In the previous post, we have already listed out 2 common mistakes that new car buyers always face. They are firstly not having a backup plan for financing and secondly, not knowing who to deal with at the dealership. Today we are going to discuss another 3 more things that you need to take note of.
How to buy a car like a pro from a car dealer
3. Negotiating on the monthly payments.
This is the most obvious sleight of hand that the dealers will use to conceal the truly inflated price that you are paying. Monthly payments are a result of the negotiated price of the car. It follows that the better the price of the car the better your monthly payments will be.
First, comes the negotiated price. Then comes everything else. By the way, most dealers will settle on making a few hundred bucks from the deal. If you are buying a new car you should know what dealer invoice is. If it is a used car, then keep in mind that the dealer paid wholesale for the car and will be will eventually settle on making a couple hundred over that just to make a sale.
Lesson: Do not negotiate on monthly payments.
4. Falling prey to the expensive add-ons
Back-end profit. That is the term given to the expensive items that you will be presented at the close of the deal when you are exhausted and not thinking too clearly. The person in charge of closing your deal, “The Financer”, will make you believe that you cannot live without these things. Remember this: There is nothing that they will offer that cannot be bought the very next day for substantially less. The most outrageously priced add-on is the extended warranty.
I have witnessed people going to extremes haggling over the price of the car only to throw on way too much on an extended warranty. If you really want to have the extra peace of mind then remember, that the cost of the warranty is extremely negotiable. Not once in all my years of buying cars have I ever seen a dealer fail to bring the cost down substantially after we said “no” to it. Other items that they will try and upsell you on is window etching, fabric protection, rust-proofing and overpriced security systems. Most of these are nearly worthless and cost the dealer next to nothing. They are all highly negotiable.
Lesson: Know beforehand that you will be presented with expensive add-ons. Say “no” to them and watch the price drop.
5. Losing control of the process
Dealers are trained in the art of manipulation. The entire process from start to finish is set up to make you feel out of place. From the suit coats that they wear, the code language that they speak, the forms that they have you sign and the psychological leverage that they regularly employ are all designed to make you powerless in the process. What buyers forget is that they have all the power. The dealer needs you way more than you need them. After all, there are many dealers to choose from.
The simplest way stays in control is to have a plan with very specific parameters regarding price, how you expect to be treated and what the extras are that you want on the car. Also, have a Carfax in hand. Then remember the 3 most important techniques. They are: get up, turn around and walk out. The power of having this strategy in your plan is that you will take away their biggest leverage.
Lesson: Have a definite plan and if things do not go according to it, simply walk away.
Now you have it, the top 5 mistakes to avoid when making a deal with the car dealers. If you are looking for more convenient and safer options when purchasing a car, speak to one of our Car Source expertise.