Used Cars Sales Tactics Revealed
You need to understand that 9 times out of 10 times the salesperson is not really out to help you save money
as he/she says they are. The more money you save is less money they make for their dealership and less they
make on Friday's check. Which is ok, it is their job, but you can help yourself with a little information
obtained before you start negotiating on that next used car.
Working the Numbers
As you sit in the car salesman's office talking about the used vehicle you are wanting to purchase, the
salesman looks at you and says "Let me work the numbers." but what does that mean really?
Salespeople will "work the numbers" on a four square worksheet as you and them negotiate a deal. This
worksheet is broken down to cover everything from car loan payments to your trade in.
This only helps the salesperson and finance manager or sales manager figure out how much THEY will
make off of you in this deal. Not how much they can save you.
As the name suggests, the sheet is divided into four large squares:
Trade-in: How much the dealership will credit you for your trade-in. This figure is credited toward your
purchase of a new or used vehicle. But don't be surprised if they are nowhere close to what you think your
trade-in is worth. They are giving you a price that they can make a profit on later.
Purchase price of the dealer's car: This is the asking price of the car. Often a car salesman will write the
price of the car, then write "plus fees," which in most cases are sales tax, title and licensing fees.
Down payment: Do you have cash you are willing to pay up front for the used car?
Monthly payments: What is your maximum monthly auto loan payment that you are willing to make? Car
salespeople try to get the customer to focus on this figure since it most directly affects a buyer's budget.
This sales tactic is practiced all over the country in any car dealership you come a crossed. As you can see
the four parts of the sales deal worksheet are very closely connected.
Let me give you an example.
EX.
You the customer is worried about having a high monthly auto loan payment so to make the numbers work
to their advantage the salesperson will lower the monthly payment and in turn lower the trade-in value of
your car.
Now you are more satisfied with your monthly payment and the dealer is still making the same amount
because they can now sell your trade-in for more money later. Granted it may take them a little more work
but they have a ton more room to make the deal happen later on.
Avoiding the sales trap
Do yourself a favor before going onto a used car lot, hit up some of the online car sales sites like Autotrader,
or Edmunds and really see what your car is worth. Try to sell it to someone before you go look at another
car on a lot. You will get quite a bit more for the car than you would if you traded in that car on the one
sitting on a used car lot.
Also have your auto loan financing already worked out with your local bank or credit union, go in knowing
what you are able to spend a month. Having these two parts of the "four square" already off the table, you
put yourself in a much better place when negotiating the price of the pre owned vehicle you want to
purchase.
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