Tactics car salespeople hope you don’t know
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The process of buying a new or used vehicle has a lot of moving parts. You have to haggle with car 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 preparation is important.
“The salesmen are very specifically trained to separate you from your money,” says Jeff Bartlett, Consumer Reports’ managing editor for cars. “This is a skill they practice daily, whereas the average car buyer buys a car every five years or so. This isn’t a fair fight.”
Learn these gambits and consider the following car salesman tips to stand a better chance of getting what you want from your next car purchase.
Top 7 salesperson tactics to watch out for
You will likely face high-pressure sales pitches when you go to a dealership. Here are seven of the most common tactics you could encounter.
1. Playing out the clock
Some car salespeople use time as a tool, says Bartlett. They’ll draw out the process until you’re exhausted. The salesperson is going to be there all day regardless of you. 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.
But you don’t have to go through the entire process in a single day. It is fine to take multiple days to make a decision.
When you return to the dealership ready to make a purchase, don’t get held hostage. Say: “Give us your best price.” Then, if the salesperson offers to go back and forth negotiating with their manager, tell them to text or email you the results.
Your strategy: When you arrive at a dealership, immediately set the pace of the process by saying something like, “I’m here for a test drive. Tomorrow, I’ll come back and talk numbers.”
2. Psychological profiling
Car sales staff 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 and lead the process.
“Car salespeople are very specifically trained in how to persuade people,” Bartlett says. “You’ll want to understand not only what you want, but your weak spots.”
One question you might hear is “How much are you looking to spend per month?” Bartlett says that it’s important to keep that information in your pocket. “If you announce that upfront, it may skew the process. It leaves you vulnerable.” Insist on talking numbers later after your test drive 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.
“Stay on your mission,” Bartlett says, and repeat this mantra: “Let’s focus on this. We’ll get to that later.”
Your strategy: Break down the purchase process into 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.
3. The pressure of the ‘impending event’
You know what you want and have hammered out a price. Then 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.”
“People get more interested in having something that they know someone else wants or already has. Car salespeople often take advantage of that,” says Ronald Burdge, a lemon law attorney.
“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 they’d be back later today to pick it up,” Burdge continues. “That’s usually followed by the invitation to put a down payment on it or buy it right now before they come back. The impending event may be true, but more often than not the story is just a sales gimmick to get you to spring for the purchase right then and there.”
“A car dealer who will do that to you is likely to do a whole lot more every chance they get,” Burdge says. Remember, you can find that identical car elsewhere, whether at another dealership or on the internet. You can also simply buy something else.
Your strategy: 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.
4. The ‘porcupine close’
With this strategy, 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?”
This strategy, known as the “if,” signals that the dealer is looking for your buying trigger, says LeeAnn Shattuck, creator of The Car Chick website and Car Chick TV.
Your strategy: Your answer to this question should always be no, Shattuck says. 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.
5. The ‘Ben Franklin close’
This one is a classic. 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.
“The idea is that you will see that, on balance, you would be better off buying a new car,” Burdge says. “Of course, that actually depends on what they write down and how truthful it is in the first place.”
You want to focus on the numbers you care about during this tactic — including 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,” Burdge says.
Your strategy: The best way to defuse this tactic is to name it. Say, “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.
6. The ‘alternative choice close’
This tactic is one of the most popular, says Dan Seidman, managing director at Read Emotions and author of “The Ultimate Guide to Sales Training.” You’re offered a choice between two things, like whether you would prefer a model in blue or red.
Good car salespeople never ask yes or no questions because they don’t want to give you a chance to say no. The secret: Both choices are available. “In the car business, you sell what’s on the lot,” Seidman says. “A smart consumer might say, ‘I want to look at everything you have.’”
If a salesperson tries to box you in with the alternative close, don’t take the bait. “You’re relaxed, you’re leisurely, you’re not ready to make a decision,” Seidman says.
Your strategy: Take a lesson from the political arena. Deflect the question by responding with a noncommittal answer — like you’re interested in a variety of colors — before switching to a different topic.
7. The trip to the back office
The finance manager is one of the most skilled people at the dealership, Bartlett says. They 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.
“If you’ve been strategic throughout the car buying process, don’t blow it with this final stage,” Bartlett says. You’ll want to be clear about what you want — presumably not tacked-on, profit-driving extras — and finalize that package.
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.
Your strategy: 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 consistently remind the finance manager that you have a set budget and aren’t flexible.
What affects a car salesperson’s tactics?
Salespeople 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 salesperson convinces you to pay for a vehicle, the more profit they make. Their commission may be as high as 25 percent of the vehicle’s final sales price, Burdge says.
In addition, dealership management offers bonuses for selling cars that may have been sitting on the lot. There are still more bonuses from the car manufacturer for salespeople or the dealership when meeting a sales quota on a particular model year or vehicle model, says Burdge.
“Dealerships operate on a monthly sales cycle, so at the end of the month the sales staff is particularly anxious to make more sales happen,” Burdge says. “At the beginning of the month, it’s usually more about the profit made per sale — so how much profit is to be made on each vehicle sold.”
How to prepare to buy a car
Before you embark on car shopping, it’s important to review what your wants and needs are, research the vehicles you’re interested in and nail down your budget.
- The type of vehicle you need should be the first factor you consider. Sedans, SUVs, trucks and minivans all have different price points and functionality.
- Once you know the type of vehicle, research makes and models. Certain manufacturers have better reputations and warranties. Trims and standard features should also be considered when you are shopping.
- Decide if you want to go new or used. A new car may have the most recent advancements in safety, comfort and function — but it comes at a higher price point and will be worth significantly less in a year.
- Secure outside financing before visiting the dealership. Banks and online lenders offer competitive rates on auto loans, so it makes sense to get an idea of your potential monthly payment before the salesperson starts wheeling out common tactics.
- Use your budget as your guiding light throughout the shopping process. Before setting foot on the dealer lot it is vital to find the right amount by balancing your vehicle needs and the amount you can spend.
“The more you decide before you go shopping, the less likely it is that someone will talk you into something that won’t work for you or that you can’t afford,” Burdge says. “Make your choices at home and stick to them once you leave for the car lot.”
Confidence is the key to a good deal
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.
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.