The Showroom
You now know how to research the realistic
worth of your trade-in. You have all the information at
your fingertips that you need. In this chapter you will
learn the other factors that will help you be successful
when you go the dealer's showroom.
1. Bring A Backup.
It is always a good idea to bring someone who can help you.
If you are inexperienced and/or have a gentle personality,
bring a strong spouse or someone else who will pull you
out of a tricky situation, if necessary. You should have
someone with you whose job it is to make sure things do
not follow the salesperson's plan.
A car salesperson works on the theory of limited authority.
From his position of limited authority, the salesperson
verbally agrees to any kind of deal you want. He does this
in order to find out what you can really afford. Later,
he claims not to have the authority to finalize the deal.
Then his manager reworks the arrangement and demands more
money from you.
Each time you have to negotiate with a manager or a new
salesperson, you start from a more vulnerable position than
the last, and in the process lose more control. It works
to your advantage if the salesperson feels you can't make
the final decision. It is also helpful to have someone with
you to distract the salesperson and relieve the pressure
when "teams" of experienced sales staff push you to make
decisions.
2. Bring a Pad of Paper and Two Types
of Pens.
These are necessary so you can write notes with a fine-tip
pen and write major agreement items (such as the trade-in
price) with a giant magic marker so the salesperson will
see them. Anything written down has more significance than
the spoken word. Verbal "agreements" can later be misinterpreted
or forgotten. An agreed-upon price or figure carries much
more weight if it is in print. If the salesperson has a
casual attitude toward his claims and prices and a talent
for making figures appear and disappear at will, writing
down the figures makes his words more permanent. If he then
gives you a variety of prices for your trade-in, you can
quote (and point to) the highest when it is suitable. If
you feel comfortable, show the numbers to him as you go
along, ask for a verbal confirmation, and then ask him to
initial the figures. His initialing of the figures does
not bind him to them, but it does force him to stick with
those figures in your discussions. This prevents him from
confusing you by throwing around numbers at will.
3. Hide Your Homework
Keep your homework results and figures out of sight until
needed, so the salesperson does not find out which figures
you will settle for.
4. Hide Your Reference Books and Papers
Treat reference books and papers as you would your homework
- keep it out of sight, but handy.
5. Carry Your Calculator
Use your calculator whenever the salesperson is working
with figures. Don't blindly accept what he tells you. Do
the math for the salesperson if you can, and use your calculator
to do the figuring. Don't try to do mental math. If you
do the calculations yourself, it will take away the salesperson's
ability to confuse you by hurtling throngs of numbers at
you. But be careful that you don't get too distracted with
the numbers that it keeps you from doing your real job -
namely, getting the best deal for yourself. It is a common
tactic for a salesperson to give an interested buyer something
to do so he doesn't focus on whether the deal is a good
one or not.
6. Interest and Payment Tables
At the end of the buy, after the trade-in has been worked
out, the new car price agreed upon, and the financing arrangements
determined, pull out your interest and payment tables and
double-check the figures presented to you. It will give
you great confidence to be able to check the dealer's calculations
of monthly payments, and increases your level of confidence
in the negotiations. You can then be sure that the figures
provided for the payments are accurate. The finance person
knows that if he tries to change the numbers in the end,
you will catch the changes.
7. Payment of Financing Verification
From Your Lender
It is to your advantage to provide your own financing. If
you have secured your own financing, have all the paperwork
ready to show at the appropriate time. You lose a lot of
negotiating power if you need to promise to return the next
day with a loan confirmation. If you come into the dealership
with an approved low-interest loan, you can probably convince
the dealer to reduce his rate.
8. Provide Proof of Insurance
In many states you must have insurance to drive. Make sure
you bring the details of your auto insurance policy. An
insurance card will be fine.
9. A Clean Trade-In
A potential trade-in should be as clean as possible. Be
organized and remove all personal papers. Repair records
and items important to the sale of the trade-in vehicle
should be left in the glove compartment, but nothing else
should be in the car. When dealers put cars out for sale
in their lots, they "detail" the inside and outside of the
vehicles and in many cases steam clean the engines to make
them look better to customers. If the dealer is your customer
for the trade-in, you should do the same thing to secure
a good price for your vehicle. Your intention should be
to leave your old car at the dealership and to drive away
in a new car., It is important that it be ready for them
to put on the lot "as is." This will increase your bargaining
power on a price for the trade-in.
10. Bring Documentation of Debt
If you owe money on your vehicle, bring documentation showing
the exact amount of money left on your loan. If you already
paid your vehicle loan, bring verification. This can be
found on the title. The lien holder is required to sign
off on your title once the debt is fulfilled.
11. Have All the Keys To Your Car
Give one set of keys to the dealer's used-car evaluator,
but keep one set with you until the transaction is complete.
This way if the deal goes sour, you can still drive off
in your trade-in and not be held hostage by the dealer's
staff.
12. Don't Forget The Title For Your
Trade-In
Bring the title for at least two reasons: first, to prove
that your car is paid, and second, to confirm that the title
is a normal title and not a "limited" title, such as a salvage
title. The value of a vehicle can drop dramatically if the
car has a salvage title. In states that have salvage titles,
they indicate that the car has been "scrapped" (for reasons
such as a road accident), and then rebuilt and the title
reactivated. A vehicle with a salvage title may run well,
but its perceived value and its resale value are substantially
lower.
13. Include The Service Records
Nothing sells a car like a verifiable history of good service.
This is especially important for the more expensive, luxury
cars, but it is also important for the less expensive models.
14. Dress to Impress
Wear comfortable, presentable clothing. You may have to
sit at the dealership for several hours, and you need to
give an impression of being a serious buyer. Tight clothing
will make you uncomfortable, and ripped or torn clothing
will not win you a better price on your car, nor any sympathy
- but it may get you a higher interest rate on your financing.
Make sure you can stand, sit, and negotiate in your clothes
without being embarrassed or uncomfortable.
Dressing well will make you look prosperous. You want to
look as though you can afford to buy a car. People usually
fare better if they look as if they are well educated and
can afford the vehicle. Also, your time typically spent
in negotiation will drop if you appear professional, competent
and confident. Stay away from risque necklines or distracting
outfits. You can't be tough if you don't look tough. Keep
the issues on the car, not on any other topic. The typical
car salesperson may be influenced by style, fashion or skin
exposure, but in most cases, business will always be foremost.
15. The Best Car-Buying Attitude
Always enter the showroom with certain attitudes firmly
entrenched. Your body language should match your clothing
and the thoroughness of your research. You must be clear
in your mind that you will buy a car today, if the price
is right and if you are treated well both personally and
financially.
Remember that you are the customer. The dealership must
sell the car. You, however, can always live without the
car a little longer. Do not allow yourself to feel pressured.
The salesperson may be desperate for the sale, but you are
not. If it helps, bring along someone who can assist with
your unwavering confidence. Don't feel like you can pull
it off? Here are some pointers:
Clear your mind of all extraneous details. Don't go to buy
a car with a head full of troubles. Once you enter the showroom,
the purchase should be your first and only priority.
Remember that since your financing is already established,
you don't need to worry about how to pay for your new car.
This will give you confidence and will prevent you from
being held up by later in the deal with financing problems.
This is why it is so crucial to secure your financing before
you visit a showroom.
Limit the negotiations to one car or two at the most. The
salesperson will view you as a browser if you try to negotiate
in general rather in specifics.
It's your money. You are the customer. Your money can easily
be spent at another dealership or on other things. If the
dealer wants your money, let him work hard for it.
Demand good treatment. A lack of warmth and some reserve
will keep a distance between them and you, which is what
you want. Most salespeople believe that if you like them,
they will have more success making the sale. They will go
out of their way to make you like them in order to facilitate
closing a deal. Don't give them the edge. Keep them at enough
of a distance so that friendship does not become a factor.
16. How To Act
Don't be emotional. Be neutral. Don't gush about how much
you adore a car. If you do, you will probably pay more for
it. Don't be too negative either. This only makes the salesperson
defensive, and he may assume that you are not ready to buy.
Having a negative attitude will not earn you respect or
a cheaper price. Nor will it make you look like a sincere
buyer. Be cool and a little unpredictable. If you feel you
are being treated badly or not taken seriously, be firm
and let them know about it. Don't be afraid to speak up.
Be ready to deal if the price and everything else is favorable.
Salespeople are trained to determine within the first few
minutes what type of a customer you are. Once this is settled
in their minds, they choose a game plan to follow in order
to handle you to the best of their advantage. It is to your
advantage to turn the tables and show them that their strategy
will not work. They have to rethink their approach at the
last minute and figure out how to backtrack on all the things
they told you previously to convince you to buy a car.
Tell the salesperson only what he needs to know. He will
probe you for information about your job, why you want to
buy a car and your financial situation. Tell him only what
you want him to know when you want him to know it. Always
remember that everything he learns may be used against you.
A salesperson is not your friend.
A savvy salesperson pays attention to even your most casual
comments, so reveal only what you want the dealer to hear
- no more, no less. When in doubt, say nothing.
If it helps, play dumb. You don't have to be a nuclear scientist
to succeed in this negotiation. When the salesperson attempts
to classify you when you first meet or take a test drive,
it's alright to appear a little confused, uncertain or weak.
When hit with technical or sales mumbo-jumbo you don't understand,
saying "I don't know" will throw him off guard. Later, when
it is too late for him to change his tactics and attitude,
show him you are in control. Explain to the salesperson
that, "This deal is not good enough," which may force him
to offer concessions. If he is scrambling to make a deal,
he may throw in things you never considered to keep the
discussion going. Consider asking for a better price or
something more specific.
When you near an agreement, consider saying "No" one more
time to see what happens. You never know. Something else
might fall into your lap, especially if it is late in the
evening.
17. What Not To Do, and Whom Not To
Bring
Below is a list of dont's:
- Do not bring anyone who won't be able to help you. If your companion only tagged along to help choose the color or style, send him or her away before the negotiations begin. Try to avoid distractions. This means that your children are best left at home.
- Do not bring your money source if he or she cannot assist in the purchase negotiations. This may be difficult, but if the person came along merely to see how you are spending the money, it may be in your best interest not to have that person around.
- Do not impede yourself with a time limit. You must have the freedom to "wait out" the salespeople, or to walk out of the dealership without any drawbacks. If you desperate to buy a car in order to drive to work by a certain time, you probably won't get the best deal. The best strategy is to force the dealership under the time limit. Purchase your vehicle late in the evening, when the sales force longs to go home.
- Do not bring any sort of fear or apprehension. If you have done your homework, you have no reason to be anxious. You will feel more than ready for whatever happens.
18. Total Image
Since you want the dealership to know that you are serious
about driving home in a car today, but only if you are treated
fairly, you should tell them so. Act and look the part.
You want to be taken seriously. This gives you a lot of
leeway in how you operate and how much the dealership will
tolerate. Come prepared. This is the type of customer that
car dealers make allowances for and gladly spend time negotiating
with.