Outsmart the Auto Dealers

I am writing a book about family finances and I am putting the finishing touches on the chapter about buying automobiles. Here are a couple of the thoughts that did not get into the book, but you might like them anyway. I will share some of the other juicy stuff a little later.

• If you would like to use the dealers’ own tricks against them, here are a couple ideas for you. First get your financing lined up with your bank or credit union. Then, when you get to the dealership tell them that you want a very good deal, and that you would be happy to consider using their financing. This makes them think you are a sucker. They will be willing to give you a low price because they think they are going to fleece you with the loan details, and there are plenty of them (more on that at a later time). Then hammer out the price in writing before you get to the financing department. Once there you find out what their financing is and if it not better than yours they lose the chance to fleece you, but you still have a great price.

• One time I took my son, Justin, to a dealership when he was about 10-years old and before we got there I taught him about the Bait and Switch scam that dealers like. If you are not familiar with the term it applies when a merchant runs an ad saying something like: New pickups only $13,000. When you get to the dealer they don’t have any, for various convenient reasons, and they try to sell something else. Well anyway, I told Justin we would turn the tables and use the Bait and Switch idea on them. When we got there we went out to the lot and found an Explorer that I liked only I didn’t want the dealer to know it was the one I wanted. So I picked out an Explorer next to the one I liked and which was about $1,000 cheaper. We negotiated back and forth for about an hour (since they moved in very small numbers, I did too) and when they came back with their 3rd or 4th “final number” I said, “Okay, that is acceptable if we just substitute the more expensive vehicle next to it for the one we have been talking about”. By this time, the manager was tired of messing around and he wanted to make a deal so he took the deal just to get rid of me. I did not feel sorry for him because we both knew he was still making a nice profit.

* Another time, I told the salesman that I am different from other buyers because my first offer is my best offer and I lower my price the longer they drag out the process and consume my precious time. He took my offer to the sales manager and sure enough, he came back with a counter offer. I played around with the numbers a bit and made a new offer of $100 less than my original one. He was surprised and proclaimed, "but, that is lower than what you offered before," I reminded him that I already told him that my first offer was my best offer, because I value my time." I went on to say, "if you come back with another counter offer, I will lower my price even more." A few minutes later it was over. They didn't want to lose more money. They took my deal.

Your comments are welcomed.

Please visit my other blog when you get a chance. It iis usually about human interest stuff.