Do you find purchasing a new car exhausting? Especially the part where you have to deal with cheesy salespeople at the car dealerships? If you're like most people, then you probably answered yes. If you enjoy it, you might want to consider working in the industry (check our careers page-insert wink emoji). With our extensive background in selling and buying cars, we're here to lay out some easy car buying tips on how you can beat the car salesperson every time. It's your vehicle purchase, so you should be in control, not the car salesman.
Remember when your mother told you to play nice? We aren't going to argue with your mom, but we are telling you to be careful when the car salesperson is overly friendly. Trust us, their fancy suit, salesman walk, and cheerful voice is all intentionally planned (and rehearsed) and have been part of the car buying process for decades and stemmed from the world of used car dealerships. Stay alert so you can recognize cheesy lines from the salesperson whose primary job is selling cars.
Arm Yourself With Knowledge
One of your greatest weapons against a pushy car salesman is to know your stuff. By that, we know what vehicles are in the showroom, the price of the car you are looking to buy, and your budget. To make your buying experience as pleasant as possible, do your research ahead of time. Before setting foot in a car dealership, call or email a few car dealers ahead of time and ask (flat out) what their lowest price is on the vehicle(s) you are interested in. You know that as soon as you step on the car lot, your time could be wasted on looking at cars you don't like, so don't feel bad about wasting their time with a phone call. Ask them if they have any incentives or rebates going on and when you are negotiating, use the information you've collected from all the dealerships against each of them to ensure you are getting the best price. Surely you know someone or know someone who knows someone who has driven a car you are interested in or has dealt with the dealership(s) you are visiting. Use that to your advantage by asking them about their experience with the car dealership and their opinion of the vehicle, whether they bought a new car or used car. The internet is your friend, and there is no shortage of information in today's world. Take the time to research professional and personal reviews on sites such as Edmunds, Kelly Blue Book, and Consumer Reports and see the rankings on various vehicles.
Understand the Difference
The automotive world can be tricky when understanding new vehicle pricing. Here's a breakdown of the essential numbers car buyers should know.
- MSRP is the manufacturer's suggested retail price. The automaker, i.e., Toyota, Honda, Dodge, etc., thinks the price of the vehicles should be sold at. By no means does the dealership you are dealing with have to stick to that price, and (believe us) they don't, especially on new models.
- Invoice Price is what the dealer pays the manufacturer for the new vehicle. Be careful on this one because a sales manager will often tell you they are giving you the price they paid for the car (invoice price) to make you feel like they are doing you a huge favour. However, even if the car deal you make is lower than the invoice price, the dealership is still making money based on the incentives and bonuses they receive from the manufacturer. With that said, determine the invoice price and negotiate as close to that as possible on your car purchase.
- Market Price is what car buyers are paying on average for a vehicle. Be extra cautious here, as many consumers have fallen victim to a car salesman's charm.
In addition to knowing the difference in pricing structures, familiarize yourself with some standard slang terms. To name a few, ACV is the actual cash value of your trade-in. A "chisler" is a customer who stops at nothing and will haggle over the most insignificant amount of money. When the salesperson says they have to speak to their GM, they refer to the General Manager responsible for the operation of the entire dealership. During the final stages of negotiations, the car salesman will tell you they need to speak to their GSM, the General Sales Manager, and is responsible for the retail floor.
Trade-In Value is Powerful
Do not, we repeat, do not mention you would like to trade in your vehicle until the end. When you say it, the salesman instantly changes their approach and does some magic trick to convince you that you are getting the best deal if you buy a car today by trading in your vehicle. Wrong. Knowing your trade-in value will help you beat them at their own game.
When it Comes to Price
We will start by saying, if it sounds too good, it probably isn't true, and you should be aware of hidden costs. You hold power, and you should be upfront from the beginning that you want the salesperson to be transparent. PS - that’s what we’re all about at FFUN Cars. When it comes to purchase price, focus on that and not your monthly payments. To fully understand what you are paying, you need to know the total purchase price. If the finance manager keeps talking in monthly payment terms, when adding it up over the car loan terms, you are most likely paying way more than you thought you were, especially if you are a first-time buyer. Finance managers will use monthly payment amounts to entice you because they are less shocking than the hefty purchase price, but they are fooling you. The monthly payment amount (although it seems low) most likely has extended warranty cost added in, along with interest rates you may not like. Tread carefully here. Your best option for getting the best car loan options is to get approved with your bank or credit union before visiting car lots. Or, save yourself the time and get approved here in less than two minutes. Rate shopping is crucial, and depending on your credit score, the rates can vary significantly.
Pro Tips to Remember
Some quick tips to keep remember when going through the car buying process.
- Try not to fall in love with the first car(s) you look at. If you do, don't let the car salesperson know that you have.
- Patience is key. You don't have to buy a car the same day you start your search. There are enough vehicles out there and more than enough hungry car salesmen who will continuously follow up with you.
- Have a plan. That plan can include the dealerships you plan to visit and an exit strategy from each one. On that note, don't shop at only one car dealership.
- Test drive every vehicle and don't feel bad about it. A not so big secret, if you shop at FFUN Cars, we offer a 24-hour test drive experience. It’s just one of the many benefits of buying from us.
- Don't rule out used cars; they are just as good. Plus, they are (often) cheaper.
To sum it all up, you have everything you need to beat the car salesperson and their profession, but you better be ready for the hassle that comes with it. Or, you can forget the whole car dealership experience and shop at FFUN Cars, where you can buy online, in-store, or a combination of the two. It’s the new way of buying a car and we know you;ll love it. Your car shopping starts here.
