10 tactics to beat even the pushiest car salesman
Buying a car is a battle between you and the salesperson — and it isn't a fair fight.
Car salesmen do this every day, honing the high-pressure sales pitches they use to get you to buy — on their terms. The average consumer, on the other hand, enters this arena maybe once every five years.
Look the salesperson in the eye and say, 'Are you telling me that if I come back tomorrow, you can’t sell me the car?/
And there are a lot of moving parts. You have to haggle with salespeople over price and negotiate with lenders for an auto loan — all while trying to strike a deal for your trade-in. Mistakes will cost you.
So let me prepare you!
Take your time
Some car salespeople use time as a tool. They’ll draw out the process until you’re exhausted. The salesperson is going to be there all day. So if you plan on negotiating, don’t be afraid to set aside an entire day to spend at the dealership, and bring something to occupy your time while you wait out the salesperson or sales manager to counter-offer.
But you also don’t have to go through the entire process in a single day. It is fine to take multiple days to make a decision.
Don't get held hostage
When you go to the dealership, don’t get held hostage. Say: “Give me your best out-the-door price.” Then, if the salesperson offers to go back and forth negotiating with the manager, tell him to text or email you the results.
Or you can immediately establish control of the process by saying something like, “I’m here for a test drive. Tomorrow, I’ll come back and talk numbers.”
Keep your cards close to your chest
Some car salespeople receive extensive training in how to break down the needs and vulnerabilities of prospective customers. Their quick assessment of customers allows them to tap into scripted questions, lead the process, and close the sale.
Car salespeople are very specifically trained in how to persuade people. Understand what you want and how the salesman could take advantage of your weaknesses in negotiating.
One question you might hear is “How much are you looking to spend per month?” If you announce that up front, it will skew the process. It leaves you vulnerable. Insist on talking numbers after you test-drive the vehicle and are in the process of signing paperwork.
It’s fine to have car salespeople help answer some questions, but remember that they may use information against you, including vanity, family needs, or safety priorities, to upsell you on a more expensive car or options package.
Establish purchase price before you talk trade-in
Break down the purchase and keep your trade separate. The process should been done in stages and focus on only one at a time. Start with the car you want, then move to price negotiation, and leave add-ons and trade-ins for a separate discussion.
Be prepared to walk away
What if the salesperson says that if you don’t buy the car today, you’ll miss the big sale, or someone else will come to look at the car? That’s a sales tactic known as the impending event.
Here they're counting on human nature: People get more interested in having something that they know someone else wants or already has.
Suppose you’re at the car dealership looking around, and you pick out a particular vehicle and the salesman breaks the bad news to you, saying someone else already has a deposit on that car or there’s a buyer who said she'd be back later today to pick it up. That’s usually followed by the invitation to put a down payment on it or buy it right now before the other person comes back. They want you to spring for the purchase right then and there.
Remember, you can find that identical car elsewhere, whether at another dealership or on the internet. You can also simply buy something else.
So look the salesperson in the eye and say, “Are you telling me that if I come back tomorrow, you can’t sell me the car?” In other words, your best defense is to simply walk away or at least be prepared to do so. There are others cars available.
Say 'no' to the porcupine close
The "porcupine close" is a strategy where the seller “sticks” the potential buyer with a question. It could be, “If I could get you this monthly payment, would that be what it takes to get you to buy this car today?” Or “If I can get this in midnight blue, would you be willing to buy this today?”
Just say "no." Instead, tell the salesperson you are shopping around with several dealers to find the best overall deal. Once you compare your offers, you plan to make a buying decision.
Call out the Ben Franklin close
The "Ben Franklin close." Here’s how it works: The salesperson draws a line down the middle of a piece of paper, listing reasons to buy the car on one side and reasons not to buy on the other side. This is a very common sales gimmick in the auto industry and elsewhere.
You want to focus on the numbers you care about during this tactic. This is your monthly payment, your down payment, and your auto loan’s length, interest rate, and overall cost.
Know what those numbers should be, according to your budget, before you go into the dealership, and make sure you stick to those numbers. And don’t forget the insurance costs, which have increased lately.
The best way to defuse this tactic is to call out the salesperson by saying “That’s the Ben Franklin close.” Doing so will likely create an awkward moment with the salesperson, but it will also prevent the tactic from continuing. It’s a very sharp move on your part.
Deflect "choice" questions
A good car salesperson will never ask yes or no questions because they don’t want to give you a chance to say no. You will be offered a choice between two things, like whether you would prefer a model in blue or red.
Take a lesson from the political arena. Deflect the question by responding with a noncommittal answer, like saying you’re interested in a variety of colors, before switching to a different topic.
Beware the finance manager upsell
The finance manager is one of the most skilled people at the dealership. He will recommend that you pile on a bundle of extras that you don’t need. Because you’re spending a lot of money on the car, you may be encouraged to buy interior stain protection, anti-theft devices, rustproofing, and an extended warranty.
To ensure additional costs don’t add up, go line by line through your bill, looking for dealer fees you can negotiate down or avoid altogether. Some common ones to look out for are vehicle preparation fees, title fees, and gap insurance.
Know what you want and need before going to the dealership, and stick to your mission. You should ideally already have financing lined up, so constantly remind the finance manager that you have a set budget and you are not flexible.
Prepare to fight for your money
Salesmen are usually under pressure to maximize the profits on each vehicle they sell to increase their commission, and this influences how they interact with you.
The more a car salesmen convinces you to pay for a vehicle, the more profit he makes. The commission may be as high as 25% of the vehicle’s final sales price.
In addition, the dealership management offers bonuses for selling cars that may have been sitting on the lot. There are still more bonuses from the car manufacturer, called holdback, for salesmen or the dealership when meeting a sales quota on a particular model year or vehicle model.
Understanding the most common tactics will help you stay confident during negotiation. But it’s not the only tool you have. Research multiple vehicles, know the value of your trade-in, and get financing before you go to the dealership. Check with a credit union for low rates.
You don’t need to be a pro; you just need to be firm on how much you’re willing to spend and what you really need. As I always say, knowledge is power.
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