6 Ways To Counter Tactics From Car Salespeople
When you’re buying a car, used car salesmen sometimes employ tactics to secure a purchase that works more in their favor than the buyer’s. From focusing on monthly payments to pressuring you into making a quick decision, these strategies can cloud your judgment and cost you more in the long run.
By familiarizing yourself with these tactics, you can learn how to counter them and avoid being taken advantage of during the car-buying process.
- Car salespeople use various tactics to pressure buyers into purchasing vehicles they may not afford.
- Staying focused on the total cost of the car, interest rate and fees can help you avoid making a purchase you’ll regret.
- Don’t be afraid to walk away if the purchase doesn’t feel right.
6 car salespeople tricks and how to counter them
Used car salesmen have a playbook full of strategies they use to sell cars. Whether it’s getting you to focus on monthly payments instead of the total price or pressuring you to buy right now, these tactics are designed to work in their favor.
“Salespeople are experts at reading others and are masters of persuasion. That, and car salespeople just generally understand the industry more than the average person,” says Carol Pope, LendingTree staff writer and car insurance agent. “Although most salespeople have their clients’ best interests at heart, they still want to make a healthy commission.”
Here’s how to recognize these moves and avoid them.
1. The trick: Focusing on monthly payments
Focusing on the monthly payments of your auto loan is an easy way to confuse the buyer.
Rather than looking at the total amount due, salespeople will present this number to convince the buyer the purchase is affordable. This can take the focus away from the big picture, which is what you’ll end up paying in the long run.
For instance, if you choose to go with a higher monthly payment, you could pay less interest over the life of your car loan. A smaller monthly payment could mean you pay more in interest.
While your monthly payment is an important number to consider, keep in mind other details such as the car’s overall price tag, interest rate and repayment term. The average car payment for used vehicles is $520, but use an auto loan calculator to get a sense of what the total cost of your loan could be.
If you’re worried about affording a new vehicle, use the 20/4/10 rule of car buying. It’s also wise to shop around for loans so you can secure the best interest rate and stick to your budget.
2. The trick: Focusing on your trade in
Car salesman could use your trade-in as a bargaining tool to convince you to spend more on a new car. The salesperson may offer you a higher trade-in value than it’s worth and encourage you to buy a car with a high price tag or tack on unnecessary extras. Ultimately, this doesn’t save you much on the purchase.
Do your research before you step foot in the dealership. Use tools like Kelley Blue Book or Edmunds to determine your car’s value so you know how much you can get for trading it in. How much you’re getting from the trade-in matters, but don’t let it be a distraction from negotiating the best price on the car you’re buying.
3. The trick: Marking up interest rates
If you’re financing a car through the dealership, they will send your information out to multiple lenders, which will provide an interest rate, known as the buy rate. However, dealerships sometimes mark up the interest rates on loans without you even realizing it. If you don’t understand how financing works or shop around for lenders beforehand, you could end up paying more than you expected.
Before heading to the dealership, get a preapproved auto loan. This acts similar to a check and gives you some negotiating leverage if the dealership offers financing. This way, you could secure a lower interest rate or, at the very least, you can compare offers to ensure you get the best one.
4. The trick: Drawing the sales process out
When you walk into a dealership, you don’t intend to be there all day, but salespeople may intentionally drag out the car-buying process to wear you down. The longer you’re there, the more likely you are to make uninformed, impulsive decisions just to get it over with.
Don’t be afraid to walk away at any point if you’re not happy with the process. Go in with a plan and take breaks. Be sure you have eaten and are hydrated so you can focus on the process without feeling impatient and agitated. Remember, you can always come back another day.
5. The trick: Pressure to act fast
There’s a chance a car salesperson could pressure you to buy now or lose out. Salespeople might tell you there’s a special offer about to expire or another buyer is interested in the car you want to purchase, even if it’s not true. This is used to create a sense of urgency and get the buyer to move forward with a purchase they may not have been prepared to make.
If you’re feeling pressure, just say no and take some time to think it over. Additionally, waiting until the end of the month when dealers need to hit quotas can help you score a better deal by negotiating the car price.
“Remember that you are the one with the final say, always. If you’re feeling steamrolled, don’t be afraid to walk away,” says Pope.
6. The trick: Not explaining fees and add-ons
Dealers may sneak in additional fees or unnecessary add-ons that you don’t need, such as extended warranties, gap insurance or paint protection, to increase the price of the car. And if you aren’t paying attention, you might not notice or think they are dealership fees you must pay, but even some of those are negotiable.
Before you sign anything, ask for a breakdown of all fees. Don’t hesitate to negotiate or simply say no to fees for things you don’t want or need. If they’re non-negotiable, make sure you know exactly what you’re being charged for.
“The salesperson will probably aggressively offer extras when you’re signing your final paperwork,” says Pope. “If you’re not interested but they won’t stop selling, politely let them know that they’re wasting time. It can take guts to speak up, but salespeople are used to hearing no. Just be nice about it.”
What not to say to a car salesman
When negotiating with a used car salesman, avoid revealing too much information, as it can be used against you.
For example, sharing your maximum budget can limit your negotiation room. And, if you express strong interest in a particular vehicle or that you urgently need a new car, the salesperson might use it to their advantage by offering you the vehicle for a higher price or rushing you to make a decision.
“Never tell a car salesperson that your current car is broken down or that you’re desperate for a ride. That immediately tips your hand and shifts the power from you to the dealer,” Pope says.
“What you should do, though, is show how much the dealer you’re able to spend by bringing along a preapproved car loan. If they want to make a sale, they’ll have to stay within that budget since that’s all you’re tentatively approved for.”
Frequently asked questions
Car salesmen make an average of $81,942 annually, according to data from Indeed. However, in the highest paying markets, a car salesman can make close to $160,000.
Don’t reveal your maximum budget, rush into a decision or express too much excitement about a specific car. Stay focused on the negotiation and don’t give away your leverage.
No, salespeople usually earn a commission based on sales, so tipping isn’t necessary.
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