttons and keep you off balance. The squares include selling price, trade-in value, monthly payment and down payment. They will try to identify which of these is most important to you, make that one the most attractive, and then pad the profit in the other squares. It's easiest to manipulate a buyer who is focused on the monthly payment.
TIP: Get pre-approved for a loan before you go shopping.
This is one of the best car buying tips at a minimum, know what your credit score is and check online to see what interest rates you will get from various lenders. Your bank or credit union is a good place to start but be aware that some of them offer dealers a chance to mark up the interest rate on leases and loans. Dealers may advertise very low interest rates, but those are usually reserved for the very best credit scores and for short time periods. Make sure you are comparing apples to apples.
TIP: If the Four Square is laid out for you, politely stop the salesperson and ask for full disclosure.
When you request this, the dealer is supposed to stop using the Four Square and lay out the deal in a clearer and easily understood way. If they don't, you should leave - this often gets the dealer to cooperate. But if not, you are probably better off going somewhere else.
TIP: Standing up and walking towards the door is one of your strongest plays.
It may not work more than once or twice, but the dealer knows that if you leave he is much less likely to sell you a vehicle. Threats don't work as well, but if you physically get up and leave you can gain additional leverage in the negotiating process.