Don't Be Fooled

DEALER # 1	DEALER # 2
M.S.R.P. = $20,000 Trade Allowance = $10,000 Discount = $0 Trade Difference = $10,000	M.S.R.P. = $20,000 Trade Allowance = $ 8,000 Discount = $ 2,000 Trade Difference = $10,000

Don't let the dealer "move the numbers!"

Dealers Dirty Tricks

"We already have a buyer for your trade-in."

It can be exciting to think that the dealership already has a buyer lined up for your trade-in and as a result will pay you Big Money for your car. Of course you need to trade it in immediately. Complete nonsense! The dealer uses this phrase probably more than any other.

PAYING CASH

If you can pay cash for a new car, Great. But do yourself a favor, don't ask for a special deal, you may end up paying more. The fact is that dealers make money when you finance through them and they *hate* cash deals. When you announce that 'This will be a cash sale,' all it will do is compel the sales manager to try to make more money on the sale since they won't make any on the 'backend'. Keep this information to yourself until after you've agreed on a price.

Buy it TODAY!

The dealer knows his or her best chance to make the sale is when you are there. Statistics show that if you leave the dealership without buying, chances are you won't be back. They will go to great lengths to give you the impression that you must buy today or else you will lose the car or the deal. Their job is to create a sense of urgency! Play on your emotions! With each purchase you may make, no matter what the item, chances are you are buying on emotion.

Stretching the term

You want your payments under $200 per month? Any amount financed for long enough will become $200 a month. Keep an eye on the term of the loan or lease. Free Purchase / Lease Analysis.

The 'switch' close

'Well Mrs. Smith maybe this car is just too expensive for you. Let's look at our cheapest car over here.' This relies on your ego to prove them wrong and buy immediately.

The fear of loss close

'You know Mrs. Smith, I have others looking at this car too, and this is the last one.' Like there will never be another car like it! Please, when this line is stated to you (it will be, don't worry) just smile.

Value package discounts

'You see the manufacturer already discounted the price right here on the window sticker so I don't have any room to move.' Complete fabrication!

After the Deal

Car dealers make lots of money on the 'back-end,' meaning financing, insurance, extended warranties, and other add-ons. This is often called the F&I (Finance & Insurance) department and the salespeople here are called 'Business Managers.' In most cases the Business Manager is the real salesperson since dealerships often make more money here than on the sale of the car. Be careful not to let your guard down, they are counting on the euphoria of your taking ownership of your new car overriding your common sense (remember, it's an emotional experience). After signing up for their new car, many people often go into 'yes' mode and tend to stay there for awhile.

Devalue your trade-in

"We would give you more for your car but it needs X which cost $350, and Y which cost $400 and a Z, that's $100.'"

The dealer will use anything he can find to put a big price on repairing and use it to negotiate down the value of your trade-in. Remember, this tactic works both ways. You can and should nit-pick the dealers car as well!

Writing in code

Dealers write numbers they don't want you to know (your ACV, profit on your deal, cost, etc.) in a simple code. Instead of using numbers, the first ten letters of the alphabet are used. A=1, B=2, etc., J=0. Thus if you see 'CJJJ' written on a trade-in appraisal sheet, you just got a $3,000 ACV (actual cash value) for your trade-in.This is one area where dealers will really underestimate you. They will use this in plain sight on paperwork that they use, and may even hand to you to review. You'll be amazed at what you can easily find out now that you know their code. Use our "Free Auto Values Reports"

Trade-in Tips

1. Make sure the car is clean in and out.

2. Trade before your odometer turns the next ten thousand mile increment (49,000 is better than 50,000 etc.)

3.Depending on your equity situation, you may want to repair or replace damaged or worn items that are highly visible (cracked windshield, worn tires, etc.). But don't bother with things you can't easily see like a tune-up, shocks, brakes etc. You won't get any more money from an appraiser for things he can't see.

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Remember to:

Check out the prices for auto accessories.
Wondering about your financing options? Check this out!
Advanced Loan Fees WARNING! Read it!
Does your New Car purchase qualify as a lemon? Find out here
Ever wonder how the dealer makes his money? Now you'll know
Want to read the latest automotive magazines online? We have 127 magazine links for you in every category!
Have accurate trade-in values BEFORE you walk into the dealership! ( we'll supply: wholesale, retail, invoices, ACV and trade-in value reports Free of charge!)
Check out the holdback dealers have coming to them before you negotiate your car deal. This information will definitely save you some serious money!
Don't be afraid to negotiate the car deal on your terms. The dealer knows how to sell, you will now know how to buy!
If you are considering leasing a vehicle, check out buy vs. lease section. You'll be glad you did!
Use the cost comparison calculator. Compare two vehicles side by side and determine which is best for you.
If you plan on leasing a vehicle, use the lease checklist and keep the dealer honest.
Take a peek at over 189 auto, truck and motorcycle rental links here!
Wondering just what laws the dealers MUST adhere to? Take a look at Your States Attorney General laws here!
Look up a new car invoice and arm yourself with information!

More Trade-in tips

The most profitable thing you can do with your used vehicle is to sell it yourself and use the money for a down payment. If you opt to simplify the process by trading it in, established its value before you walk into a dealership. You should know the Blue Book value of your car, including its options, and research what your make is selling for in the classifieds and on the lots.

Your trade-in should be impeccably clean before you have it assessed. Wash and wax it; clean the windows, mirrors, upholstery, dash, floor mats, and carpet; and remove all trash. Make any minor repairs such as new pedal covers or mirror replacements. Clean the engine, change the oil and oil filter, top all fluid levels and, if needed, get a lube job.

After you have come to a mutually agreed upon price for your trade-in, get the quote in writing to prevent misunderstandings when negotiating for your new car. You should negotiate the price of your trade-in, the purchase of your new car and financing separately. Mixing these will impact you negatively.

buy rate scams | financing | dealer holdback | buying used | blue book