You always have the power to walk away
When a car salesperson seems to be saying things that just seem a bit untrue or if the dealer doesn’t want to make a deal that’s in your favor, you can always walk out and get the same car for a lower price at another dealer. You may have to wait a bit if the other dealer doesn’t have the exact car you want in stock, but you’ll still get the car you want. At any point of the buying process, you are free to walk away but their main goal is to convince you, not to leave without making a purchase so that you can’t comparison shop. This is an enormous amount of power and the salesman knows this.
Carefully study these tips before you head off to the dealer to make your purchase. It is a lot to take in and remember, but it is going to help you get a better deal on your car.
Seal The Deal Quickly. You do not want to be stuck in the negotiating room for hours. When you know what you want, and you know how much you want to pay, you should not have to waste anyone’s time.
Tell the sales person that you want the papers signed in less than 30 minutes and if it takes longer than that, you’re going to walk out.
Once you know what you want, and you make an offer, let the salesperson know you do not have a lot of extra time. You need to get the paperwork done in less than thirty minutes. If that seems a bit too pushy for your personality, consider telling the sales person you only have 30 minutes before you have to leave. The longer they keep you in the finance managers office, the more time they have to slip in extra sale options that you do not need. If you are not careful, you will see the price going up before your eyes.
The most important things to take away, though, you are the person who’s bringing the money to the table, so you should always have the upper hand in the negotiations.
Remember it is all about the sales price, if you have to get a loan with a high rate you can always shop refinance loans later to get a new loan with a lower interest rate.
Dealer Closing Techniques
Buying a new car can be an exciting process. It can also be anxiety-producing if you do not know what to know when buying a car. The dealer is there to sell you a car, and they do not make money unless you buy. There are several ways that they will get you to make a purchase decision if you are on the fence or unsure. Knowing these common closing techniques will make you a more savvy shopper and prepare you for the car-buying process. Your dealer can attempt to hide excessive fees by calling them something relevant during the closing paperwork.
The Assumptive Close
This closing technique simply assumes that you will buy. The salesperson will treat you as though you have already made the purchase decision and are simply waiting to attend to the technical details. The assumptive close is the most common of car salesperson tricks that salespeople will use to sell you a car, and it is also the most subtle. If you are not paying attention, you could find yourself buying a car before you realize what’s happening.
Common ways that salespeople assume the sale are by starting to work out logistical details with you at the end of their sales pitch. They may ask you if you will take it in blue or black. They start filling out the sales slip or ask the spelling of your last name so they can start the finance application. They may ask if you want to take delivery today or tomorrow. They may start asking you for your driver’s license so they can make copies. The key here is that they do not ask if the car is something that you want, they simply assume that you do and go from there.
Give and Take
If you are on the fence about buying the car, the salesperson may give you something then take it away to create a sense of loss. People do not like losing or being told that they cannot have something. In this common technique, the salesperson may take you on a test drive, showing you all of the wonderful features the car has to offer. When you pull into the lot, he will get out and give the keys to another salesperson so they can take a different buyer on a test drive–in your car! This gives you the sense that you could potentially lose this car if you do not act quickly. This is a common technique that uses the idea of scarcity to get you to make a quick decision.
Another variation on the give and take close is the limited time discount. The salesperson may sell you on the car of your dreams, telling you how great it is, then tell you he has to make sure it is still available. He may first tell you that the car is no longer available, or that the price that he quoted has gone up. This will create a sense of disappointment and loss in the buyer. He will then scramble around and “find” a car or a good deal for you. This close appeals to emotion and is highly effective in getting people to buy.
The Affordability Close
Sometimes it is simply the price that is standing between you and a brand new car. Dealerships and sales people know this, and they will try to break down every barrier possible to get you into your new car. The salesperson will appeal to your budget, asking you how much you are willing to spend. He will then present you cars that are within the range of that price, or maybe a little higher. The salesperson may also break down the price into weekly increments. If the price is $400 a month, he may tell you that it breaks down to $100 a week, or $13 a day. These smaller prices make it easier for you to justify the price and is one of the ways that salespeople overcome a price objection.
Ask the Manager Close
At some point in the negotiation process, your salesperson may get a sense that you want to buy but are reluctant for some reason. He will see that you may be considering making the purchase today, but are unsure of whether you want to make the leap. This is when it is time for him to pull out all of the stops and make sure you walk away with a car. Remember that if you do not buy, their time would have been wasted, so they will do what they must to get you to buy that car.
The salesperson may tell you that he can get you a good deal on the car, but he is only authorized to discount a certain amount. He may have to consult his manager to get authorization to lower the price. In this technique, you may be seated where you have a clear view of the manager’s office. This is deliberate. He will go into the office, make grand gestures, pace around the desk and generally make a huge spectacle of driving a hard bargain with his manager. The salesperson wants you to think that he is working hard to get you the best deal, This is the time it is important to know how to buy a car from a dealer and not get tricked.
In another spin on this technique, other salespeople may barge into your salesperson’s office, attempting to get help to negotiate a car price for their customer. Your salesperson may help them find a bargain or get a discount, giving you the impression that everyone at this dealership is committed to getting you the best deal possible.
Another variation on the “ask the manager” close is one in which the salesperson will bring the sales manager in to talk to you and convince you to buy. This may be a subtle action. The sales manager may “happen” to be walking by and ask you some routine question. From there, he will start to try to sell you the car, and before you know it, there are two salespeople there working to convince you to drive it home today. It changes the dynamic of your relationship with the salesperson and makes it more likely that you will buy the car immediately.
The Three Yes Close
A lot of sales are based upon psychology. The salesperson is not necessarily trying to get you to buy something you don’t want–you visited the dealership after all. He is, however, trying to get you to make a decision today, which is where the resistance comes in.
In the “three yes” close, the salesperson will ask you questions guaranteed to generate a “yes” response. This will prime your brain to start thinking about affirmative answers to questions that are yet to come. He may say, “did you like the way the car drove?” At this point, you will say “yes.” He will follow-up by saying, “is red the color you liked?” Once again, you say “yes.” Finally, he will say, “so will you be taking this car today?” At this point, many people will instinctively say yes and decide to purchase immediately.
The Either, Or Close
Similar to the assumptive close, this technique will assume you have already made your decision to buy the car and are just deciding between two options. In the “either or” close, the dealer may say, “will this be in just your name or your spouse’s as well?” The salesperson may also say, “will you take this in red or black?” Once you have chosen either one or the other, you have committed to buy the car. This usually happens before you bring up any other objections and is one of the first closing techniques that your salesperson will use.
The Ben Franklin Close
Ben Franklin used to make major decisions by taking a sheet of paper, making two columns and writing the pros and cons of each decision.
Salespeople will often use this close, making sure that the pro column is longer than the con column. This is a great technique for people who need visual cues.
When it comes to your next car buying venture, understanding common closing techniques will help you with how to negotiate a car price. We hope you can use these tips for buying a car from a dealer. being able to recognize car salesman tricks will make you better prepared to negotiate a car deal that will work for you.