Tactics car salespeople hope you don’t know Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial choices by providing you with interactive tools and financial calculators that provide objective and unique content, by enabling you to conduct research and compare data for free – so that you can 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 Earn 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 the site, such as for instance, the order in which they appear in the listing categories in the event that they are not permitted by law for our mortgage or home equity, and also other home loan products. This compensation, however, does affect the information we provide, or the reviews that you see on this site. We do not cover the full range of companies or financial offerings that could be available to you. Industrieblick/Adobe Stock
7 min read Published 17 January 2023
Written by Dana Dratch Written by Personal Finance Writer Dana Dratch is a personal finance and lifestyle writer who loves to talk about everything related to credit and money. With a degree of English and writing, she likes asking the questions everyone would ask if they could and sharing the answers — along with clever money management tips from experts. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are dedicated to helping their readers to manage their finances by providing concise, well-researched and well-documented facts that break down complicated topics into bite-sized pieces. The Bankrate guarantee
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We are compensated for the placement of sponsored products andservices or through you clicking certain hyperlinks on our site. So, this compensation can affect the way, location and in what order items appear within listing categories in the event that they are not permitted by law. We also offer mortgage, home equity and other home lending products. Other factors, like our own rules for our website and whether or not a product is available within your area or at your personal credit score may also influence the way and place products are listed on this site. We strive to provide an array of offers, Bankrate does not include details about each credit or financial product or service. The process of purchasing a or vehicle is a complex one with many moving parts. You must negotiate with car salespeople about price and bargain with lenders about an auto loan as well as trying to negotiate a fair deal for your trade-in. Making mistakes can cost you dearly the money, so being prepared is crucial. “The salesmen are very specifically trained to separate you from your money,” says Jeff Bartlett, Consumer Reports’ managing editor for automobiles. “This is a skill they practice daily, whereas the typical car buyer purchases one car every five or more years. It’s not a fair battle.” Take note of these tricks and think about the following tips for salespeople to ensure more chances of getting the car you’re looking for when you buy your new car. Seven salesperson techniques to keep an eye on There’s a good chance you’ll be confronted with aggressive sales pitches whenever you go to a dealership. These are the seven most well-known tactics you could come across. 1. Playing with the clock car salespeople use time as a tool says Bartlett. They’ll play out the procedure until you’re exhausted. The salesperson is going to stay all day long, regardless of your. Therefore, if you’re planning to visit the dealership, don’t hesitate to set aside an entire day to spend at the dealership — and take something to entertain your time while waiting for the salesperson to arrive. But you don’t have to complete the entire process in a single day. It is fine to make a decision. When you’re looking to purchase do not be held hostage. Tell the salesperson: “Give us your best price.” If the salesperson offers to go back and forth with their boss, ask them to text or email you the outcomes. The strategy is to arrive at a dealership, you must immediately establish the pace of the conversation by saying “I’m here for testing the car. Tomorrow, I’ll return to discuss numbers.” 2. Psychological profiling Car sales staff are provided with extensive training on how to identify the requirements and weaknesses of prospective customers. Their quick assessment of customers allows them to tap into scripted questions and guide the conversation. “Car salespeople are very specifically educated in the art of convincing people,” Bartlett says. “You’ll need to know not only , but your weak spots.” One of the questions that you may be asked is “How much do you intend to spend each month?” Bartlett says that it’s crucial to keep that information in your pocket. “If you announce that upfront, it may skew the process. This could make you more at risk.” Make sure to insist on it following your test drive when you are currently signing documents. It’s fine to have car salespersons help you answer a few questions, but be aware that they can use any facts against you including desires for family, vanity or safety priorities and try to convince you to buy a more expensive car or . “Stay on your mission,” Bartlett says, and repeat this mantra: “Let’s focus on this. Let’s get back to that later.” The best strategy is to break down the buying process into phases and concentrate on only one at each step. Begin with the car you want, then move to and leave add-ons and to be discussed in a separate conversation. 3. The stress of the ‘coming event’ is a constant reminder of what you want and have . Then the salesperson says the if you do not buy the car today then you’ll be unable to make the sale, or that someone else will come to see the vehicle. That’s a sales tactic known as “the coming event.” “People are more interested in getting something that they know that someone else would like or already has. The salespeople at the car dealership often take advantage of this,” says Ronald Burdge who is a lemon law attorney. “Suppose you’re at a car dealership and you pick out one particular car and the salesperson delivers the bad news to you, saying someone else already has an investment in that vehicle or that there’s a buyer who stated they’ll be back later today to pick it up” Burdge continues. “That’s usually followed by the request to place a deposit price on the car or buy it now, before they return. The imminent event might be true, but more often than not the story is just a sales gimmick to get you to spring for the purchase immediately.” “A dealership that will do that to you is most likely to offer a whole lot more every chance they get,” Burdge says. Keep in mind that you can get similar cars elsewhere, whether at another dealership or even on the internet. It is also possible to purchase something different. Your plan: Look at the salesperson’s eyes and ask “Are you telling me that if I come back the next day, you’ll be unable to offer me the vehicle?” In other words, your best defense is to leave — or at the very least be prepared to do it. 4. The “porcupine closing” this method, the dealer “sticks” the potential buyer with a question. It could be “If I were able to offer you this monthly installment, would this be enough to get you to buy this vehicle today?” Or “If I can get this in midnight blue do you want to buy this now?” This strategy, known as”the “if,” signals that the seller is trying to find your trigger for buying, says LeeAnn Shattuck, the creator of the Car Chick website and Car Chick TV. Your approach: Your response to this question must always be not yes, Shattuck states. Instead, explain to the salesperson you are shopping around with several dealers to find the most affordable price. After you have compared your offers, you plan to take a decision. 5. The ‘Ben Franklin close’ This one is a classic. The way it works is It’s when the salesperson draws a line down the middle of a piece of paper, stating reasons to buy the vehicle on one side, and the reasons to not buy it on the other. This is a popular marketing technique used in the automobile industry and elsewhere. “The idea is that you’ll see that on the whole, you would be more likely to buy a brand new vehicle,” Burdge says. “Of course, it all is contingent on what the buyer writes down and how accurate it is in the first place.” It is important to be focused on the following aspects during this strategy — including your monthly payments, your down payment, and the length of loan, interest rate, and total price. “Know what those numbers should be, based on your budget prior to when you go into the dealership, and make sure to stick to those figures,” Burdge says. Your strategy: The best method to stop this tactic is to name it. Tell the salesperson, “That’s the Ben Franklin close.” This is likely to cause an awkward situation with an agent, however, it will also stop the technique from continuing. 6. The alternative choice close This tactic is one of the most popular, says Dan Seidman, managing director at Read Emotions and author of “The Ultimate Guide to Sales Training.” The client is given a choice between two things that could be a matter of whether you’d prefer a model in blue or red. Good car salespeople never ever ask you to answer a question since they don’t want offer you the chance to refuse. The secret: Both choices are offered. “In the car business selling what’s on the lot,” Seidman says. “A smart consumer might say, ‘I’d like look at everything you have.'” If a salesperson tries to box you in with the alternative offer, do not take the bait. “You’re comfortable, you’re slouch and you’re not yet ready to make a choice,” Seidman says. The strategy you can use: Learn a lesson from the political world. Answer the question by offering a non-committal responselike you’re interested by a variety of colors -and then switch to a different subject. 7. The drive for the office back The finance manager is among the most experienced people working in this dealership Bartlett says. They will recommend that you pile on a bundle of things you don’t really need. Because you’re spending lots of money on the car, you may be encouraged to buy security measures for interior staining, anti-theft devices including rustproofing and . “If you’ve taken your time through the process of buying a car make sure you don’t flinch at this final stage,” Bartlett says. You’ll want to be certain of what you’re looking for and not add on additional profit-making features and finalize that package. To ensure that additional expenses do not add up, you should go line by line through your bill, looking out for fees from dealers that you could . Some common ones to look out for are vehicle preparation charges along with title fees . Your plan: Determine what you need and want before going to the dealership and stay true to your goal. It is best to have financing lined up and you should always remind the finance manager you’ve got a plan and you aren’t able to change. What factors influence a salesperson’s approach? Salespeople are typically under pressure to maximize the profits on each vehicle they sell to increase their commission, and this affects the way they interact with you. The more a salesperson can convince you to buy an automobile, the greater profit they make. Their commission may be up to 25% of the final price of sale, Burdge says. In addition, dealership management provides incentives for selling vehicles that may have been sitting at the dealership. There are also additional bonuses from the manufacturer of the vehicle for salespeople or the dealership when they meet a sales quota on the specific model year or model Burdge says. Burdge. “Dealerships are run on a monthly basis and at the end of the month the sales staff is particularly anxious to get more sales,” Burdge says. “At at the start of the month it’s typically more about profit per sale. So the amount of profit to be made from each automobile sold.” How to prepare to purchase a car prior to you embark on car shopping It is important to consider your requirements and desires. are, research the vehicles you’re interested in and nail down your budget. What you require is the primary factor that you take into consideration. Sedans, SUVsand trucks and minivans are all available at different price points and functionality. Once you know the type of vehicle, research makes and models. Certain brands have better reputations and warranties. Standard features and trims must be considered when you are shopping. Choose if you’d like to buy . A brand new car could have the latest advancements in terms of safety, comfort, and performance, however it comes at a higher price point and will be much less valuable in the next year. before visiting the dealership. There are online and banks that provide affordable rates for auto loans and it makes sense to get an idea of the potential monthly payment before the salesperson is able to start introducing common methods. Use your budget as your guiding light throughout the buying process. Before setting foot on the dealer lot it is vital to make sure you are balancing your needs for your vehicle and the amount you can spend. “The more you spend, the less likely it is that someone will talk you into something that won’t work for you or is something you can’t afford,” Burdge says. “Make your decisions at home and make sure you stick to them when you head for the car lot.” Be confident is most important factor to getting a good deal Understanding the most commonly used strategies will help you stay confident when negotiating. But it’s not the only tool you have. Explore different vehicles, understand the value of your and when you visit the dealership. It doesn’t matter if you’re an expert — you only need to be clear on the amount you’re willing to spend and what you actually need.
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The article was written by personal finance writer Dana Dratch is a personal finance and lifestyle writer who loves to talk about everything related to credit and money. With a degree in English and writing, she enjoys asking the questions people would ask if they could and providing the answersand also smart financial tips from experts. 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 the confidence to control their finances through providing detailed, well-studied facts that break down complicated topics into digestible pieces.
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