There's a good chance that at some point down the road (May '08?) you'll find yourself in a new car dealership showroom, checkbook in hand, eager to acquire that new set of wheels. Tip No. 1: Put the checkbook away. Far, far away. Take a step back, and chill. Being overeager is the first of many errors the amateur consumer will make in the car-buying process. If you come on too strong, you are instantly tagged as a bull's eye that the salesperson will hastily pierce. Before and during the process you, the consumer, can do some relatively simple things to ensure that self-assurance supersedes vulnerability both in the showroom and on the test drive. Do your own automotive research before entering into a conversation with a salesperson. Know the type of car you want, your price range, and the market competition. Not a car buff? That's fine, but don't let them know that. Car salespersons know their product inside and out. Let the air out of their balloon by showing them you know the product too.
Be prepared to field questions regarding other cars you are considering, and also for the salesperson to bash the competition. It is imperative that you be knowledgeable, or you'll appear vulnerable.
The salesperson will capitalize on that vulnerability by showing you more expensive cars, coaxing you with needless options, and being less generous with the numbers. Be the boss in the showroom. If you are merely on an investigative mission and don't want to be bothered by an aggressive salesperson, it is permissible to say, "Thanks, I'm just looking for now; I'll come find you when I'm ready." Once the process has started, don't waste time with a salesperson you don't like. If you get a bad vibe at the dealership, it is probably a sleazy operation. Always remember that you have the power and the right to get up and walk away.
Don't act too interested. This comes into play on a number of levels. Assuming you find a legit dealership, appearing calm and disinterested will put the power in your hands. Make the salesperson do the work, don't do it for him. When you take the car for a test drive, you may be able to take it by yourself. This is preferable, although rarely the case. Usually the salesperson is right next to you and part of his ploy is to mentally convince you to buy the car: There are no numbers involved yet; just you, the car, and your imagination. What a sales opportunity! While you drive, the salesperson will point out all of the car's positive features and convince you of just how perfect it is.
Though the car may indeed seem perfect for you, try to remove yourself from the chatter and focus on how the car feels while you're behind the wheel.
If you have questions, by all means ask them, but don't let yourself succumb to any distractive techniques. Remember you are there for the test drive, not to make a friend.
Before you seal the deal on a particular model, color and options come into play. If you know what you want, I suggest sending e-mails to the Internet managers of several dealerships and inquiring about their stock. Finding a model on the lot is preferable since special ordering more or less diminishes the opportunity for negotiation.
Go to the dealership that has the model you want on the lot. This will give you some leverage with the salesperson. When I bought my car, I knew I wanted it in Red Brawn Metallic with charcoal interior and running boards and I knew that the dealership I was going to had it on the lot. But only I knew that was the color and option I wanted. After I test drove the very car I wanted, the salesperson wanted to know if I liked the color. I replied rather indifferently, "Well the color isn't really what I had in mind ..." Bottom line: If the salesperson thinks he has to work harder to sell you the car, that's money in your pocket.
Seal the deal. Don't let the salesperson pull a fast one on you. Know the following:
1. "Invoice" is the price the dealer pays for the car. "Sticker" is the price on the window sticker the dealer wants you to pay for the car. Invoice price is generally 15-20 percent less than the sticker price. Depending on the market demand for the product, there may be some wiggle room in your favor. Kellybluebook.com and Edmunds.com can provide you dealer costs and incentives for any model.
2. Bring any prior e-mail correspondence to the table, regarding price. Maybe you wrote the manager, "For how much over invoice would you sell a base 2008 Camry Hybrid?" If the manager writes back, "$500 over invoice" you can use this to your favor when the salesperson has you at $1,500 over invoice. (With this particular example, there would be little or no opportunity to pay less than sticker, since the Toyota Camry Hybrid is a new model that is highly desirable and may even be marked up.)
3. Be aware of rebates, dealer discounts, and company incentives that are based on supply and demand. Many car companies offer special $500 rebates for new college graduates and other rebates upwards of $2,500. Keep in mind that if it is the end of a model year (October-December) the dealer is itching to get rid of its old inventory to make room for the new stuff. Expect that the deal-making process could take several hours. If the numbers just aren't adding up, let this be a red flag. Transportation fees and prep fees are often bogus and can sometimes be argued away. The salesperson will encourage extended warranties and dealer financing because they get a commission for selling these services.
In actuality, dealer financing may be more expensive than if you arrange a loan in advance, and buying extended warranties through the dealer adds to the stress of the transaction and can be done just as effectively later on.
Basically, if you are educated on the product and the process itself, sales tactics will seem like nothing more than clumsy swipes at your wallet.
Wear your knowledge proudly, stand your ground, and have fun with the process.
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