The number one emotion I felt when I purchased my first car was pure anxiety.
I’m a thrifty girl. Making any kind of purchase with a big price tag, such as airline tickets, furniture, or even a really nice pair of boots, makes me nervous in general, so buying a car was the perfect storm for a full-throttle freakout.
Worst part? Even if I were to find a bunch of cash hidden inside a car I just bought, like this one man did after buying a used sedan, I’d still feel like somehow I was bamboozled out of my hard-earned money.
Apparently, I’m not alone. According to Reddit user charlottechewie, who claims to have worked for years as a car salesman, most people, especially women, feel a lot of uneasiness when buying a vehicle.
“The worst thing that can happen to us as consumers is purchasing something and quickly regretting it,” he writes on his now-viral Reddit post. “This is called buyer’s remorse and it is a terrible feeling. Why? Well you just spent $20,000 and you are married to a monthly payment for 3–6 years.”
If you don’t want this to happen to you, it is important to know the tricks car salesmen use against you, and how you combat them. The writer is also quick to point out, that there are plenty of honest dealerships and salesmen out there. Make sure you read reviews of the business before shopping there.
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Trick #1: They're masters at emotional manipulation.
Not only does a test-drive help a potential buyer gauge how a car operates and moves, it also allows a salesman to create “a sense of ownership in your mind.” Just think about what a seller says to you as soon as you sit in a car for the first time: “Ma’am take a seat, adjust the mirrors, now adjust the seat until you are comfortable. Go ahead and turn on your favorite radio station and flip back the sunroof.” As soon as the salesperson says this, you get excited, feel a sense of euphoria, your heart beats faster, and — guess what? — “your mind is taking mental ownership of this nice new vehicle.”
As enthusiasm builds, your emotions tend to take over and the budget you initially walked in with is now more negotiable.
How to combat this…
Knowledge is power. Just knowing how salespeople use your emotions against you will increase your chances of not making a poor emotionally-based decision. It is also recommended that you sleep on the decision as well. “My rule of thumb is to never make a large purchase the same day,” he says. “This isn’t the same as picking up a Snickers while in the checkout line. This is a five-figure purchase that we will be married to for the next 3–6 years. Be smart, go home, sleep, and revisit it the next day when your mind has had a chance to tend to other matters”
Trick #2: They use monthly payments against you.
After a test drive, when you’re at your emotional peak, a salesperson will usually usher you into an office to fill out information and talk price. Car salesmen are taught to negotiate the monthly payment instead of the price of the vehicle. “It’s much easier to digest the affordability of a monthly payment than a five-figure sticker price,” he says. Yet, an affordable monthly payment does not factor in how long you'll be paying these payments or interest. When you do the math, it may add up to be hundreds, if not thousands, more than you originally intended to pay for a car.
How to combat this…
Be firm. “Tell the salesman upfront ‘I am not interested in going over payments right now, let’s stick to the price of the car out the door,’ ” says the former salesman. "You must be proactive here. A skilled salesman may even give you a rebuttal of ‘well ma’am, I just want to make sure you get something that is affordable and fits your budget.’ Just smile at your new adversary and politely say, ‘While I appreciate your concern, I have all of that figured out, please just get me the out-the-door price.’ ” He also mentions that making eye contact and smiling helps immensely.
Do this and the salesperson will get that you’re a formidable opponent. “You have now indirectly saved yourself hundreds if not thousands of dollars by directing the negotiations down this road,” he says.
Trick #3: The "Finance Manager" was once the best salesperson at the dealership.
Once you have agreed on a price for the car and a handshake has taken place, you will naturally relax. This is when the dealership sends in their shark. The next person you see, after the salesperson, is the finance manager who got the position because, “they were the top car salesman in the dealership selling 20+ cars a month.”
This position requires a master salesman, because they are selling you intangible products like warranties and interest rates.
Our expert writes an example:
“I will never forget this one customer who was an excellent negotiator. He knew what he was doing and worked us down to a super low profit. He clearly was prepared and this resulted in the dealership making around $100 on the car (Nice job!). What happened next really opened my eyes. He ended up paying $4500 on the warranty and GAP products as well as accepting an interest rate 2% higher than he should have. All of the money he had just spent his energy and time saving was washed away in the finance office.”
Plus, the finance manger gets around $500 per percentage point he charges you. So, if he sells your 4 percent APR, that’s $2,000 in his pocket.
How to combat this…
His tip to combat this one is simple — do your homework. “Be familiar with the products BEFORE you go into the finance office.”
Here are two references he recommends:
He also says that credit unions like State Farm offer cheaper products that do more if you finance through them.
To get more specific information and great examples, check out the post here.
What do you think of these tips? Have any of your own?
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