Recently, some of my clients from Car Source told me that the car dealers that they met previously are notorious for being aggressive and untrustworthy. I told them, of course, there are some genuine sales people who actually care but they are very few.
As a professional car buyer, I am in the dealer showrooms on a regular basis. I consistently see genuine and kind hearted buyer (who are not familiar with the car industry), fall into the dealer “trap”. People seem to know they are going to be taken for their money and even though they know this they still enter into the lion’s den.
When I see people with their heads in their hands I always think to myself “if they only knew the basic rules to dealing with the dealer”. This is why, today we would like to educate all our readers and clients who intend to buy a car, how to avoid the top 5 mistakes most people make when buying a car from a car dealer.
Top 5 Mistakes Most People Make When Buying a Car From a Dealer
- Not having a backup plan for financing
The other day I was making a purchase for a client who had a credit score of 725 (not bad but not great). As the paperwork got processed, the dealer threw a completed contract with 6.99% percentage rate on the table. Luckily I had advised my client that this would happen and we told the dealer that we were already pre-approved at another bank for a much lower rate. We did not have to back up that statement.
He just shredded the contract, changed the APR to 1.9% and without even blinking through the new contract in front of us. This change took less than 1 minute and yet the savings were substantial for my client. The key is that you will need to know your credit score to be able to have some leverage in the deal.
What to take note: Have a backup plan for financing in case the dealer plays you for a chump.
2. Not knowing who to deal with at the dealership.
Most people will waltz into a dealer without realising that who you work with will make the biggest difference in the negotiations. The way to get the best deal is to know which person at the dealership will be able to close your contract without getting some upper management person to “approve” the deal. It is a complete waste of your time unless you get to the correct person right from the beginning.
Otherwise, you will be at the mercy of someone who has no authority to cut through the bullshit. The solution is to simply call beforehand and ask to speak to a manager. Once you speak to them make an appointment with that person. This is far better than showing up on the lot and getting hit up by some lot person who has the least tenure on the lot. Ask for a manager. Demand it.
What to take note: Find the key person with expertise. The right person will save you precious time & lots of money.
In the next post, we will discuss 3 more mistakes that people commonly face when dealing with the car dealers. If you want to meet credible car dealers in Singapore, contact us today.