Avoiding Pressure From Salesmen

When should I mention my trade-in?

As you begin your negotiations for a new vehicle, quite often the dealer and salesperson will ask if you have a trade-in to conclude in the deal, and that's their way of knowing just how much you're going to be able to provide as a down-payment towards that new vehicle purchase. Introducing the idea of a trade-in can be really be introduced at any point of negotiations because as a trade-in you're going to get the lowest value for the vehicle anyway. There's really no savings by mentioning a trade-in sooner or later in the game.

What is a car salesman doing when he walks away from negotiations?

If your salesperson finds it necessary to continue to take a new negotiation or a new price offer off to some mysterious office in the back, they're playing a time-honored game with you. Basically, making you feel as if you're really squeezing them for every last penny. Quite often, when the salesperson is going into that mystery room to see the sales manager, they're going back there, having a laugh, trying to figure out a way to squeeze that potential buyer for as much money as they can, there's no magic or mystery to this process. It's all about having the confidence to get it to the price that you're comfortable with and then doing the deal at that price. You will also be encountering sales people that will leave and then bring their sales manager back. That sales manager is probably one of the most savvy people on the entire dealership floor. At that point, really hold your guard up high because you're now going to be getting the attention of their better sales staff.

Should I reveal to the car salesman what I am willing to pay for my new car?

Never. Always hold that firmly to your chest. Keep that number to yourself and allow the salesperson to discover it. Once they've discovered it, privately know that you're there, and then close the deal. But never, ever offer what your pain point is or what your lowest price is. Never, ever mention monthly costs in this process. You always want to be going after the full transaction price of the vehicle and what point you want that to be. Never allow the salesperson to know what your monthly lowest price will be or what your willing to accept. Because that's just fuel for them to build a program which will assist the dealer and the dealer's business and not your own. One tactic is to say well, you're shopping for a vehicle that we're not able to get to that price. Maybe you're trying to take on more vehicle than you can afford, so let us show you a lesser vehicle, but then pump up the interest rate, the term of the loan, whatever the case may be to make even more on that lower profit vehicle. So that's why it's important to stay firm and don't allow the salesperson to guide the process. You're in charge of the process. If you don't sign, they don't make a penny. You always have the power.

What's the difference between a "car sales manager" and a "car salesperson"?

The car salesman and the car sales manager are both salespeople, just at different levels within the organization structure of the dealership. The car sales manager is probably a person who's got more experience, has been very successful in the salesman process and has now been allowed to sit in a quiet office somewhere - basically wheeled out when it's time to really bring out the hammer or close the strong deal. The message in this is the first person you meet with is probably not the person you're ulitimately do the negotiations with, so be prepared that when the manager comes out, that's when the real games begin.

What is a "freight charge"?

Destination charges can also be known as freight charges. A freight charge is the cost of bringing the vehicle from the factory to the dealership.