Buying a new car: dealer tricks
I had been thinking of buying a car for two years. After another $ 1000 of repairs on my 1994 Buick Roadmaster (bought new) with over 180,000 miles, the time came. In the past, when I sat in a new car (at dealerships and auto shows), the comfort didn’t match my Buick’s “couch-like” seat, so I put off buying. During the last 24 months I determined the make and model, but not the color; so one Friday my plan was to check the colors at a local dealer. Subsequently, the best price would be obtained through online bidding, a proven way to obtain a competitive price.
After arriving, the salesperson took basic information and asked how much time they had available. My response was 15 to 30 minutes. Four hours later, I left without buying because the “deal” was on a car with a light interior, not the dark one that was my preference. In hindsight, what happened in those four hours was a demonstration of the best classic car sales techniques. This realization came to light a few days later, when he saw a movie in which the sales manager highlighted the tricks of the trade, he gloated about how to manipulate the customer. After the movie, I said, “this is exactly what happened to me.” Of the 14 techniques used during my four-hour test, all were mentioned in the film (except in the film, a secret microphone captured the conversation between husband and wife after the salesman left the room; this did not occur). The surprising thing is that I did not notice the sales tricks during the process. What were the techniques?
First, in the parking lot the salesman turned his back and said to follow me to the office and I did. He then obtained the keys to the model of interest and positioned the car so that I could sit in it. Although I have driven the model before, he insisted that there was no problem. After 15 minutes we returned to the office to say goodbye, how naive.
The third technique was to offer a deal that could not be refused. He listed a commercial offer twice the value of my car and eight thousand dollars off the list price! My thinking, this is too good to be true. My answer, I need to consult with the wife. No problem, he offered to use his cell phone, oven technique, remove obstacles. Now that the hook was ready, he had a potential buyer. After driving a second car in my favorite color, we returned to the office.
My trade was the next topic. Completed paperwork to determine value through an online wholesale system. He offered a thousand more of the value that somehow made me feel good even though it was a thousand less than his first offer. This was trick five. Keeping my keys, trick six.
It was later revealed that the first 8,000 discount to be quoted was at a 4,000-mile demo; therefore we discontinued negotiations on that car, rather the focus shifted to the one I just drove. Said they wanted to close the first sale of the day to get things going hence a big discount, trick seven. The next question was what price would close the deal; He asked me to sign in a notepad how much I would pay, trick eight. Any amount was fine, if it wasn’t reasonable, he would fight his manager for me, technique nine, the salesman was on my side.
The manager arrives. He says he would be losing money on this deal, “producing the car costs more than what he is offering.” Obviously, unreasonable offers were not acceptable. Then he starts the negotiations with the msrp and drops a thousand; Our previous negotiations got lost somehow, trick ten. Since the car has more options than requested, a lecture on its value follows. When I order a basic version, the manager gets upset by hinting at how much better discount is available with options, trick eleven: intimidation. After the manager leaves, the salesperson uses trick twelve, ten thousand with three-year payments and list price. This came out of nowhere as from the beginning the premise was a cash deal. However, it should be standard practice.
The manager came back with a better offer, the lowest possible price. Actually, you are losing money and you will have to take the loss of your department budget, trick thirteen. Technique fourteen, a unique offer, is highlighted by the question from both sellers: do we have a deal at this price? At this point, I’m not sure if the deal is reasonable since so many numbers have been discussed. The manager places a gong on the table to announce the first offer of the day. I’m holding the pen to sign when my instinct says no, wait for the exact car, don’t compromise on the desired interior; And don’t succumb to these pressure tactics. Somehow I manage to get my keys and leave as an exhausted individual.
My story ends when I buy the exact car I wanted from another dealership at a good but not great price, the negotiation involved an offer and a counter offer via email. Since my nerves fired; I could not tolerate any more discomfort or pressure. If recognizing these cunning and subtle techniques will make it easier for someone to buy a car, then my experience has something of value.
Jim Johnson, July 2007