You’re not “just looking”…the car salesman knows that…and even if you ARE “just looking”…he doesn’t believe you.

I know. I used to sell cars, and they train you to think that way.

So, if you want an advantage when you head to the dealership, then you need to sit down, grab a cup of joe, and start taking notes…cause I’m about to take you to car buying school…

If you want the best deal on buying a car, you have to play the car buying game. Sure, you can go to a Saturn dealership, and just pay the sticker price…and if that’s what you want to do, then get on out of here and do it…but if you want to shave some bucks off of the purchase price of that car, I can give you a few tips on just what that salesman is doing, and how you can take advantage of it.

Before we even get started, let me tell you…don’t ever walk on a car lot “just looking”. You need to know what kind of car you want when you get there. If you have a few in mind, do the research on all of them. Have it handy. Make sure that you know all the details about what you want and how you want it before you get there. Then, when the salesperson asks…be sure and tell them that you’re “just looking”…

1. Know your Credit Score – Before you walk on the lot, you need to know your credit score. Head over to Equifax and get your score before you even walk out the door. When you get there, don’t tell them your score…don’t even let them know what your score is…but know this (in Texas, at least) if you have anything 600 and up, car dealers get excited…because they can…and will…get you financed for almost anything you want. This is something you need to be aware of when you get into the finance room and they start telling you how hard it was to get you financed. If you’re in the 600s and up, it’s probably a load of crap, and you need to make sure that you stay in control of the deal. Walk away if you have to. They will call you back in…or they will call you later with a better deal. They want that sale more than anything in the world…and you have to remember, that gives you all the power.
2. Know what the car actually costs – Again, before you leave the house, head over to Google, and search for “Invoice Price of CAR YOU WANT” (with “CAR YOU WANT” being replaced with the make and model of the actual car that you want). After you see that price…here’s a really neat little bit of info not everyone tells you…that invoice price is a LIE. The dealer actually paid less than that for the car. Usually about $750 dollars less. So even if they sell you a car at invoice price…they’re still making money!
3. Let the Game Begin! – After you know what the invoice price for the car is, and you know what your credit scrore is, it’s time to head to the lot. Once you get there, be sure that you’re “just looking”, and be prepared to talk about a few different vehicles. Most of the time, sales people will try to get you to fill out a credit application very soon after they meet you. They might let you test drive the vehicle first, but most of the time, they want to get right to that application. It’s ok to be resistant to this, but don’t be TOO resistant. Fill the application out, and let them run it so that they know they have a winner. After they see that you can actually buy, they’ll be real friendly. Pay attention to certain things…like how they move their hands and the way that they lead you around. There are several subtle signals that they teach you in car sellin’ school. Like mimicking your customer (i.e. doing the exact same things with your hands that they are doing with their hands), and leading the customer (like making you walk a long way to get to the vehicle you want, so they can show you other vehicles they might want to sell you if you can’t afford the one you want), and tapping chairs (to get you to sit where they want). Be aware of these things, but try not to be too annoyed. Letting them do this stuff now, will help them think that they’ve got “a live one” and that they’re going to get a good commission off of you. They’ll be more inclined to help you.
4. The Deal – After you’ve test driven the car (and you should ALWAYS test drive the car. Sales people don’t think you’re serious unless you do), it’s time to sit down and do the “four square” – every dealership likes to think they invented this method of doing things, but in reality, it’s been around for a long, long time.The four square is a piece of paper that they bring out with four squares on it (hence the name). Sometimes there is more info above it. What they’re usually going to do is bring you out a deal from the manager that requires a large down payment, and is sticker price. This part of the deal is called “The Roof”. Why? Because this is as much as they can possibly get for the vehicle…so it is as high as the price will go. Do not get annoyed by this…it’s part of the game. This is the most nervous part for a new sales person, because they probably know what you want to pay already…and they don’t want you to walk away. Your role is to set “The Floor” for the deal. The lowest amount that they can make. If you’ve done your homework you’ll already know what the invoice price is…so tell them that you’ll be willing to pay $250 dollars LESS than that…and no money down (everyone wants no money down). The sales person will probably draw a line through the mangers numbers and write yours down instead. Then they’ll probably ask something like, “So what you’re telling me Mr/Mrs Smith is that if I can get the vehicle for this price, you’ll buy it today? “Give them a firm and confident, “Yes”. They need that…it gets them pumped. Now they will return (after a short wait) with another offer. It will NOT be the one that you suggested. Keep going back and forth with them until you are happy with the price….and remember…they aren’t a charity…they need to make money too. The definition of a “good deal” is one that both parties are happy with…once you’ve gotten the price that you want…stop. Make the deal. Everyone wins.Now, if you don’t get the price you want…don’t give in. As long as you are being realistic…they can do the price…they just might not want to. There will be several tactics that they try to use to convince you that you could lose this deal, and not get that vehicle if you don’t take their deal.

   Be ready to walk away. If you leave, they will call you back. They will make that deal…especially if you go to a smaller lot, where every sale is important.

If you’re willing to play the game, you can get a good deal on any vehicle you want. It’s important to know the rules of the game, though…and a lot of time car dealers don’t tell you what they are. What I have briefly touched upon above is a good start to get you on your way.

Do you research and be prepared to walk away. If you do those to things…you’ll probably drive away instead.