The Ins & Outs, Backwards & Forwards, & All Around on Buying Your Next Vehicle!
Jul 07 '03
The Bottom Line Know that I am always here to help. I have friends that can tell me the actual prices. Know that you set the pace and have the power.
DISCLAIMER: This is a very long article about selling, negotiating, financing, and everything in between for the most part. I tried my best to make it as short as possible but sometimes you can only edit so much. I think it is worth it in this case, should you be interested in a vehicle in the near future.
A while back I went through extensive training to become a car saleswoman. I was the only woman out of 70 total men at my dealership. We started out with over a hundred people in the two week course (many different dealerships combined for the class) and I think we ended with forty. There was a lot of information that they wanted you to learn and you had to be on top of your game. No exceptions, excuses, and no tardiness were allowed. It was a strict and serious environment and the teacher had been giving these classes for years so he knew from the first day who would make it and who would not. Luckily I made it with 100% score.
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It Is a Man’s World!
I went to that class everyday and I learned everything there is backwards and forwards about how to sell a car, even the back end sleazy way. I prided myself on the amount of knowledge that I had regarding the vehicles as I felt I always had to stay one step ahead of all the men out there. The salesmen were like vultures, ready to take your customer away from you, jump in front of you, just to get a measly sale. I am not that type and if it is that important to them then take it. I will find someone else or something else to do. Eventually I just started cold calling people (yes i know we all can't stand telemarketers, but I luckily received a warm reception from 98% of the people) and made appointments so the men couldn’t take the customers away from me. I am only 5 feet tall and I don’t stand out in a crowd except when it came to selling cars. There were even people that would only deal with a woman and didn’t want to speak to a man at all. When I left, I was told that I would always have a job there should my health clean up, because I was the first woman that customers adored and that knew her stuff.
Let’s face it, Car Dealerships are a man’s haven and I was stepping on those toes. There were some men that truly believed that I didn’t belong there and weren’t shy about telling me that. There were others that were threatened by me because for whatever reason when people want to buy a car, it is a matter of trust. Most people trust female salespeople than males. I wonder why? No comment.
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Trust Is the Core of All Relationships, Trust is extremely important
The core of it all is whether you believe you are getting the best deal possible from that dealership and that you are installing your trust with a complete stranger who is also a salesman. Well for some reason the majority of the clientele that walked onto the lot or made an appointment with a dealership preferred to deal with a woman rather than a man. I did very well while I was selling cars and I do believe that it all came down to the level of trust. I was on the side of the customer ALWAYS and that was it. I wouldn’t back down to my desk managers.
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Personality Breakdown
Okay so you walk onto the lot and you already have a basic plan of action of what you are looking for, right? So do the salespeople and believe me we will have pulled the plan out of your hands before you even realize it, because that is what we are trained to do. I was able to take a person who was just looking to buying and smiling that day without pressuring them into anything. It is just a matter of picking up on one's personality. Salespeople are like chameleons, they can fit into any environment.
Well there are four types of personalities that are out there:
1)The type of person, like myself, who has very little patience and cares little for any small talk that a salesperson may try to attempt at. He/She wants to get down to business and not waste any of their time,
2)Next is the type of person who you can tell is emotional and wants to be entertained. He/She cannot get enough of the chat and small talk about this and that in their own lives, and you must always let them talk because it will be their emotions that buy a vehicle.
3)There is the person who comes in totally prepared, or at least he/she believes that he/she is knows every detail of the vehicle and there are questions galore. They want to praised for getting their knowledge via through the internet or research and they want to move to the bottom line.
4)Lastly we have the one who wants to take their time. You could possibly be with this person for hours at a time before they make any sort of decision. It would be insulting to them if you did try to rush them, so you must be overly nice and caring and these types will pay way over invoice but the way you treat them is everything.
Everyone is different and not everyone fits right into a category, right? They may be slightly like #1 but also have the all the answers as with #3.
The point here is that the salesperson will have you covered before you even say five full sentences. It takes a moment to qualify a person and their agenda. You can also tell whether the person is there to truly look, buy, or just wanting to check out the new 350Z for the heck of it. Salespeople don’t want their time wasted if you are not buying, but what they always forget is if you treat them with respect and dignity, they will come back to you and remember you. It isn’t a waste of time because it will pay off in the long run through them or they may even refer someone to you. Unfortunately, there are many salespeople that do not understand that.
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You have the Pick of the Litter, Not the Litter Picking You!
Salespeople want you to be in your comfort zone and they want to make you feel at home even if you are at a dealership.
A Little Side fact, Places People Fear the Most:
The #1 worst place that American hate to go to is the Dentist
The #2 place is a car dealership. (that is pretty scary)
Who wants to bother with the hassle? Well you are there for a reason and it is either to buy a car or check out a car. Regardless, the last person you want in front of you is “Joe Bag of Donuts” as my teacher used to say with the slicked back hair, the accent, and the suit that is already outdated but he still thinks is stylish. You do not have to accept the person who approaches you. You have the control to walk up to the receptionist and ask her who is the best person you can talk to there and she will direct you, at least she did for me. All I am trying to get across is you have choices and do not feel blocked in from the moment you pull onto the lot.
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Trade Ins: To Trade In or To Not Trade In
Almost everyone has a trade in and will drive that car to the dealership to look at the new car. Without a doubt in my mind you will never get what your car is truly worth at a dealership. They may tell you that it will save you hassle if you have to take out an add in the paper and so forth, but they just want to get your car. They sell it to someone else or another dealer and get way over what they offered you for it. It is all about making that profit. They will also tell you that your particular model is in high demand in the used car department. Do not listen. It is not true. Take your car, put it out on a busy street with all details and phone number and you will get a MUCH higher price. It is worth the hassle and the extra bucks in your pocket.
However, should you decide to trade in your vehicle, they are going to do a vehicle inspection thoroughly on your car. They are going to:
1)look under the hood
2)the condition of your tires
3)the paint condition
4)the dents and overall body of your vehicle
5)the exhaust coming out of your tailpipe
6)the interior of your car inch by inch
7)test all the equipment inside the vehicle to make sure it all works
8)look at your glovebox
9)check all the glass on every window and the mirrors
10)Finally, take it out on the test drive with you in the car
Here is where you need to be careful. You know your vehicle inside and out. You have been driving that vehicle for such and such a time and they will continue to decrease the value of your car as they hit every inch of it. They may even point something out that you have never even noticed. In your mind, you have the asking price that you want for the vehicle, the middle of the road price that you like but aren’t crazy about, and then the taking price. Do not allow a salesperson to tell you what type of condition that your car is in and what it is worth.
Before you go to the dealership to get an idea of what your car is worth at www.kbb.com, which is for the Kelly Blue Book Value of your vehicle. At that site you can see the difference between the trade in price vs. the selling it on your own price.
You will have knowledge and as we all know knowledge is power. Do not give up your power! I can’t say that enough because they will continually try to control the conversation and you need to set the pace, not them. The salesperson will try every trick in the book to try to have the power and set the pace of the deal and you have to just say ”NO!”
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It Is Their Time to Shine and Let them Have it, But Listen and Learn
Around this time, the Salesperson has a general idea about what you are looking for. Maybe you have told him and he can just pull a car out or maybe you have strolled the lot a little bit to and found something of interest. This is where they will do a demonstration, if they are an excellent salesperson, on that vehicle.
They will tap into your 5 senses and those are See, Touch, Hear, Smell, and Imagine. Listen to every feature that is on that vehicle. Look over the sticker price in the window as well as all the features that are listed. If there are certain packages that are or are not included on that model, know about it and understand it. I see too many people that will buy into a package because they like two things on it and not realize the rest of the 12 items they won’t use. It isn’t worth jacking up the price a few thousand or hundreds if it is just to get cruise control mounted on the steering wheel.
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The Demo Ride, Take Back the Power
When you first start the demo ride, the salesperson is usually the one driving off of the lot as he/she is showing you all the features that he/she had talked about previously. They want you to touch the leather, open the glove box, feel the armrest. You need to know everything about that vehicle and listen to it as it goes down the road.
Eventually you will be in the driver’s seat and this is where you want to really get the right feel for the car. Turn up the stereo system to hear once and then turn it off. Listen to the engine, are there any noises? Does the steering pull if you stop short? How is the acceleration on a ramp for the highway? Are there rattles at higher speeds on the engine? Allow yourself to try all maneuvers on that vehicle.
If it is a 4 x 4 most places have a spot where you can go and test it out to see how adequate it is. Do not buy the truck unless you have tested that part out and know how it works. If you are a family man and your wife may drive the car, see how easy it would be if she had to change a tire in an emergency. Check out EVERYTHING. There is no rush. In the meantime, the salesperson will be trying to give you an idea of mental ownership, like “Who will be the first person you will show your new car to?” Do not buy into it and just concentrate on the car.
Here is the list you should be thinking about in your head:
1)Quality of the vehicle
2)Is it reliable?
3)What are the safety features?
4)How easily does it handle?
5)Do I like the interior and exterior styling of this model?
6)What would be the reasonable value that I would pay for a car like this?
7)What type of warranty will come with this vehicle?
8)Is the resale value on this vehicle any good should I decide to down the road?
9)Is it a vehicle that I would be proud to own?
10)Is it the right size vehicle to accommodate all of my needs?
11)What is the gas mileage?
12)How does this model rate in the consumers guide?
13)What size engine is in this vehicle?
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The Negotiations
Now it is time to play ball. If you are the type that knows exactly to the T of what you want I wouldn’t even walk on to a dealership unless I know that that vehicle is in stock and at the price range you are looking for. Make the phone calls and hit the two top ones that you have and get them into a bidding war. If you are on the lot and ready to rock and roll, here we go…
The very first numbers that you will see will be based on a 14-15% interest rate over a 2-3 year period term. It is a way to shock the consumer and also as the price and monthly price go down, the consumer feels as if he/she is getting a better deal. Not always the case. Did you know that the most common term these days is 6 years now on a car loan??? They will generally also show you the sticker price on it as well. Do your research, go to auto.consumerguide.com and know what the invoice is around on this vehicle. It will state it from the MSRP to the INVOICE on that website and will tell you about that model. Have that Knowledge Ready.
You aren’t going to accept the first offer and here is where the “TRUST” comes into play. If you truly trust your salesperson and you think they are going to their desk manager and fighting for you then you are in a great position. If you think that you are just being played with back and forth, stand up, get their attention and start to walk away. The price will drop! If it doesn’t, then move on and know that it isn’t the type of dealership you would want to spend your money on, no matter how much you want that car. A little hint as well, most dealerships are mostly made of glass and you can see where your salesperson is going to talk to the desk manager. If your salesperson is laughing and goofing off with them then they are in it for the dealership and not caring about your needs.
Always remember this there is about $1-2K that is between the dealership and the manufacturer that is unnoticed to the consumer. Even if they go below invoice, they are still making a profit. Don’t feel like you are getting a heck of a deal unless they really start dropping and if that is the case, there is a reason that they want that particular vehicle off their lot. Usually it is because it has too many miles on it or it is last years model and they need to get rid of it. Each dealership pays anywhere from 5%-7% to the manufacturer for every day that car sits on the lot off the sticker price. They want them moved and moved fast. Use this to your advantage. I have seen the dealership lose a few thousand over a car that they desperately wanted to get rid of just to get it off the lot.
Do not give them a commitment in writing until you have the payments you want, the interest rate that you deserve, and the right price of the car. I can’t say that any clearer. There are so many people that forget about the interest rate until they get to financing and find out they are paying 18% interest on their vehicle which bumps their payment up quite a bit. Be Careful and Take Your Time. This is a vehicle that you may end up owning its’ whole lifespan so do not rush it and know that if you are serious about buying a car, you are going to be their for a while. It is a 3-4 hour process sometimes even longer. If you know that before you walk in, your patience will not wear thin and you will be acting on the best instincts for yourself and not rushing to get out of there with a new car.
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Every Department Wants a Piece of You
You may think you have the negotiation over with and it is smooth sailing as you wait to go into financing. WRONG! Financing wants a cut of you too so they are going to try to sell you on everything like an extended warranty. The finance makes a cut as well for everything that you sign up for so you have to still have your GUARD UP when you proceed in there. Read the ENTIRE Contract and know EXACTLY what you are getting.
One reader who I very much respect with his advice mentioned "service departments." It was brought to my attention that when you buy the car, you are also buyng the dealership as well for service. Well as for me, it was a requirement that we walk every one around the entire facility and introduce them to the head manager of the service department. We would show them everything (even how we detail a car before they would receive it) and that is the way quality dealerships will act. The salesperson will let you know up front the hours that the dealership is open, look at their waiting room (whether it is nice or just a small room with stale coffee in it), ask how long a routine oil change would take and ask whether they provide transportation for you while your car is being worked on. Often we would drive people to their job and pick them up while they had their car in our service department for the day. The dealership wants you to use their service department and you will be able to see if they care or not if they give you a tour and introduce you to people and show you the common courtesy that you deserve. It is these little things that can give you an idea of the dealership and the quality of workmanship that they are willing to give back to you.
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I hope that this helped you. If you have questions, email me. I am more than happy to answer them.
I have a few more tips;
#1)Go in the evening, around 5 or 6.
#2)Go on a weekday, preferably Tuesday or Wednesday.(Reason why? Well everyday they have a quote to meet, the desk managers that is, and if by the end of the day that hasn’t been met they will be doing some serious dealing with you.
#3) Don’t go in with a bad attitude, enjoy it, this is your new vehicle that you want, never mind the salesperson. If you don’t like nor trust the one you have, ask the manager for someone different to take their place.
My email is attached to my profile page. I have helped many of my family members and friends buy their vehicles. I bought one over the telephone for one of them, for $10,000 below the sticker and $1500 under the invoice, which is great. I could tell that this one wasn't selling in their neck of the woods and they wanted it off of their hands. I even got the dealership to promise to have the vehicle set, no selling in finance and no longer than an hour. So if you ever want a tip or have a question, write to me. I am more than happy to answer what I can and direct you where you need to go. If you get a price and aren’t sure, write me and I can ask my friends in the business (I know from Ford to Toyota to Chevy, etc) whether you are getting a fair shake. I hate to see a consumer get ripped off. I did well selling cars because I was one of the few out there who was honest, didn’t hassle you, and let you have all the power you wanted. Set your Own Pace and Put the Power in Your Mind and Before you know you will be in the driver's seat with a new car at a great price. Good luck out there!
Until next time,
K Parsons
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