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7 minutes read. Published 17 January 2023
Authored by Dana Dratch Written by Personal Finance Writer Dana Dratch is a personal lifestyle and finance writer who is a fan of everything related to credit and money. With an undergraduate degree of English and writing, she likes asking the questions that everyone would want to ask and then sharing the answers- along with clever money management tips from experts. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers to control their finances with concise, well-researched and well-documented facts that break down complicated topics into bite-sized pieces. The Bankrate guarantee
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So, this compensation can impact how, where and in what order items appear in listing categories and categories, unless it is prohibited by law for our mortgage home equity, mortgage and other home loan products. Other factors, like our own website rules and whether or not a product is available in your region or within your personal credit score can also impact the manner in which products appear on this website. We strive to provide an array of offers, Bankrate does not include information about each credit or financial product or service. The process of buying vehicles or cars involves a number of moving components. You have to haggle with sales representatives of the car and negotiate with lenders for an auto loan as well as trying to strike a bargain for the trade-in. Making mistakes can cost you dearly and so it is essential to be prepared. “The salespeople are specially trained to protect you from your cash,” says Jeff Bartlett, Consumer Reports’ managing editor for cars. “This is a skill they do every day, and the typical car buyer purchases an automobile every five or more years. It’s not a fair battle.” Be aware of these tactics and consider the following car tips for salespeople to ensure a better chance of getting what you’re looking for from your next car purchase. Seven salesperson techniques to be aware of You will likely face aggressive sales pitches whenever you visit a dealer. Here are seven of the most common techniques you may encounter. 1. Playing out the clock Some salespeople for cars use time as a tool says Bartlett. They’ll play out the process until they’re exhausted. The salesperson will remain there for the entire day, regardless of your. So, if you plan to go, don’t be frightened to set aside an entire day to spend in the showroom — and bring something to fill your time while waiting out the salesperson. You don’t have to complete the entire process in one day. It is fine to make an option. If you are ready to make a purchase do not be held hostage. Speak up and say: “Give us your best price.” Then, if the salesperson is willing to go between you and their boss, ask them to send you the outcomes. Your plan of action: Once you arrive at a dealership, you must immediately begin the conversation by saying something like “I’m here for a test drive. Tomorrow, I’ll be back to discuss numbers.” 2. Psychological profiling Sales staff receive extensive training in how to identify the weaknesses and needs of potential customers. Their quick assessment of customers ‘ needs allows them to answer scripted questions and lead the process. “Car salespeople are very specifically trained in how to persuade customers,” Bartlett says. “You’ll want to understand not only , but your weak spots.” One of the questions that you may be asked is “How do you want to spend every month?” Bartlett says that it’s important to have that information in your purse. “If you declare this beforehand, it can cause confusion. This could make you more vulnerable.” Insist on after your test drive and are in the process of the paperwork. It’s okay to let car salespersons help you answer a few questions, but keep in mind that they can use any facts against you including the need to please family members or safety priorities and try to convince you to buy the more expensive car or . “Stay on your mission,” Bartlett says, and repeat the mantra: “Let’s focus on this. Let’s get back to that later.” The best strategy is to Break down the purchase process into stages and focus on only one at a time. Begin with the car you are looking for, then move onto the other options and save them to be discussed in a separate conversation. 3. The pressure of the “imminent moment’ You know the things you want, and you have . The salesperson tells you that if you don’t purchase the car today then you’ll be unable to make the sale, or someone else will come to see the vehicle. It’s a marketing tactic referred to as “the impending moment.” “People become more interested in having something they know someone else is interested in or already has. Salespeople for cars often make use of that,” says Ronald Burdge, a lemon law attorney. “Suppose you’re at a dealership to look around, and you choose a particular vehicle and the salesperson delivers the bad news to youby saying that there’s already a deposit on that car or there’s a buyer who said they’d be back later today in order to take it home” Burdge continues. “That’s generally followed by the invitation to put a on it or buy the car now before they come back. The imminent event might be real but most of the time, the story is just an esoteric sales pitch to get you to commit to the purchase as soon as you can.” “A dealership that does that to you will likely to do a whole lot more every chance they receive,” Burdge says. Remember, you can find similar cars in other places, whether at a different dealership or even on the internet. You can also simply buy something different. The best strategy is to look the salesperson in the eye and ask “Are you saying that if I go back next week, you won’t be able to make me buy the car?” In other words your best defense is to just walk away — or at the very least be prepared to do it. 4. The “porcupine closing” this technique, the seller “sticks” the potential buyer with a question. It could be “If I could offer you this monthly payment, will that be enough to convince you to purchase this car now?” Or “If I could get this car in midnight blue do you want to buy it now?” This strategy, called”the “if,” signals that the seller is trying to find your trigger for buying, says LeeAnn Shattuck, creator of The Car Chick website and Car Chick TV. Your strategy: Your answer to this question must be not yes, Shattuck states. Instead, explain to the salesperson you are shopping around with different dealers to determine the most competitive price. When you’ve compared the deals, you’ll need to make a buying decision. 5. The ‘Ben Franklin Close’ This is a well-known. The way it works is: The Salesperson draws a straight line across the middle of a piece of paper, listing reasons to purchase the car on one side and reasons not to buy on the other side. This is a very common marketing technique used in the automobile industry and elsewhere. “The idea is to show that in the end it is better off purchasing a new vehicle,” Burdge says. “Of course, it all depends on what they write down and how accurate it is in the first place.” It is important to concentrate on the following aspects when you use this method — including your monthly payment as well as your down payment and the length of time, the interest rate, and the overall price. “Know what those numbers should be, according to your budget, before you go into the dealership, and be sure that you adhere to the figures,” Burdge says. Your strategy: The most effective way to dispel this tactic is to identify it. Tell the salesperson, “That’s the Ben Franklin close.” This is likely to cause an awkward moment with an agent, however, it’ll keep the tactic from being repeated. 6. The ‘alternative choice close’ This technique is among the most popular, says Dan Seidman, managing director at Read Emotions and author of “The Ultimate Guide to Sales Training.” You’re offered a choice between two things such as whether you’d prefer a model with red or blue. The best car salespeople don’t ever ask you to answer a question because they don’t want to give you a chance to say no. The trick is to know that both options are offered. “In the automobile business selling everything that’s on the market,” Seidman says. “A smart consumer might say, ‘I’d like examine everything you’ve got.'” If a salesperson tries to box into a offer, do not take the bait. “You’re relaxed, you’re leisurely but you’re still not prepared to make a decision,” Seidman says. Your strategy: Take lessons from the political arena. Refuse to answer with a noncommittal answer -as if you’re interested in different colorsand then shift to a different topic. 7. The drive to the back office The finance manager is among the most knowledgeable people in the dealership, Bartlett says. They will recommend that you pile on a bundle of unnecessary items. Since you’re spending a significant amount of money for the car, you may be urged to purchase security measures for interior staining, anti-theft devices such as rustproofing, and . “If you’ve been shrewd through the process of buying a car make sure you don’t flinch at the final step,” Bartlett says. You’ll want to be specific about what you’re looking for — presumably not tacked-on or profit-driven extras and then finalize the package. To ensure that additional expenses don’t add up, go through line-by-line your invoice, looking for dealer fees you can . A few common ones to look out for are vehicle preparation fees, title fees and . Your strategy: Know what you need and want prior to visiting the dealer and stick to your mission. You should ideally already have financing in place and constantly remind the finance manager you’ve got a plan and you aren’t able to change. What factors influence a salesperson’s approach? Salespeople usually have pressure to make the most profit for each vehicle they sell in order to maximize their commissions and this affects the way they interact with you. The more a car salesperson convinces you to purchase an automobile, the greater the profit they can earn. Their commission could be as high as 25% of the final price of sale, Burdge says. Additionally, the management of the dealership provides incentives for selling vehicles that may have been sitting at the dealership. There are still more bonuses from the car manufacturer for salespeople , or the dealership when meeting a sales quota on an individual model year or year of the vehicle, says Burdge. “Dealerships operate on a monthly which means that at the close of the month , the sales staff is particularly anxious to get more sales,” Burdge says. “At at the start of the month it’s generally more about profit per sale — so the amount of profit to be made from each vehicle sold.” What are the steps to take for buying a car before you begin your search for a car, it’s important to review what your needs and wants are, then research the cars you’re interested in, and write down your budget. What you require should be the first factor you think about. Sedans, SUVs, trucks and minivans all have different prices and features. Once you know the type of vehicle, you can research the makes and models. Certain brands have better reputations and warranties. The trims and features that are standard are also important to consider when shopping. Consider whether you would like to purchase . A new vehicle may come with the latest innovations in terms of safety, comfort, and performance, however it will cost you more at the price point and will be much less valuable in the next year. Before you visit the dealership. Online and bank lenders can offer low rates for auto loans therefore it’s a good idea to have an idea of your potential monthly payments before the salesperson begins to explain the most common strategies. Use your budget as your guiding light throughout the purchasing process. Before you set to the lot of the dealer, it is essential to start by balancing your vehicle needs and the amount you can spend. “The more you , the less likely it is to be manipulated into something that won’t work for you or is something isn’t within your budget,” Burdge says. “Make your decisions at home and make sure you stick to them once you leave for the car lot.” Be confident is most important factor to getting an effective deal. Understanding the most commonly used strategies can help you remain confident when negotiating. But it’s not the only tool you have. Find out about other vehicles, and know the value of your and you go to the dealership. You don’t need to be an expert — you simply need to be certain on how much you’re willing to pay and what you really need.
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The article was written by personal finance writer Dana Dratch is a personal finance and lifestyle writer who enjoys talking everything about credit and money. With an undergraduate degree of English as well as writing, she loves asking the questions everyone would like to ask and then sharing the answers- along with 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 passionate about helping readers gain confidence to control their finances through providing clear, well-researched information that breaks down complicated subjects into bite-sized pieces.
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