Today’s credit market makes it near impossible for the average U.S. citizen to get a car loan at a decent interest rate. It’s almost always best to buy private party when shopping for a used vehicle. But when you don’t have any savings, and you can’t get a loan from your credit union, sometimes your forced to go play with the slimy little used car salesman. If that is the case, than here is some advice for shopping for that new to you car.
Looking
When you arrive at a car dealership, and the sales personal come to aid you in your time of need, ask them to leave you in peace until you find a car that interests you. The sales person is not going to follow you around and try to sell you a particular car, they are there to listen to you talk, and suck in as much information about you as possible. This tactic is used to try and squeeze as much money out of you as possible when it comes time to negotiate. When you are ready to get a greater look at the car, you can then ask for the keys to take a look around this vehicle. If you have a trade in, DO NOT at this time let them “examine ” your car, hold on to your keys.
Inspection
Have you found the perfect car? During your test drive, take the car over to an independent mechanic and pay a nominal fee for an inspection. A trusted local mechanic can give you some idea of any major mechanical defects that the laymen might not see. You cannot hold the mechanic liable for any defects that arise after the sale, but spending a little cash now could save you from spending a lot of cash for repairs later. Plus, if the sales guru is with you on the test drive, you can watch them squirm, and slither when to their surprise you pull up to an auto shop for a “look see.”
Negotiate
Ah yes the wonderful little paper that has 4 squares on it. Every dealership has their own approach to this evil little data sheet. This paper in essence, is really a “hey look how we are going to manipulate your monthly bills” sheet. Some will fill this out immediately, and some will wait to hear your life story, and then capitalize on your weakness. Either way this is just a speculation of a deal, you still have full control over the outcome. Once you have put down your first offer, the sales monkey will have to go seek approval from the manager in the back. At this time, you and your friend should step outside for some fresh air. Yes, bring a friend to keep you level, and DO NOT discuss any terms in the room. These rooms have been known to have listening devices in them, it is an old trick. When you decided on purchasing a car, you probably also decided how much you could afford on a monthly payment. With that in mind, after you discuss the purchase price, you should then discuss what you are comfortable with in monthly payments. Knock off about $50.00 from what you decided earlier for a reasonable monthly payment. This sales monger will inevitably end up getting you back up to what you decided earlier. This shows good faith to them, they feel it is a victory, and you know who the real victory lies with.
Extras
Delivery charges, titling fees, warranty’s, and all the great extra goodies that help boost their profits ARE negotiable. Refuse to pay them, if you come to a stale mate, they won’t drop them, the show some more good faith. If all the fees add up to say $800.00, than tell them you will pay this but you want another $800.00 off of the final negotiated sales price. Sometimes after market warranty’s are good thing, but not always from the dealership. Do a search for reputable auto warranty companies, and try not fiance their warranty into your loan. At some point between now, and the beginning of your negotiations they will ask you for your keys, so they can evaluate your trade in. Give them your spare car key from your junk drawer. DO NOT give them your normal keys. Another tactic used car dealers use is the “we missed placed your keys.” This is a stall tactic for them if they feel you will walk out, and not close on your purchase. Trust us it’s a Kodak moment when they have your spare, and you drive away because of failed negotiations.
Credit
Know what your credit score is before arriving at the lot. The dealer will pull your credit when you o.k. the deal. Some dealers will lie about what your credit report and score says, if you know before hand than you can catch them in a lie, and use it to your advantage.You might also be asked to give them a check to show you are serious about your purchase. You showing up at their lot should essentially show you are serious. Giving them a check is just another tactic in hopes of getting you to buy under pressure. If you must give them a check, and they won’t give it back, than cancel it.
Arming yourself with knowledge well ahead of walking in to a lot will make purchasing a used car kind of fun in a sadistic way. These business are just that. Their goal is to take as much from you while giving back as little as possible. Until you sign a contract with them the deal is not done. They cannot force you into anything, and keep that in mind. If your gut feeling says leave, then you should leave. Used car dealerships across the country normally thrive during recessions, but this current crisis is effecting them in a real dire way. You are the customer, and you are always right even when your wrong. here are some informative links to read before you purchase.
2 Comments, Comment or Ping
Sarah
Pretty good post. I just found your site and wanted to say
that I’ve really enjoyed reading your posts. In any case
I’ll be subscribing to your blog and I hope you post again soon!
Jun 23rd, 2009
Sky Lounsbury
This article was posted lil over a year ago but the advice that is being given is rather offensive. “slimy little used car salesman” “sales monkey” There are these type of people in every industry, it doesn’t matter if you are looking at clothes, houses, computer techs, construction, even our schools and churches. It is not at all appropriate to lump all car dealerships as one giant evil. The advice you are giving is not helpful.
As a responsible adult, do your homework, know your trade-in value, your credit score, know what your budget is as well as the vehicles you are interested in and their current rebates/special financing options. If you are thinking of purchasing a used vehicle, only go to a dealer that has their purchase price online or posted on the vehicle. Also be sure to get an autocheck/carfax on any used vehicle. The more you are aware of what the ‘perfect’ vehicle is for you, the better the buying process will be for all involved.
Also ask your friends, coworkers and family about their buying experiences and get the name of the consultant they worked with. Be responsible for your purchase and if at any time you feel you are not being treated with respect, then walk away and never look back, seek a dealership that wants to build a lifetime friendship.
I work for the largest Dodge dealer in the world who is selling over 600 vehicles a month in todays economy. It is because we give our best price in an honest and respectful manner to everyone, everytime (dealer invoice +200 less avail. rebates). As sales consultants we are paid $180 for each vehicle we sell, regardless of what you buy. The only way we make a good living is to do a great job every time with everybody.
Most importantly when buying big ticket items, be responsible and find the rite place & person that will make your buying experience a pleasurable one.
Sep 23rd, 2010
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