Salesmen-- specifically car salesmen can be some of the most unethical people in the world. Sure they’re not breaking the law, and they’re not exactly defying ethicals standards as outlined by professional institutions like the CFAI, but the unethical shenanigans that salesmen pull are more subtle, more sinister. The way that they can convince you and manipulate you into thinking that you actually want a certain product when you don’t… when you don’t even need it, is just horrible. These sinister mind games scare me every time I’m in to check out a vehicle.
Interesting note, but I remember reading a behaviorist marketing piece. They noted that the social conditioning is extremely strong when it comes to favors of any sort. So salesmen are often told to extend simple favors at the start such as a free beverages and snacks, etc because it creates a strong urge on the potential clients behalf to reciprocate. I think it holds very true.
I love buying cars and love to play the game with the salesman. I always know EXACTLY what I want when I walk in though and always know which other area dealers have the same vehicle. I love plopping a 2 inch thick folder of “research” on the desk while talking to them and stopping their pitch every couple of minutes to check something in the folder. After I flip through for a minute or two, I say something like: “Hmm, interesting. Oh sorry, please continue.” Drives them nuts. I also like to “accidentally” email the wrong dealership with some question about another dealer’s superior price quote.
i really don’t like how they become your friend while you’re in there and then once you buy the car you never hear from them again. its hard to even get their eye contact! like i’ve been used!
Black Swan Wrote: ------------------------------------------------------- > So salesmen are > often told to extend simple favors at the start > such as a free beverages and snacks, etc because > it creates a strong urge on the potential clients > behalf to reciprocate. I think it holds very > true. I forgot that part. I like to stop them in the middle of their pitch to grab a free snack too. I had 3 bags of popcorn in my last car negotiation session.
I love going in and trying to get the best price too! The key is to know the price you are willing to pay and walk away if they don’t meet it. They usually call back a few time lowering the price. The key is to say no but then call back a day later and offer then a few hundred less then their final price. Anybody else got some good tactics? EDIT: I got a story. Back when the financial crisis hit I wanted to lease a new car, nothing nice just a new civic. I saw an advertisement for 0 down and 200/month for 36months. When I came into the dealership they said it was $2000 down and like 220/month due to fees, registration, etc. At that point I said hell no, the advertisement said 0 down. I was about to leave but they kept me in there (so I knew they were willing to go down in price). After like 2hrs of arguing I got them down to $500 down and 220/month. I knew they might increase the price of the monthly lease because it also dependant on my credit (I have a great score). I ended up bouncing though. Pissed off the salesman and his boss. lol
if choosing to finance a new or certified pre-owned, they will try to “work with you” and “lower” your monthly compared to the first quote they gave you by reducing the APR. laugh at them and tell them not to touch their ridiculously high interest rate, and get to the same monthly by knocking off the price further. always refinance at your local credit union later
BiPolarBoyBoston Wrote: ------------------------------------------------------- > Anybody else got some good tactics? yeah, stay really long and don’t buy anything. just keep going along with them and waste all their time. eventually they’ll give up. this is when you start asking about possible ways to get what you want. they’ve already invested a ton of time in you and their manager has been watching…they need to close something to not look like they have been taken. start asking about what you would need for the deal to get done (pricing, extras, new parts, etc.) and lead them down your path to the car you want at the price you want. if they can’t do it let them know you’ll be back later in the week to check out another car with your wife/whoever to give them some time to get the package together. maybe even call to see if they can meet your terms. at the end of the month all salespeople are trying to meet quotas so if you bring your terms in then you have a good shot at getting exactly what you want.
I also like to call other dealers on my cell phone when the salesman goes to discuss things with his manager and I make sure the conversation lasts at least a minute after he and the manager come back. I end the call with something like: “That sounds great. I’d love to take a look at it. I’m at another dealer right now, but will stop by in 30 - 40 minutes. It was great talking to you again, see you in a bit.” On piece of generic advice, dealers typically don’t derive their profits from new car sales. They derive it from used car sales, financing and service. If you make them believe that you always service your car at the dealership where you bought it, they will be more inclined to make a better deal. They also get payments from the manufacturer at the end of the year based on the number of units sold, so they can actually sell you a car several hundred dollars below invoice and still make money. They will even be willing to honestly lose money if they think they are locking up a service customer. Remember, they get paid by the manufacturer for work done under warranty.
lol thanks guys these are awesome tactics!
If you’re going to be in the same city/town for awhile, why not look at them like real estate agents? Shop around first for a car salesman that seems genuine and knows his sh*t. Chances are you’re going to be buying another car every 3-5 years, it be good to have a buddy that could hook you up and knows your needs instead of going to a different sleaze-ball every time.
Reggie Wrote: ------------------------------------------------------- > different sleaze-ball every time. There is no such thing as a car salesman who isnt a sleaze-ball.
Seriously? You’re going to categorize every car salesman as a “sleaze-ball”? When I first told my future brother-in-law (who is a carpenter) that I graduated Univeristy with a degree in Economics and Finance and that I’m pursuing the CFA, he made some sly comment like “oh don’t forget us little people”. I hate those remark’s when you tell people your in finance. Those who are narrow-minded, like yourself, think everyone in finance is just a “capital pig chasing the big bucks” so to speak. I’ve been reading finance books since I was in grade 9. It’s just a subject that’s interested me more than any other and I think it’s a dynamic field to work in. I Hate being painted with one stroke of a brush. I’m sure salesmen do too.
You really want to stick it to the car dealership? Keep and maintain the car you’ve got. I am 46 and I have owned 4 cars my entire life. And I sold one of them only because it was a two-seater and I started to have kids. Some great financial advice: don’t dump your money into one of the worst investments you can make - an automobile.
I am so happy I just paid off my car last month. Its an old car but I hardly use it - thank god for the subway! I agree with the goes to eleven that buying a new car is daft. Driving is no fun unless you live in the sticks.
I bought a new car last year. I wanted something very specific and car was not that expensive (less than 10% of my income for that year). At this price point, I decided that it wasn’t worth spending a few weeks looking for a good used car. Of course, if this were a higher-end vehicle, I would have spent more time looking around.
i like to use cars . com and autotrader to research cars to find the one that i want and average prices. when buying the car i have now, i found the car i wanted coming from a distressed seller. he also didn’t know much about the car or how to fix the things that were broken (in dash cd player, trailer connection, loose seat controls) i built the price up of the fixes and got the price to $5k under market. to reset the cd player i just held the ‘cd eject’ and ‘cd select’ buttons for 5 seconds and it reset - what some people don’t know can cost them.
I purchased a new car in late 2009. I knew what my maximum price was from research (kelley blue book, internet searches) and negotiated down from there. For new cars, as long as you do your research, it is hard to get ripped off. One tip is to go to a small town dealership. They may not have the inventory of a large dealership in a big city, but small town people are nice to deal with and work with you on price. I went to small town dealership (about a 40 minute drive from the city I live) where the guy found me the car I wanted at a price that was very reasonable.
goes to eleven Wrote: ------------------------------------------------------- > > Some great financial advice: don’t dump your > money into one of the worst investments you can > make - an automobile. great advice for some people in LA indeed, when you find out that your monthly car payment exceeds your rent, you’re likely a dbag
Mobius Striptease Wrote: ------------------------------------------------------- > goes to eleven Wrote: > -------------------------------------------------- > ----- > > > > Some great financial advice: don’t dump your > > money into one of the worst investments you can > > make - an automobile. > > > great advice for some people in LA indeed, when > you find out that your monthly car payment exceeds > your rent, you’re likely a dbag are you calling my sister a d-bag? chicks dig porsches