Insider Secrets to Buying A Car
HAVE YOU EVER BOUGHT A NEW CAR AND DROVE IT OFF THE LOT AND WONDERED TO YOURSELF IF YOU PAID TOO MUCH FOR IT?
Today I’m going to GIVE you a Simple 3 Step Game Plan to ensure you always get the best deal possible when you drive off the lot in your new car. This 3 STEP GAME PLAN will save you hundreds EVEN thousands of dollars.
NOTE: I will be referring to the Car Salesperson in this free report as a “car salesman” and as a “he” or “him”….. please know that I do this for the purpose of “ease of reading” and am not trying to be politically incorrect and do know that there are many women in the car business. In fact, my previous boss and the Dealer Principal when I worked at West Coast Nissan was Michelle Jones Ruppel, who was a fantastic leader to work for.
ANOTHER NOTE: This report is specifically geared towards a “new car purchase”, if you are in the market for a “preowned vehicle” the only difference is that the “Invoice Cost” will not be available online and will instead be the “Wholesale Cost of the individual dealer”. Unfortunately the wholesale cost is different for each preowned vehicle as it is dependent on the trade-in or buy-in value that the dealer paid for it. Therefore, when comparing the same year and model preowned vehicle the dealer cost may differ by a few hundred dollars to over a thousand or more dollars. For help with this just click the link at the end after you have read this report.
THE GAME: The car salesman’s game is a game of strategy and, like all strategic games, has a specific goal.
Insider Secret #1 — The Goal of the Car Salesman’s Game is to sell you a car or truck — that is in stock — at the highest possible price — TODAY.
He achieves this goal by following a specific proven strategy: a game plan. He learns the plan in seminars and classes. He practices the plan in role-playing workshops. He follows the plan because it works…
Selling cars is a game of strategy. And as in any strategic game, the more you know about your opponent, the better.
So to even the score and level the playing field a little bit more in your favour, here are four important facts that you should know about the salesman:
Insider Secret #2 — Facts you should know about the Car Salesman
1. He needs you more than you need him. The car salesman is under a lot of stress. Since he works on commission, he doesn’t eat or pay his mortgage or rent if he doesn’t sell a car. That’s a lot to live with. In addition, his Sales Manager is constantly pressuring him to sell, sell, sell. So despite how cool and calm the salesman may appear on the surface, you can bet that underneath he’s probably desperate to sell you a car.
2. He is not really in control. The car salesman operates under the illusion that he is in control of the car-buying situation, that he’s running the show. He’s confident and smooth. Yet in actuality, you have the final say. And the car salesman knows this. He knows that, at any point, you can simply say “no” to his offers and “no” to his test closes and come-ons and just walk away. That’s one of his biggest fears.
3. No matter what he says or does, do yourself a favour and keep in mind that it may or may not all be an act. The car-buying situation is very theatrical. The car salesman is very much an actor. And it’s safe to assume that much of his salesmanship and his lines are scripted and simply part of his performance.
4. He can’t be fully trusted. When you ask the car salesman a question, he may give you an honest answer. Or he may not. Or he may say he doesn’t know the answer because he really doesn’t know. Or he may say he doesn’t know because he wants you to think that he’s not as smart as he really is. In other words, because the car salesman is under so much pressure to sell you a car, he may say anything to get you to buy. And he’ll do it under the guise of being a nice, honest, sincere guy. So to protect yourself, it pays to never fully trust any car salesman no matter how friendly you may get with him and no matter how much you like him. Remember: I like to think of it as “keeping it real as this is strictly a business transaction”.
So, now that you know about THE GAME…. Here is a Simple 3 Step Game Plan FOR YOU TO FOLLOW.
Step One: The Best Time To Buy Your Car
Insider Secret # 3 The best time to buy your car or truck is the last two weekends of any month.
Step Two: Determine Your Car Buying Goals
How much are you willing to pay over dealer invoice cost?
Insider Secret # 4 Here’s an online resource that will help you determine dealer invoice costs.
Once you determine what Your Car Buying Goal is (ie. how much you’re willing to pay for your car) then it is time to go find your car at a dealership near you.
Step Three: Negotiating The Selling Price
All dealers of a particular vehicle brand pay the same price for their cars from the manufacturer. Therefore, theoretically they can all sell those cars for the same price. They all want to maximize their profit on each car they sell. That’s what their game is all about. But there is a specific minimum profit that they are willing to accept on each new car and that’s usually in the neighborhood of hundreds of dollars over their cost (invoice price). Buying a car at that “reasonable price” gives you the money-saving deal you deserve and allows the dealer the small profit that they are entitled to.
A reasonable price is one that represents a good deal for you and a fair profit for the dealership.
INSIDER SECRET #5: THE 5 RULES OF NEGOTIATING
So here is your game plan for negotiating the price of your vehicle:
Regardless of your financial situation, if the salesman starts asking questions about your finances and budget, take control. Just say to the salesperson: “I only want to talk about the ‘out-the-door’ selling price right now. We can discuss financing later. Sound Fair?”
Remember, you are the one who will determine the way the negotiation goes. They will constantly try to steer you to their game. It’s up to you to keep things on track. You must stay strong and focused on your buying goals.
Tell him, “I’ve done quite a lot of research online and I’m ready to make an offer” (ie. use your Carcostcanada Report as your reference to determine the new car invoice cost). Then calmly add: “Now, I’m certainly in no hurry to buy a car. However if your manager accepts my offer, I’m fully prepared and willing to sign the papers and drive the car home today.”
FIRST RULE OF NEGOTIATING: Never appear anxious, worried or desperate. Always remain calm, casual and willing to walk away from the table at any point.
Tell him: “I’ll buy this vehicle right now for $250 dollars (for example) over your invoice price (ie. you would add $250 to the Invoice Price from your CarCostCanada Report) and that would be your offer”. The actual amount you offer should be somewhat below your pre-set car buying goal figure.
SECOND RULE OF NEGOTIATING: Never negotiate down from the sticker price (MSRP). Always negotiate up from the invoice price (new cars) or wholesale price (used cars).
Once you’ve made the offer, be quiet….. don’t say another word!!! Sit patiently and wait for his response.
THIRD RULE OF NEGOTIATING: Whoever speaks first after an offer is made, is in the weaker negotiating position.
The salesman will probably insist that your offer is too low. Respond by repeating your main point: “What I’m offering you is a quick sale and an opportunity for you to get another vehicle off your lot with a minimum amount of time and trouble on your part.”
Now the salesman will do everything he can to get you to raise your bid. He certainly doesn’t want to go to his Sales Manager with such a low offer. Regardless of how much he pressures you, under no circumstances should you raise your bid.
FOURTH RULE OF NEGOTIATING: Never negotiate against yourself. Never raise your own bid until they make a counteroffer.
The salesman may tell you that no dealership can sell you the car at that price. Respond by saying, “I’m sure there’s some dealership in the area willing to do the deal. But I’m here with you now and I like you so why don’t you take my offer to your manager and let’s see what he says.”
The salesman may ask you for a deposit and ask for your credit card. Show your good faith and give him your credit card, but only after he has put your offer down in writing on a proposal sheet to take to his Sales Manager.
Then the salesman will walk over to the Sales Manager’s office with your offer. Sit back and relax. Depending on how busy the manager is you’ve probably got a long wait.
Sooner or later, the salesman will return. He may be by himself or he may introduce you to his “Sales Manager,” who may or may not be the real manager. No matter whom you talk to, your approach should remain the same: friendly and casual, but strong and focused.
Now the salesman and/or his “manager” will present their counteroffer. After he does, say nothing. Simply sit for a while (for up to a minute if you’re comfortable enough with doing that), THINKING…. they’ll probably speak first to break the tension. At the appropriate moment, show your flexibility and willingness to compromise by hesitantly raising your bid. Tell him: “OK, I’ll give in. I’ll buy this vehicle right now for $350 over your invoice cost (or wholesale value) inclusive of all fees, only additional cost is plus applicable taxes.”
FIFTH RULE OF NEGOTIATING
Always raise your offer in small increments of $100 at a time.
They’ll shake their heads in doubt. And the game will go on. Back and forth. They’ll keep coming down in their price as you keep coming up in yours. Along the way, they may try all sorts of lines, theatrics and ploys to get you to spend more money than you have planned.
Here are some suggestions for responding effectively to the lines that the car salesman and/or his Sales Manager may throw at you:
THEM: It’s impossible to buy this car at this price at any dealership.
YOU: I’m sure if I shop around I’ll find a dealership that will be willing to sell it for that price.
THEM: We have overhead. We need to make enough profit to pay for the lights, the electricity, the salesmen.
YOU: Boy, it sounds like this dealership is in financial trouble.
THEM: Don’t you like your salesman? Spend a little more money so he can feed his family.
YOU: He’s a good salesman but I work hard for my money too.
THEM: Where did you get the idea that you can buy this car at this price? Have you been visiting that “Beat The Car Salesman” website? It’s wrong and filled with lies.
YOU: I’ve done my research online and I think my offer is fair, but maybe I should check out the other dealerships to find out if you’re right.
THEM: This car commands more money in the marketplace than what you’re offering.
YOU: I guess I should check out the other dealerships to find out if you’re right.
THEM: You want this car, don’t you? Then step up to what it takes to own a vehicle of this caliber.
YOU: I think maybe I should go to another dealership and see what they have to say.
As you can see by the suggested responses, threatening to leave scares them to death. Bottom line is they absolutely don’t want you to leave and will do anything to get you to stay.
It’s important to remember that what they are really doing here is testing you. They want to know:
* Your negotiating strength
* Your physical and emotional stamina
* How easily you believe their lines
* How much you know about their game
* How much higher you’ll go in your price
* The point at which you’ll give in
So don’t fall for their lines and don’t give in. At some point, be sure to repeat your basic argument: “I am fully ready and willing to sign the papers and drive this vehicle home now.” Then point out to them that you are willing to do everything today: your financing, down payment, auto insurance and so on.
Eventually, your offer will rise to your pre-set limit — your car buying goal. When it does, freeze. They’ll try everything they can to get you to raise your offer again. Tell them frankly: “I’ve reached my limit. I can’t go any higher.” They won’t believe you, of course, and they’ll test you some more.
Again, try to remain casual, positive and friendly, especially when they’re putting on the pressure. It really helps. If they like you, they’re much more likely to give you the deal you want.
Once they realize that you won’t budge in your price (ie. your pre-set limit or your price ceiling), they’ll either sell you the car at that price — or they won’t. If they do, congratulations!!!
If They Don’t…. THAT’S OK TOO!!!
Just go on to the next dealership…. (Note: if you’re not into spending more time trying to get the lowest best deal then you may have to think about adjusting your car buying goals – ie. how much you’re willing to pay)
If they won’t sell you the vehicle at the price you want, thank them politely and leave on good terms. Don’t take this personally or think you made a mistake.
Be sure to give the car salesman and/or his “Sales Manager” a call within the next day or so. Sometimes a dealer will become surprisingly flexible in his price if you follow up with a phone call. Tell them that you’re giving them one last crack at earning your business.
And of course, you should visit other dealerships. Unless the vehicle you’re buying is “hot” and/or “hard to find”, the price you are asking for is not unreasonable.
Whatever happens, remember to use your intuition. If they get rude, if they cause you to feel uncomfortable, if things just don’t seem right, then get up and leave.
And most importantly, don’t forget that it’s all just a game. So take it easy. Relax and try to have fun.
So in summary, I’ve gone over the 3 Simple Steps to Getting the Best Deal
– Best Time to Buy
– Your Car Buying Goal
– Negotiating the Best Price
And I’ve also established that the whole sales process of buying a car is really just A GAME!!!
And Knowing THE GAME will help ease your car-buying stress levels!!!
Keep your Sanity and DON‘T take the car buying game too seriously. The car salesman is really just like an actor. And the entire car buying game is like a theatrical play, with each person playing a role – including you.
According to the “script” of the drama, you are “Mr. Customer,” the poor soul who doesn’t understand the car business and wants to pay too little for their car. The car salesman is the “Good Guy,” a perfectly innocent good-hearted chap who is only trying to help you. The Sales Manager is the “Bad Guy,” the man who sets the prices. He is the figure of authority, the “final word.“
When you are buying your vehicle, the car salesman and his Sales Manager may try to use every dramatic device they can to get you to spend more money than you have planned. They may try to convince you that you are “uneducated” about the car business. They may try to tempt you with attractive offers and deals. They may try to plead with you. They may try to beg you, coerce you, insult you, or, worst of all, intimidate you. In other words, they may try anything to get you to spend more money.
So keep your sanity by remembering that whatever the car salesman or his Sales Manager may say or do, it may just be an act.
NOW, if you just don’t feel like playing “The Game” and having to go through this whole car-buying process….. there is an alternative for you 🙂 Instead, if you want the help of someone that spent over 10 years in the business, working at 2 different dealerships (7 years on the sales floor and 3 years running an internet department)….. plus, this someone still has lots of contacts in the business!!! Let this someone deal with all of that game playing….. and bottom line is THIS SOMEONE will get the fair deal you deserve.
This someone is Big Head Joe and to find out more info and to register for help then click here 🙂 (Also, register for help if you are in the market for a preowned vehicle and need assistance).
LASTLY, read testimonials from some of my clients when I was on the sales floor by visiting here.