Buying a car is like playing a long, exhausting chess game that in the best-case scenario ends with you sinking deeper into debt as you drive off the lot in buyer’s remorse. In the worst-case scenario, you drive off as the salesmen high-five each other while chuckling about your idiocy. The least you can do is prevent this from happening by peeking into the enemy’s playbook.
Out of Your Rut helps you out by presenting these 10 was you can avoid getting ripped off:
1. Don’t buy when upside down on your current car. The dealership may roll your debt into your new loan.
2. Secure financing in advance. That way the finance guy won’t be able to play Jedi number tricks on you by messing around with the loan term and interest rate.
3. Don’t rely on your old car as part of your down payment. Use cash on hand and sell to a third party to avoid getting screwed by a low-ball trade-in offer.
4 and 5. Scope out both competitors’ prices and Kelly Blue Book to make sure you’re paying a fair price.
6. Turn down add-ons. Don’t spring for floor mats, window tinting or any other extras, for which you’ll not only be overpaying for, but will accrue interest throughout the life of your loan.
7. Bring along a friend or family member who’s a better negotiator than you are to speak for you.
8. Be ready to walk away from the table at any moment.
9. Don’t lease a new car. If you can’t afford to buy the car you want, aim for a lower-cost model.
10. Leave emotions at home. This is strictly business, so don’t let sympathy, anger or new-car lust cloud your judgment.
What’s the worst way a car dealer ever ripped you off?
10 Ways to Buy a Car Without Getting Ripped Off [Out of Your Rut]
Previously: Beat the “Four Square” Dealership Ripoff
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Tip 8 is for sure a rule to live by. The last time I went to purchase a car, I was looking to buy a specific model used and found one in town nearby five months before my lease was up (don’t judge — I leased intentionally and with full knowledge of the financial implications). I told the salesguy that I didn’t need the car, but I *wanted* the car, provided we could come to an agreement. Because I am a woman, I specifically told him that (a) I’m a lawyer, (b) my lease wasn’t up for five months, trying to convey to him that I was willing to walk away.
He didn’t get it.
We come to terms, I walk into the dealership with a cashier’s check (tip 2) and he starts trying to pull a fast one on me (the remote keys he claimed he had he didn’t have, but they would only cost $200 a piece to replace and would be covered by my warranty, but no, he can’t put that in writing. Oh, and, maybe he’d miscalculated the amount so it would be a little higher but I could cover that with a personal check, and blah blah blah). So I bailed. I walked in with a cashier’s check, and I walked out with a cashier’s check.
And the next day, I got a call from the manager asking me why I didn’t take delivery. Boy, did he get an earful. And that car, which was already approaching the 90 day mark when I made my offer, sat on their lot for another eight months. (I purchased a brand new version of the same model from a dealership who treated me with respect. More money overall, but a great deal on a new car, and the dealership even paid off the remainder of my lease. Paid off, NOT rolled in.)
A car is a fungible commodity (for most of us). If you can’t get a good price on the one you want, you *must* be able to walk away.
It’s easy to find exactly how much a dealer pays (down to the dollar) for a car with about 30-60 minutes of research online. Consumer Reports shows you how much “fees” and other charges are inflated and how much you should actually pay. Arm yourself with this info, allow the dealer a small percentage of profit (see Consumer Reports again) and alway be ready to walk away. Saying “I’m sorry, I guess we can’t reach and agreement” to a salesman, and getting up to leave is like kryptonite to these guys. I purchased my first truck (used) that was priced on the lot at $9,999 for $7,000 drive out. I got up to leave three times before sealing the deal. My next truck was on the lot at $22,000 and I drove away for $17,000 after attempting to leave three times. In 2008 I purchased a $26,000 car for an even 20k drive out. Never compromise your price, always know how much profit they will make and you’ll never over pay again. You’ll probably never use the same salesman twice either, but who cares.
#11. Get EVERYTHING in writing.
Salespeople will make a LOT of promises when the game is going…free floormats? Free tint? 10 free oil changes if you buy today? Great…let me just get that in writing. Then take a copy of that contract with you when you go to get your oil changed and the service manager has no idea what you are talking about…or when you finally receive your car sans floormats…
This especially goes for the final price though. They may say “this price is good for today only.” BS. If they can sell it for that price today, they can sell it for that price next week too. Get the final price in writing.
If they refuse to give you a price in writing, they were never planning to let you walk out of there at that price anyhow.
This goes especially well with the earlier comments that stated that after the final price is agreed upon but before anything is signed, use this time to them know you will be paying in cash or offering up your current car as a trade in…this just prevents them from playing with the numbers. If they refuse, you have nothing to lose by walking away because nothing has been signed…again, if they let you walk away, they weren’t going to give you that price.