{"id":1130,"date":"2022-12-12T18:20:00","date_gmt":"2022-12-12T18:20:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=1130"},"modified":"2023-11-25T00:18:04","modified_gmt":"2023-11-25T00:18:04","slug":"how-to-beat-the-car-salesman","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/auto-tips\/how-to-beat-the-car-salesman\/","title":{"rendered":"5 Tips on How to Beat the Car Salesman"},"content":{"rendered":"\n

If you\u2019re a pro at negotiating when buying a new car,<\/a> you\u2019re ahead of the game. For the rest of us customers, it\u2019s like going to the dentist. Consumers hate the process because we know it can end up hurting more than we thought. Shopping for auto insurance<\/a> is easy compared to buying a new vehicle<\/a>.<\/p>\n\n\n\n

The reason for this is that a good many customers are intimidated when they walk into a dealership. Will we get the best deal? Is our credit good enough to get what we want? What are the monthly payments going to be and can we make them every 30 days like clockwork? How much is my trade-in worth and will they give me a fair amount for it?<\/p>\n\n\n\n

Then, if that\u2019s not bad enough, the intimidation factor creeps in the moment you\u2019re swarmed by a half-dozen, hard sell salespeople asking you if you like the color of the model you\u2019re standing next to in the showroom.<\/p>\n\n\n\n

Unless you know what you\u2019re doing or how to beat car salesmen at their own game, they\u2019re in the proverbial \u201cdriver\u2019s seat\u201d and, as a consumer, you\u2019re just along for the ride. And, even though most of us have a pretty good idea of certain things we\u2019re supposed to do and not do when buying an automobile, it can still be a struggle \u2013 especially if you\u2019re facing a tough negotiator – to score a point.<\/p>\n\n\n\n

So, here are five common situations customers are likely to encounter the next time you enter the new-car-buying realm and some tips for handling them. How you respond can keep the conversation headed toward the best price you can get.<\/p>\n\n\n\n

1. Getting the Most for Your Trade-in<\/strong><\/h2>\n\n\n\n

Most sales reps have eyes like an eagle and can spot you pulling up to the dealer lot in your current ride \u2013 which leads them to entice you with \u2013 \u201cIs that your vehicle? Are you trading it in? Looks in great shape \u2013 we can give you $X,XXX for it.\u201d Don\u2019t be too quick to jump at his offer.<\/p>\n\n\n\n

As a point of fact, it\u2019s always best to not discuss the value of a trade-in before you settle on a price for the new purchase, but that won\u2019t stop the sales rep from trying to get the upper hand, because he knows it works from time to time. He also knows that he can artificially exceed your trade-in\u2019s blue book value to get you excited, only to make up for his apparent generosity on the purchase price of your new set of wheels. These are typical tools for sellers.<\/p>\n\n\n\n

What you may want to respond with is \u2013 \u201cThanks, that sounds pretty good and I may consider your offer \u2013 but that\u2019s separate from how we\u2019re going to price the new vehicle.\u201d<\/p>\n\n\n\n

The sales rep will throw so many numbers at you; the last thing you need is to keep track of more while you\u2019re negotiating the price. Besides, if you\u2019ve done your research, you already have the knowledge of what yours is worth and can take it or walk away from the dealership. This may help put a point in your column.<\/p>\n\n\n\n

2. Take a Look at the Factory Invoice<\/strong><\/h2>\n\n\n\n

While it\u2019s hard to buy a new automobile these days without a lot of extra costs, dealers can tack on silly fees to the window sticker that don\u2019t necessarily make sense. Many are confusing and need clarification, a challenge or, at the least, a question. That\u2019s why it\u2019s a good idea to ask the dealer to show you the factory invoice, because that\u2019s where legitimate fees are listed. You might face a little resistance at first \u2013 depending on the dealership \u2013 but, unless he has something to hide, he\u2019ll show it to you if he wants to close the deal.<\/p>\n\n\n\n

Keep in mind that in California a so-called \u201cdocument fee\u201d applies. However, unlike some other states, California regulates the fee at a flat $80. For more knowledge on fees that fall into the \u201clegit\u201d category, consumers can go to the Edmunds auto website for their guide to these fees.<\/p>\n\n\n\n

So, when in doubt about all the listed fees on the sticker, ask the dealer for a look at the factory invoice. Then, point by point, ask for clarification on each added fee.<\/p>\n\n\n\n

3. Your Monthly Payment Amount is Your Business<\/strong><\/h2>\n\n\n\n

Asking you what you can comfortably pay each month for the ride of your dreams is a tactic that has been around for ages. The minute customers agree to a monthly loan payment, the salesperson will wrap what he now knows you can afford around the final price. Remember to stick to your budget!<\/p>\n\n\n\n

Of course, a lot depends on your credit score, but don\u2019t confuse the sales rep\u2019s concern for what you can afford as an offer for credit counseling. What he\u2019s trying to do is sell you a more expensive vehicle by extending the term of the loan<\/a>, thereby lowering your monthly payments to the amount you just gave him, or he\u2019ll do it by switching you to a lease.<\/p>\n\n\n\n

Unless your credit report score qualifies you for a 0% interest rate loan that some auto manufacturers offer \u2013 don\u2019t fall into his trap. Avoid going to the dealership without having first lined up backup financing at your bank or credit union for the best deal. Once you\u2019ve settled on a price, it may even force the dealer into a position to offer you a matching or better rate. If possible, don\u2019t use the dealership for financing.<\/p>\n\n\n\n

If the salesperson hits you with this question, you may want to respond with \u2013 \u201cLet\u2019s talk about that a little later and focus on the price I can get.\u201d<\/p>\n\n\n

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4. The Negotiations<\/h2>\n\n\n\n

As mentioned, it\u2019s important to understand the tactics salespeople are likely to use when you hit the lot. It can be much like a sleight of hand magician. While your attention is over here (high trade-in value) the salesman sells you a vehicle for more than it\u2019s worth. These are the tools of selling. How does it all work? Keep these tips in mind to get the upper hand:<\/p>\n\n\n\n