7 Secrets Car Dealers Hope You Don't Know

[big dog cowboy]

7 Secrets Car Dealers Hope You Don't Know
MoneyTalksNews
Nancy Dunham

When my husband and I sat in a dealer showroom, I had no doubt we would drive away in a brand new Nissan Xterra with all the extras — after paying a ridiculously low price.

“You’re killing me on this,” the sales manager told us as we negotiated to bring the price lower and lower. “I’m not making any money on this deal.”

That was a fib.

I knew from my years as a journalist covering the auto industry that this dealer was banking on a huge bonus from Nissan for selling me this car. See, some automakers offer dealers “stair step” incentives. Basically that’s a payment for each car — might be $500 a car, might be $800 a car, might be a different figure — paid when a dealer sells a specific number of designated models during a definitive time period, often a month.

As we drove off the lot in our tricked out, low-cost SUV, I was certain our purchase pushed the dealer into the magic zone. I knew we had found a bargain.

Many — though not all — automakers have discontinued stair-step incentives at the insistence of dealers. But there are plenty of other ways to make sure you snare the best possible deal on a car.

1. Shop at large dealerships
2. Allow dealers to compete for your sale
3. Be Pleasant
4. Remember, loyality pays off
5. Don't talk about your trade-in
6. Consider a soon-to-be-discontinued model
7. Don't negotiate on 'dealer holdbacks'

Read more: 7 Secrets Car Dealers Hope You Don't Know

 

[CalPolyTechnique]

One of my biggest pet peeves is when the salesmen don't know the car they're selling as well as I do.

 

[Rack]

#8. Don't ever, EVER, buy a car that is in first year in existance. Wait till its 2nd or 3rd year so they've had time to work out the issues.

I bought a dart the first year they brought it back... the car is a pos. I'm stuck with it now. It wasn't quite crappy enough to qualify for Texas lemon laws.

 

[Dallas_Cowboys50]

meh, havin a new car is nice...but I'll stick with havin somethin older purchased in the $3-5K range, and NOT have monthly payments, full coverage requirements, high registration taxes, etc...

 

[MichaelWinicki]

One of my biggest pet peeves is when the salesmen don't know the car they're selling as well as I do.

That's not unusual for any product category anymore.

The consumer has all the investigative power now.

By the time a consumer has strolled onto a dealership sales floor, they've quite often studied the cars they're interested in to death. No doubt many do know more about the vehicle in question than the salesperson. That salesperson not only has to try to know something about every vehicle on the lot, if they have more than a single franchise or a large inventory of used cars from other manufactures– The shear amount of data on all the different types of vehicles is daunting. And then the inventory is constantly changing.

It's a tough business.

 

[JoeKing]

I can afford a new car but I haven't bought one brand new since the first one I bought 30 yrs ago. I only buy cars that have a year or two depreciation. One of the worst things you can do to a new car's value is buy it and drive it off the lot.

 

[Tabascocat]

I buy new, don't want someone else's problems

 

[Sarge]

Don't ever buy on your first visit.

 

[ABQCOWBOY]

Funny Story for you. When I first meet my Wife (we were both divorced from previous Marriage), she was driving a smaller vehicle but needed to get into something bigger for the kids. They were getting to the age where they were starting youth sports etc.

Anyway, we were looking at SUVs. The first thing I said to her was that you can't ever let the dealer know that you love the car. You must be ready to walk away from the deal and to remember that not all deals are deals that can be made. She nodded her head in acknowledgement and tells me that she will let me do all the talking. She is not stupid, she is actually very smart but, at the time, she had no experience in how to deal with Sales People or negotiate deals. Anyway, off we went. We must have looked at 20 SUVs and she decided on a Chevy Tahoe. So we went in to the dealership at the end of a quarter, later in the evening. The idea being that dealerships try to make a number, especially at the end of quarters and you can sometimes get much better deals if they are trying to make a number or turn inventory. You go later in the evening because people want to go home and are sometimes willing to do things to get out of the building that they might not do if you go earlier in the day.

So here we are, we start with the sales guy, he does the whole, let me speak to the manager. We then go to the Sales Manager and eventually end up speaking to the General Manager. I needed to keep her payments reasonable, I needed to make sure she wasn't upside down and I needed to make sure that she drove off the lot with some equity built in on the deal. It about 12:00 AM and we are close but the payment is not where it needs to be so I tell the General Manager, "OK, looks like we can't come to terms. Thank you for the time....."

He's looking at me and turning his head to look at my Wife, who is sitting next to me (not my wife yet), and looking back at me. I start to get up, thinking that we will get to the door and that will be the key. If they let us walk out, then we don't have a deal and we have to find something else. If they stop us, we got a deal but more importantly, we have a deal that is a good deal for her. I'm starting to get up from the chair and the Sales manager is looking at me shaking his head. I kinda didn't understand this until I look over at my Wife. She has not said one thing during this whole interaction and as I start to get up, I notice that she is not moving. I look directly at her and there are tears running down her cheeks.

Right then, I knew I was screwed, lol......... I knew immediately why the GM was shaking his head. Iong story short, I ended up having to kick in more on the down to get the numbers where they needed to be and the deal got done. Was really late so we ended up having to come back the next day for the new SUV. We get back to the dealership, my wife is sitting in the new Tahoe and they are taking her old car around back. The GM, who I was working the deal with the night before walks out and walks over towards us. He thanks me for the business and I tell him, "I had you." He says to me, "Yep, you did. You had me right up till your Wife started crying. Then, I had you!"

LOL....... he was right.

 

[Section446]

One of my biggest pet peeves is when the salesmen don't know the car they're selling as well as I do.

It's shocking how many sales guys don't know their own products, I recently bought a new truck and almost didn't pull the trigger because of the lack of knowledge coming from the sales guy.

 

[CyberB0b]

"1. Shop at large dealerships
2. Allow dealers to compete for your sale
3. Be Pleasant
4. Remember, loyality pays off
5. Don't talk about your trade-in
6. Consider a soon-to-be-discontinued model
7. Don't negotiate on 'dealer holdbacks'"

These tips will waste a lot of your time. 2 and 4 are direct contradictions. #5 is a waste of everyone's time. If you are planning a trade in, disclose it. It is part of the negotiation.

 

[yimyammer]

I buy new, don't want someone else's problems

Me too and then I keep them.

I've bought 2 cars (95' Dodge Ram Pick-up, 75K miles and a 2008 Mini Cooper convertible, 36K miles) since 1995 and still have them both. Keep a car that long and in good shape and it covers the risk of driving it new off the lot.

Plus I hate the car buying process so much and all the work I have to do to make sure I'm not ripped off, I'd rather just keep driving what I have.

 

[MichaelWinicki]

"1. Shop at large dealerships
2. Allow dealers to compete for your sale
3. Be Pleasant
4. Remember, loyality pays off
5. Don't talk about your trade-in
6. Consider a soon-to-be-discontinued model
7. Don't negotiate on 'dealer holdbacks'"

These tips will waste a lot of your time. 2 and 4 are direct contradictions. #5 is a waste of everyone's time. If you are planning a trade in, disclose it. It is part of the negotiation.

#1 can be a waste also.

As long as you're aware of the wholesale/retail pricing range on the vehicle you're interested in you can do business with anyone.

 

[rynochop]

That's not unusual for any product category anymore.

The consumer has all the investigative power now.

By the time a consumer has strolled onto a dealership sales floor, they've quite often studied the cars they're interested in to death. No doubt many do know more about the vehicle in question than the salesperson. That salesperson not only has to try to know something about every vehicle on the lot, if they have more than a single franchise or a large inventory of used cars from other manufactures– The shear amount of data on all the different types of vehicles is daunting. And then the inventory is constantly changing.

It's a tough business.

Yeah, I'm not sure what info a salesmans gonna supply you with that you don't already know, or at least should know. And at least in my experience the sales guy is on his own learning about the cars bells and whistles, not to mention the high turnover over of those people.

 

[ROUSH8692]

As a used car dealer, this is the worst advice I can think of....

 

[Hoov]

I prefer to lease a car with high resale value. The dealer calls me about 18 months into a 3 year lease asking me to trade up to a new car for the same monthly payment because they can get good value for the car with low miles and they also end up getting a new car off their lot.

For me, i'm always driving a new car and never have maintenance at all, I trade in before needing tires, brakes or anything other than oil change which is included in the lease.

 

[CyberB0b]

I prefer to lease a car with high resale value. The dealer calls me about 18 months into a 3 year lease asking me to trade up to a new car for the same monthly payment because they can get good value for the car with low miles and they also end up getting a new car off their lot.

For me, i'm always driving a new car and never have maintenance at all, I trade in before needing tires, brakes or anything other than oil change which is included in the lease.

With used cars at an all time high, you can get some good leasing deals.

 

[CalPolyTechnique]

Yeah, I'm not sure what info a salesmans gonna supply you with that you don't already know, or at least should know. And at least in my experience the sales guy is on his own learning about the cars bells and whistles, not to mention the high turnover over of those people.

Recent example...was talking with a sales woman on the availability of a specific model trim (Mazda 6 GT) that came in two interior color options (black leather w/brown accents and white parchment w/black accents). She claimed that the specific trim model that I was looking for didn't come in one of the colors I wanted (black/brown accents).

She was simply wrong.

I left.

She missed a potential sale based on her ignorance of the model and options of the car she sells.

 

[rynochop]

As a used car dealer, this is the worst advice I can think of....

Let me guess, people should go into the dealer and tell the salesman what they want their payment range to be in?

 

[Nova]

#8. Don't ever, EVER, buy a car that is in first year in existance. Wait till its 2nd or 3rd year so they've had time to work out the issues.

I bought a dart the first year they brought it back... the car is a pos. I'm stuck with it now. It wasn't quite crappy enough to qualify for Texas lemon laws.

Man I just never saw you in a Dart.

It's okay. Sentra here.

Who needs horsepower when you have gas mileage?





...please help my soul.