Car Buying Tips: The Four Square - How Salesman Get The Most Profit From You

As a former car salesperson I know all the car buying tips and tricks designed to confuse you and take your mind off the bottom line - the actual purchase price of the car!

I never did like all the tricks used to manipulate people so after I left car sales I decided to write these two articles on car buying tips to help you negotiate for a fair deal. I know they are a little long, but they are honestly worth the reading! It could translate into thousands of dollars in savings to you!

Here are the three most common verbal tricks salespeople use during car negotiating to confuse you and maximize their profit. Keep in mind though that none of this advice is helpful if you aren’t pre-approved for an auto loan.

Verbal Trick #1 - "If I Could Get This Vehicle In Your Price Range"

Good news! You're looking over the lot and you see the perfect vehicle. It's low miles and clean inside and out. Bad news! It's about $2,000 more than you're budgeted for. The salesperson sees that you're in love with this vehicle, so he asks, "if I could get it around the price you want would you buy it today?"

Naturally you think that the salesperson is offering to discount the vehicle. But pay attention to the words, "if I could." A promise was NEVER made to discount the vehicle. You were given hope that the vehicle will be discounted to fit your budget, but never actually promised anything.

Car Buying Tip: Here's How To Counter This

1. Know what make, model, year, etc. you are looking for and basic prices by shopping online first. 
2. Get pre-approved! When you are pre-approved you know your budget and the salesperson won't be able to convince you to purchase a higher priced vehicle.
3. DO NOT walk on a car lot assuming that the dealership will come down by $3,000 or $4,000 dollars during the car negotiating. Most cars today are not marked up that much. Ask for a discount of $1,000 to $1,500 and you should get it. This will leave $500 to $1,000 profit for the dealership (that's reasonable) and you'll get a good vehicle for a fair price.

Verbal Trick #2 - "If I Can Get Your Payments Around Where You Want Them Will You Buy Today?"

Here’s How This Tactic Works

You are budgeted for $350 payments and tell the salesperson that up front (bad move by the way. Discuss payments LAST not FIRST when car negotiating).

The salesperson presents you with payments at $550 a month. You tell him that you can't afford the car at that payment. If you hold your ground during one or two more attempts to bump you by the salesperson they will usually ask, "If I can get your payments around where you want them will you buy this vehicle today?"

Once again, listen to the words. A promise is NOT being made to get your payment exactly where you want it. Any good salesperson will tell you that the term "around" means $50 to $100 a month higher than you are asking for in payments!

Car Buying Tip: Here's How To Counter This

1. Get pre-approved from a lender. Then crunch the numbers and see how much vehicle you can purchase to fit the payments you want BEFORE you go shopping.
2. If a salesperson asks you "how much you were hoping your payments to be?" don't answer them.By diverting you to payments the salesperson can take your focus OFF how much they are charging you for the vehicle, the REAL value of your trade-in and the interest rate they are charging.

Verbal Trick #3 - "We'll Pay Off Your Trade!"

This tactic goes something like this: "OK. Mr. or Mrs. Smith. Here's the price of the car, and with your trade-in, tax and documentation fees, paying off your trade, your payment is $550 a month."

Often you hear this phrase "paying off your trade" used in advertising. "Bring in your car - no matter what you owe - and we'll pay it off!"

This word trick is designed to make you think the dealership is offering you exactly what you owe on your trade-in vehicle - no matter what it's actually worth! So, with a subtle phrase they leave you with the impression that if you owe $14,000 on a car that's worth $10,000 they will give you $14,000 for it anyway.

Here's What They Are Really Saying

Your trade-in will be paid off, by using what they give you in trade, and rolling the remaining amount into your new car loan. When the money comes from the lender for your new vehicle, the dealership will "pay off your trade" by mailing them a check!

Car Buying Tip: Here's How To Counter This

1. Know what your trade-in is worth. A simple visit to Kelley Blue Book or Edmunds will give you an approximate value of your trade-in.
2. Keep focused on the price of the car and the actual amount they are offering you for your trade while instead of focusing on payments, which can be manipulated.
3. Get pre-approved. Once again, pre-approval is your best bet. This way you know exactly how much you can spend on a car and what your payments will be. It takes the dealership out of the drivers seat and puts YOU in it!

Don't be fooled by word tricks! Listen to what is being said and get everything in writing! Most importantly - Get pre-approved! This one thing will truly put you in the drivers seat during negotiation!

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