Tactics car salespeople hope you don’t know Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial choices by offering you interactive tools and financial calculators that provide objective and unique content. This allows users to conduct research and compare information for free and help you make sound financial decisions. Bankrate has partnerships with issuers, including but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this website are provided by companies that pay us. This compensation may impact how and when products are featured on this site, including, for example, the sequence in which they be listed within the categories of listing, except where prohibited by law. This applies to our mortgage, home equity and other home loan products. This compensation, however, does not influence the information we publish, or the reviews you see on this site. We do not cover the universe of companies or financial offerings that could be open to you. Industrieblick/Adobe Stock
7 minutes read. Published 17th January, 2023
Authored by Dana Dratch Written by Personal Finance Writer Dana Dratch is a personal finance and lifestyle writer who is a fan of all things money and credit. With an education of English and writing, she likes asking the questions everyone would like to ask and sharing the answers -and also smart money management tips from the experts. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping their readers feel confident to take control of their finances with clear, well-researched facts that break down complex subjects into digestible pieces. The Bankrate guarantee
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We are compensated in exchange for the promotion of sponsored goods and, services, or by you clicking on certain links posted on our site. So, this compensation can impact how, where and when products appear in listing categories in the event that they are not permitted by law. This is the case for our mortgage, home equity and other home lending products. Other factors, such as our own rules for our website and whether a product is available in your area or at your self-selected credit score range could also affect the manner in which products appear on this website. We strive to provide the most diverse selection of products, Bankrate does not include details about each credit or financial products or services. The process of purchasing an automobile or a car has a lot of moving components. You must negotiate with car salespeople about price and negotiate with lenders to get an auto loan — all while trying to negotiate a fair deal for your trade-in. Making mistakes can cost you dearly and so it is essential to be prepared. “The salespeople are specially trained to separate you from your cash,” says Jeff Bartlett, Consumer Reports’ managing editor for automobiles. “This is a skill that they do every day, and the average buyer of a car buys an automobile every five years or so. This isn’t a fair fight.” Be aware of these tactics and think about the following tips for salespeople to ensure a better chance of getting what you want when you buy your new car. Top 7 salesperson tactics to be aware of You will likely face aggressive sales pitches whenever you visit a dealer. Here are seven of the most common tactics you could come across. 1. Playing out the clock Some car salespeople use time to sell their products, says Bartlett. They’ll sketch out the process until they’re exhausted. The salesperson is going to stay all day long, regardless of you. Therefore, if you’re planning on , don’t be afraid to set aside all day at the dealership and bring something to fill your time while waiting for the salesperson to arrive. However, you don’t need to complete the entire process within one day. It’s okay to make an informed decision. When you return to the looking to purchase Don’t be held captive. Say: “Give us your best price.” If the salesperson suggests going between you and their boss, ask them to text or email you the results. The strategy is to arrive at a dealership, immediately establish the pace of the procedure by saying “I’m here for a test drive. Tomorrow, I’ll return to discuss numbers.” 2. Psychological profiling Sales staff receive extensive training in how to analyze the requirements and weaknesses of prospective customers. Their ability to quickly assess customers ‘ needs allows them to answer scripted questions and lead the process. “Car salespeople are very specifically educated in the art of convincing customers,” Bartlett says. “You’ll need to know not just your weak spots.” One of the questions that you may be asked is “How much are you looking to spend per months?” Bartlett says that it’s crucial to keep that information in your wallet. “If you announce that beforehand, it can alter the course of action. This could make you more at risk.” Insist on after your test drive and have you completed signing paperwork. It’s okay to let car sales representatives assist you with some questions, but keep in mind that they may use facts against you such as desires for family, vanity or safety priorities, to upsell you on the more expensive car or . “Stay focused on your goal,” Bartlett says, and repeat this mantra: “Let’s focus on this. Let’s get back to that later.” The best strategy is to Divide the process of buying into phases and concentrate only on one aspect at a time. Start with the car that you are looking for, then move onto and put off any add-ons or for a separate discussion. 3. The stress of the ‘coming event’ is a constant reminder of the things you want, and you have . The salesperson then tells you that if you don’t buy the car today then you’ll be unable to make the sale or that someone else will see the car. That’s a sales tactic known as “the imminent event.” “People get more interested in getting something they know someone else is interested in or already has. Car salespeople often take advantage of this,” says Ronald Burdge, a lemon law attorney. “Suppose you’re in the car dealership looking around and you decide to purchase an automobile and the salesperson breaks the bad information to you, telling you that there’s already an investment in that vehicle or that there’s a buyer who said they’d be back later today for the purchase,” Burdge continues. “That’s usually followed by the invitation to put a price on the car or buy it right now before they come back. The impending event may be real but typically, the story is just an attempt to convince you to spring for the purchase immediately.” “A car dealer who will do that to you will most likely to offer a lot more every chance they encounter,” Burdge says. Keep in mind that you can get similar cars in other places, whether at a different dealership or even on the internet. It is also possible to purchase something else. Your strategy: Look at the salesperson’s face and ask “Are you telling me that if I go back next week, you won’t be able to sell me the car?” In other words your best defense is to walk away or at the very minimum be prepared to do it. 4. The “porcupine closing” this method, the dealer “sticks” potential buyers with an inquiry. It could be “If I were able to offer you this monthly installment, would that be what it takes to get you to buy this vehicle today?” Or “If I can get this in midnight blue Would you be willing to buy this today?” This strategy, known as the “if,” signals that the dealer is looking for your trigger for buying, says LeeAnn Shattuck, creator of The Car Chick website and Car Chick TV. Your approach: Your response to this question should always be”no,” Shattuck says. Instead, inform the salesperson that you are shopping around with various dealers in order to get the most affordable price. When you’ve compared the deals, you’ll need to purchase. 5. The ‘Ben Franklin Close’ This one is a classic. The way it works is: The salesperson draws a line across the middle of a piece paper, stating reasons to purchase the vehicle on one side, and the reasons to not buy it on the other. This is a popular sales gimmick in the auto industry and elsewhere. “The concept is that you’ll see that on the whole it is better off buying a new vehicle,” Burdge says. “Of of course, that depends on the information they write down and how true it is.” It is important to be focused on during this tactic — including your monthly payment and your down payment and also your length of time, the interest rate, and the overall price. “Know the exact numbers that these should be, according to your budget, before you enter the dealer, and make sure to stick to those numbers,” Burdge says. Your strategy: The best way to defuse the tactic of a salesperson is to name it. Say, “That’s the Ben Franklin close.” If you do this, it could cause a awkward moment with the salesperson, but it’ll keep the tactic from going on for long. 6. The alternative choice close This strategy is one of the most sought-after, says Dan Seidman, managing director at Read Emotions and author of “The Ultimate Guide to Sales Training.” You’re offered an option to choose between two options, like whether you would prefer a product in blue or red. Car salespeople who are good at their job never ever ask you to answer a question since they don’t want offer you the chance to choose not to. The trick is to know that both options are offered. “In the automobile business selling what’s available on the lot,” Seidman says. “A knowledgeable buyer could say, ‘I want to look at everything you have.'” If a salesperson attempts to lure you in with the alternative offer, do not take the lure. “You’re relaxed, you’re leisurely and you’re not yet ready to make a choice,” Seidman says. Your strategy: Take lessons from the political arena. Refuse to answer with a noncommittal answer -as if you’re interested in a variety of colors — before switching to a different subject. 7. The trip into the rear office finance manager is among the most experienced people working in this dealership Bartlett says. They will recommend that you add a bunch of things you don’t really need. Because you’re spending lots of money on your vehicle, you could be encouraged to buy security measures for interior staining, anti-theft devices including rustproofing and . “If you’ve taken your time throughout the car buying process, don’t blow it with this last step,” Bartlett says. You’ll need to be crystal clear about what you want — presumably not tacked-on, profit-driving extras — and finalize that package. To make sure that the additional costs do not add up, you should go line by line through your bill, looking out for dealer fees you can . The most common ones to check out for are vehicle preparation fees, title fees and . Your plan: Determine what you want and need before you visit the dealer and stay true to your goal. You should ideally already have financing lined up and constantly remind your finance manager that you’ve got a plan and don’t have the flexibility. What influences a salesperson’s methods? Salespeople are typically under pressure to maximize the profits for every vehicle they sell in order to increase their commission, and this affects the way they communicate with you. The more a salesperson convinces you to buy the vehicle, the greater profits they earn. Their commission may be as high as 25 percent of the vehicle’s final sales price, Burdge says. Dealership management also gives bonuses to sellers of cars which were parked on the lot. There are also additional bonuses from the manufacturer of the car for salespersons or from the dealership when they meet an agreed-upon sales goal for the specific model year or model Burdge says. Burdge. “Dealerships operate on a month-to-month basis , so at the end of the month the sales personnel is particularly eager to get more sales,” Burdge says. “At at the start of the month it’s generally more about the amount of profit per sale — so what amount of profit will be earned on every automobile sold.” How do you prepare for buying a car before you begin your search for a car It is important to consider what your needs and wants are, as well as research the models you’re interested in, and write down your budget. The car you want is the first thing you consider. Sedans, SUVsand trucks and minivans are all available at different prices and features. Once you have identified the kind of vehicle, do some research on the manufacturer and models. Certain manufacturers have better reputations and warranties. Standard features and trims are also important to consider when you are shopping. Decide if you want to go . A new vehicle may come with the latest innovations in terms of safety, comfort, and performance, however it’s priced at a higher cost and could be much less valuable in the next year. Before visiting the dealer. Online and bank lenders can offer affordable rates on auto loans therefore it’s a good idea to have an idea of your monthly payment before the salesperson starts wheeling out common tactics. Make your budget your guide throughout your shopping process. Before setting your feet on the dealership lot, it is essential to start be able to balance your car’s needs with the amount you’re able to spend. “The more you spend, the less likely that someone will talk you into buying something that isn’t suitable for you or isn’t within your budget,” Burdge says. “Make your own choices at home, and adhere to them after you go for the car lot.” The ability to trust is key to finding a bargain. Knowing the most common tactics can help you remain confident when negotiating. But it’s not the only instrument you can use. Find out about other vehicles, and know the value of your and you go to the dealership. There’s no need to be a pro — you only need to be clear on how much you’re willing to pay and what you truly need.
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The article was written by personal finance writer Dana Dratch is a personal lifestyle and financial writer who is a fan of all things money and credit. With an undergraduate degree of English as well as writing, she likes asking the questions everyone would ask if they could and then sharing the answersand also smart financial tips from experts. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate from late 2021. They are committed to helping readers gain confidence to manage their finances by providing precise, well-researched and concise details that cut complicated subjects into bite-sized pieces.
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