The 4 Worst Things To Mention When Shopping For A Car
Your old clunker is ready for the junkyard. Years spent replacing hoses, fuel filters, alternators, and catalytic
converters are coming to an end. In nearing its last breath, your vehicle has sent you to the dealership in
order to find a replacement. The price you end up paying for the model you want has a lot to do with your
approach. Say the right things and you’ll improve your odds of securing a good deal. Utter the wrong things
and you might find yourself saddled with a contract you’ll come to regret.
This article will provide a list of four things you should avoid mentioning when you’re visiting the
dealership lot. Keep the following items to yourself until you agree on a price, and you’ll avoid becoming a
salesperson’s target.
Tip 1 – You Have A Trade-In
Trading in your clunker is convenient because it releases you from the burden of having to sell it on your
own. Moreover, the dealer may be willing to lower the price of your new vehicle by a few hundred dollars. The problem is, if you mention a trade-in before you negotiate a price for the new model, you’re unlikely to come out ahead. Doing so gives the salesperson more room to “work the numbers” in the dealership’s favor.
If you’re thinking about trading in your current car, avoid mentioning it until you and the dealer have
negotiated a price for the new one.
Tip 2 – You’re Desperate For A Vehicle
As with any type of negotiation, your ability to leave the dealership without a contract in hand
gives you plenty of leverage. The last thing you want to do is tell that person you’re desperate to buy a new vehicle. If the dealership knows you’re anxious to buy, they might not be willing to extend more attractive terms.
Be willing to walk away from the lot without buying a car. At the very least, if you’re desperate, keep
that information to yourself. When the salesperson realizes that he or she is about to lose a sale, they may
become more flexible with the price.
Tip 3 – You Need Low Monthly Payments
Being on a tight budget means you need to watch your inflows and outflows carefully. The lower your monthly payments, the better. Unfortunately, a lot of dealers use this as a lever for working in thousands of dollars in profit for themselves. They can easily lower your monthly payment by $100 or more simply by extending the length of your financing terms. It sounds like a good deal until you realize you’re paying more for your car (through interest) than is reasonable.
Before you start negotiating a price, determine the total amount you’re willing to spend for the car,
including interest. Once the price has been settled, work to lower your monthly payments.
Tip 4 – You Want An Extended Warranty
Extended warranties on new vehicles are a cash cow for dealerships because few consumers understand how they work. Suppose you’re thinking about buying a car with a standard factory warranty of 5 years or 60,000 miles.
Further imagine you’re only planning to drive 12,000 miles a year and will sell the vehicle in 5 years.
Chances are, the factory warranty is going to cover any problem you might experience. Buying an extended warranty can duplicate your coverage and in that case is a waste of money.
When the time comes to buy a new car, review the four items above. Keep in mind that the things you avoid mentioning to the salesperson can have a positive influence on the terms you secure from the dealer.
Regardless of how friendly the salesperson seems, there’s a good chance he or she is putting their interests in front of your own.
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