Car Buying Tips - Smoke, Mirrors, and Shells

Last time out we we’re talking about what not to say or talk about when you are on the car lot trying to get your best car deal. Number one is monthly payments… don’t get into this type of conversation with your sales person.

When money and profits are involved, a dealership will absolutely trying to engage you in a monthly payment discussion or focus.

The sales fundamentals for dealerships and car sales people are essentially one of moving the numbers and money around.

Because of this it probably not in your best interest to mention right up front that you are going to be introducing a trade-in into the equation. Again, another mathematical variable that the dealership has to work with if you do. And once this happens the shell game really begins.

With a trade involved the psychology of the deal really begins to come into play at this point. If you focus on the amount that you want to get out of your trade in, you’ll (at least temporarily) lose sight of the selling price of the new car. And it’s only human nature that if you dig your heels in and fight for your trade in value and feel like you won one; then the law of reciprocal respect engages in our brain and we allow the dealer to win back on the new car price even more than we though we gained on the trade value!

Answering the trade in question can be difficult for most people when they feel like they’ve been told to not mention the trade or to save it to the very end then spring it on the sales person. My car buying tips take on this is bit different in that when asked about the trade, just insist to the sales person that “we’ll talk about the trade a bit later.”

After all, if you’ve done your homework on the selling price of the new car and the value of your trade-in, you only have to keep one number in your mind that you want to hit and that is the ‘trade difference’ and this makes it much, much easier.

For example, if feel like a fair deal is the value of your trade minus the selling price that you want for the new car is say… $15,000 then until the dealer gets to a bottom line or ‘trade difference’ of $15,000 then there is still work to be done and you only have to focus on that number.

If the sales person comes back and presents you with $15,500 on the bottom line, you can mention that it really doesn’t matter to you whether they get you $500.00 more dollars for your trade or they come off the selling price of the new car by $500.00… or a little of both… either way the number that makes you happy is $15,000.00 so it’s up to them to ‘git er done’.

The value of knowing what the ‘trade difference’ is that you want to ultimately have to come up with is, this allows you to keep the numbers very clear and substantially reduces the ability of the car dealer to shuffle numbers around on you.

Next time out we’re going to discuss the ‘back end’ of the deal and why once you get to the ‘trade difference’ number you like; you’d better not let your guard down.

Car Buying Tips - Loose Lips Sink Ships

When it comes to buying a car what you don’t say can be your biggest and best car buying tip.

Feeling a bit lazy and don’t want to read the whole article?

OK… no problem… here’s the most important car buying tip once you’ve got yourself on the dealership car lot… DO NOT talk about or otherwise negotiate based on hitting a monthly payment.

There you go… that’s it. That’s numero uno.

But please read on… there’s more amazing money saving car buying tips.

You know what you want your monthly payment to be… you’ve done your budgeting homework (if you haven’t then get the hell off the car lot).

No body that you come in contact with at a car dealer should have any idea what you want your monthl payment to be… nobody… so don’t even answer that question!

The probabilities are high that the sales people will try to get you to commit to some sort of monthly payment figure. When this happens just politely remind them that the focus is on the price of the car not your monthly payment.

Walking into a car dealership and begining the car buying process is an aniexty filled event for most people. Generally we don’t like confrontation it’s just human nature; and most people regard any type of negotiating process a form of such confrontation… a battle… a struggle over that damn price.

Hello internet… hello www.informationsuperhiway.

Today… the average potential car buyer has the aforementioned at their disposal and as such has a tremendous tool that we of a few years back did not so readily have… information.

So use it.

Don’t go anywhere car shopping until you’ve done your homework. Shop and compare car prices, get a quote, check on your insurance coverage, check your credit, and qualify for a loan… and do it all from the comfort of your favorite chair at your house. Folks… this is powerful stuff you have at your disposal when it comes to getting your best car deal possible!

But even after you’ve taken the time to educate yourself, there are still some things you’ve got know once your on the car lot… things you just shouldn’t say… so let’s take a look.

Stay focused and keep the conversation focused with whoever you talk with on the selling price of the car… do not slide into the murkey waters of monthly payment discussions… do not do it.

Monthly payment’s are a function of several mathematical variables that can be introduced beyond the selling price of the car such as down payment in form of cash - trade - or both, your interest rate, and the length of the loan… so just don’t give the sales person the opportunity to work and swirl these variable around at you trying to hit a monthly payment…. you’ll probably lose track and lose money.

Why is the monthly payment approach from a car dealership such a common tactic?

Ok… shhhhshhhhhh… I’m going to tell you…

(Whispering)… because they can make more money.

So, you may very well hear the approach… “If I can get you in this car for $300 a month….”

If you listen real close to the sales person (or if you missed it have them repeat it)… you’ll note that they don’t say for how many months that $300 per month is going to last. A key element to be sure.

So, if the sales person can get you to commit to that nebulous monthly payment, both the sales person and the dealership now have you on the road to profit city….

If you’ve looked around my website you’ll know about the three basics business areas of a car deal: the price of the car - the financing - the trade in (the trade in may or may not be there but the vast majority of us do trade).

If you’ve just allowed the sales person to pull you into the monthly payment vortex… you’ve just about lost sight of the price of the car (cha-ching) and now you’re about to go work with their finance manager on accomplishing those monthly payments (cha-ching again)… so you’re just about to contribute to the profit margin of the dealer in two of the three areas… ouch!

Is it all just smoke and mirrors from the car dealer?

Let’s talk about that next time… in the mean time take a cruise around my car buying site… it’ll save you some money.