Car Buying - Monthly Payment Approach

Let's face it.

The vast majority of people buy cars based on car monthly payments approach. If the payments fit the budget... Right? Very few people walk into a dealership and negotiate strictly from a cash position.

From a sales perspective, getting a potential buyer to commit to a monthly payment or payment range is the primary goal of an automobile salesperson. 

As a buyer you should never try to get your best car deal negotiating from a monthly payment goal.

If you do this (and many do) you will probably be one of those who contribute the one of the highest profit margins for the dealer.

I sincerely hope that after visiting this website, you will understand how important it is for you to understand that what you need to know is...  that if I finance (trade difference) this amount of money for this amount of time; my monthly payments will be where I need them.

Knowing this you can negotiate the two numbers that will get you there. The selling price of the new car and the dollar amount the dealer will allow you for your trade. Neither the salesperson nor the sales manager should have any idea what you want your monthly payments to be. All they need to know is what they have to accomplish trade difference wise to get the deal done.

Don't make a boneheaded mistake and walk into the dealership and explain to the salesman that this is where I want my monthly payments, can you help me?  And if the sales persons inquires as to where do you need to be monthly payment wise to make the deal. Politely tell the sales person that "let's stay focused on the selling price and the trade and I'll let you know when we get there."

Sorry... but not knowing the numbers you need to be at to achieve your (unspoken/unadvertised) monthly payments is just plain stupid.

Get Free price quotes and vehicle information. Get multiple local dealer selling prices!

Stay focused on the price of the car. The sales person will probably continue to ask and probe for a monthly payment commitment... It's their job.

Don't feel offended as they will probably continually turn the conversation that direction.

Do not give in. Again, just let the sales person know that when you feel good about the selling price and the trade value on the two cars (the new and the trade) you are sure that your monthly payments will be where they need to be.

Getting you to commit to a monthly payment (actually a 'payment range' commitment is pay dirt for the dealer) is known as structuring the deal or teeing it up for the F&I person; who is waiting to take their whack at you.

By getting you comfortable and feeling all warm and fuzzy about a payment range the salesperson is merely trying to mentally raise your payment expectation level and desensitize you to the numbers.

Dealers know that they have a very good chance that they can bump your payment expectations (and their profit) by structuring a deal where you feel good about a 'payment range'.

If you put yourself in this box its just about kings X for the dealer.

I mentioned teeing it up for the F&I person.

Here's why dealers and salespeople really like you when you are a payment range type of buyer. When you get comfortable with a potential deal based on a payment range, there is going to be some payment padding figured into this.

When you sit down in the F&I department on the final leg of the deal, if the sales person has a bit of padding in his payment range quote, then the F&I person will gladly show you some of the little extras they can add to your contract (F&I people are sales people. They too are responsible for sales and profits and their job depends upon it) and hardly affect your monthly payments at all! 

Imagine that!

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