Car Dealers Always Ask This Question: Here’s How You Should Answer It
Buying a car this year? You’ll want to research the latest models, read consumer reviews, and test drive the vehicles you’re considering. You should also make sure you have your monthly budget in place, including all your fixed and discretionary expenses, and know how much you can afford in car payments each month.
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When you walk into a car dealership, you should have all this information in mind. However, there are certain things you should never say to the salesperson, according to Ray Shefska of Your Advocate Alliance.
In a CarEdge video on YouTube, Shefska explained, “One of the first things a salesperson is going to say to a customer is: ‘What are you looking for as far as your monthly payment is concerned?'”
If you share a dollar amount, the dealer will follow up with another question, asking, “Up to…?”
At that point, the average customer is likely to edge up the price a bit. That’s a mistake, Shefska said.
“You never want to tell the salesperson what that comfortable monthly payment is for you. They can stretch out the term to get you into that monthly payment,” he said.
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A Car Salesperson May Obscure Total Price, Or Extend the Term
The salesperson will also keep the actual selling price hidden, Shefska said, “So your eye is off the prize.”
Using this sales tactic, the dealer can actually add thousands of dollars onto the cost of the car, so they’re selling it for more than the MSRP. Meanwhile, might think you’re getting a deal because the monthly payments fit your budget.
Instead, walk into the dealership knowing what the vehicle is worth, how much the dealer paid for the vehicle based on your research, and how much you’re willing to pay.
If the salesperson tries to focus on monthly payments, shift the conversation to your offer. Consumer Reports advised starting with your lowest offer and negotiating up, not negotiating down from the MSRP.
After you’ve locked in the price, Consumer Reports said, then you can negotiate financing rates and the trade-in price for your current vehicle.
Using these tactics can put you in the driver’s seat to get the best deal on a new car.
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This article originally appeared on GOBankingRates.com: Car Dealers Always Ask This Question: Here’s How You Should Answer It
