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If you are in the market for a new set of wheels, you need to do your homework, check reliability ratings and check the invoice price of the vehicles you are considering, along with maintenance costs and how much discount parts are going to cost you as well. You also need to know how to navigate the tricky waters of the local dealership.
Shopping fora new car can be a minefield, and if you do not know how-to handle the process you could end up spending far more than you should. Here are four things you should never my when talking to a car salesperson.
1. ”How Much is the Monthly Payment?”
Buying a car based on payment alone is almost always a bad idea. While the salesperson may be more than willing to meet your monthly budget, they may do so by extending the term of the loan, playing games with the price of your trade in and so on.
Even if you have budgeted based on monthly payment, you should always negotiate based on the sticker price of the car. There are a myriad of payment calculators out there to let you do just that, so you can get the information you need with the touch of a button.
2. ”I Love It”
No matter how enthusiastic you are about the car you just test drive, you should work hard to maintain your poker face. If the salesperson knows you love the car, he or she will be less likely to negotiate a better price or throw in additional incentives. It is even more dangerous to show your excitement if you are shopping for a vehicle in a hot category. If full-sized pickup trucks are flying off the lot, try not to let the dealer know how much you need one and how much you enjoy the test drive.
3. ”I Brought My Trade-In”
Salespeople are trained to gather information on the trade-in as early in the process as possible, but there are sound reasons to keep this information to yourself. If you reveal too much about your trade early on, the salesperson could inflate the price of the vehicle and then offer you a seemingly great deal on your trade-in.
It is best to negotiate the price of the car first and then deal with the trad e-in. If you are comfortable selling the vehicle on your own, you may get a better price by placing a classified ad and selling that way.
4. ”My Credit is Terrible”
Many car buyers think they have worse credit than they actually do. Unless you know your exact credit score, you should never reveal it to the salesperson. Even if you do know your score, it may be best to keep it to yourself. Once you settle on a price, the dealership will have plenty of time to run your credit and determine your interest rate. Revealing too much ahead of time could cause the dealer to hike the interest rate unnecessarily, costing you thousands of dollars over the life of the loan.
It is also worth your time to shop around for a loan at local banks and credit unions Car dealers make a lot of money on financing but they do not always provide the lowest rates. Shipping around is the only way to truly know you are getting a great deal.
Buying a car can be a difficult and stressful experience. But there are some things you can do to make it easier and more profitable. Knowing what to say – and more importantly what not to my- is an essential part of finding the car of your dreams and getting it into your driveway.