| December 8th, 2008 by admin |
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Things To Avoid Saying To A Car Dealer
Things To Avoid Saying To A Car Dealer
A lot of people dread the process of buying a new or used vehicle. The thought of owning it is exciting, but spending hours haggling over price can make anyone feel less than enthused. In truth, consumers have a lot more leverage than they think. After all, as the economy heads south, people are less willing to spend money for a car they don’t need. Dealerships and salespeople know that and are usually willing to deal. Unfortunately, most people fail to realize how the things they say to salespeople can end up costing them money in the long run. In this article, you’ll discover 3 things you shouldn’t divulge (at least until the right moment) to a dealer.
#1 – “I Want Monthly Payments”
Don’t start the negotiations by telling the salesperson that you want monthly payments. The fact is, once you mention it, the target of the negotiation switches from the amount you’ll have to pay to own the vehicle to the amount you can afford each month. Between the purchase price and interest charges over the term of the financing, a dealer can build profit without your realizing it. Unless you’re planning to take your laptop and financial spreadsheets to a dealership, don’t mention payments.
#2 – “How Much Will You Give Me On A Trade-In?”
Any factor that you introduce into the negotiations gives a dealership one more financial avenue to play with. For example, assume you want to purchase a new car that has an MSRP of $25,000. You mention to the salesperson that you’d like to trade your old jalopy in. The salesperson might offer you the full value of your old car, but will be less willing to lower the MSRP of the new vehicle. Leave your trade-in off the table. Focus solely on the price of the new car.
#3 – “I Have Bad Credit”
This sends a clear message to a dealer that you’re desperate for a car. You might think that a salesperson will show empathy and restraint during the negotiations, but you’d be wrong to believe that. In most cases, divulging that you have poor credit is akin to telling them, “I’d be willing to pay anything for a vehicle.” If your credit history is spotty, the dealership will find out when they run a credit check. Otherwise, they might try to attach a high interest rate without even checking.
Remember, auto dealers and salespeople are trying to make a living. The problem is that making that living often puts them at odds with your best interests financially. If you’re planning to purchase a new or used vehicle, don’t mention the 3 items above until you need to. You have very little to gain by doing so and a lot to potentially lose.
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