The numbers will dictate the pay, commissions and bonuses of the sales manager, sales people and the finance managers. A good sales staff is motivated to sell a car at all times and they will usually give you reason why you should buy now, but there are some times that are better than others of when to buy a car.

Why When to Buy a Car Matters

Most car dealers structure their pay plans on levels or percentages for every member of the sales team and there are times that one more car can make a difference on the pay checks of the sales managers and salesmen. This critical time of when to buy a car is usually at the end of the month. I am not talking about the last week of the month, I am talking about the last day or two of the month.

On the last couple days of the month the car salesman and sales managers know where they stand so far in the month and have a very good idea how many more cars they need to reach the next bonus level or pay level. For that very reason the car sales people and the sales managers are typically very motivated to sell some extra cars. The extra cars that they need to sell do not always need to make a handsome profit, but rather the unit count is often more important. Therefore they very often pull out all the stops to sell some extra cars and that is why it is the best time to buy a car.

I have sold and seen people buy cars with zero profit in them in order to get the car salesman and or sales manager to the next bonus level. This next level could mean an extra thousand dollars to the car sales person, so you can better understand their motivation. So you can see that when to buy a car can make a difference in the price you pay.

When to Buy a Car Exceptions

Because car salesmen and sales managers have learned to work the system the car makers will sometimes run contests and promotions that ran past the end of the month and end sometime during the month. These contests or sales events may offer the dealership owner or general manager more incentive than the sales people. However during some of these promotions the specific dealer may ran an in house program for their sales people to motivate them to sell more cars during a period that is traditionally slower than the end of the month. Those in-house programs don’t offer nearly the amount of incentives that the end of the month offers.  So overall when you ask when to buy a car the short answer is to buy a new car on the last couple days of the month.

Whether you need to buy a car now or you can wait until the end of the month the most important thing you can do is your homework. When to buy a car can make a difference, but if you follow the steps in how to buy a new car you can get a great deal at anytime.

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The car buying process of any successful car dealership is one that is planned, scripted, measured and monitored. The car salesman is trained to walk their car buyer through a series of pre-determined car selling steps and processes while using carefully scripted words, phrases and questions. Every step builds on the next step with the intention of getting you to buy a car. The car salesman is well trained and armed with psychological car dealer tricks that are used make you comfortable and break down your defenses will allow them to sway you from your intended logic choices and decisions.

The Car Buying Process

The process of buying a car at your local dealership is broken into many steps that vary from dealer to dealer. The steps have been called many different things such as 10 steps to a car sale or the road to the sale. Each step of the car buying process is design to accomplish a specific objective and bring you, the car buyer closer to buying a car. To illustrate the steps of the buying a car process is as follows.

Steps of The Car Buying Process

1. Meet and Greet: This is the first step of the car buying process and the step where you meet you car salesman and they meet you. You exchange names and your car salesman’s chance to start selling himself or herself to you. They try to get to know a little about you so they can size you up and figure what kind of customer you are.

2. Determine Needs: This part of the process of buying a car is for the car salesman to determine what kind of car you may want and what you need in a vehicle. The salesman will ask you questions in an effort to determine what model car to show you along with any special requirements you may have. They will try to determine your price range, desired monthly payment and you ability to finance a car.

3. Walk Around: This part of the car buying process is to show you some cars and their features and benefits. It is also used to check you level of emotional or logical involvement in your decision making. The plan is to get you to select a car you want to buy.

4. Test Drive: This is a major part of the car buying process because some people fall in love with the idea of a new car after they drive the car and get a whiff of that new car smell. The salesman wants you to fall in love with the new car because it makes their job easier when it comes time to negotiate the car deal. The process of buying a new car at many car dealers requires the car salesman to have you drive the car so you will not want to leave the car dealer without buying a new car. During the test drive the car salesman will demonstrate the features that you seem to be interested in while pumping you for information that they will use to sell you a car.

5. After Test Drive: After you have driven the new car the salesman will have a series of questions they will ask you to make sure you like the car, are receptive to buying the car and your ability to buy the car. If this part of the car buying process has turned out favorably your car salesman will move forward to the next step in the process of buying a car.

6. Showroom: The car salesman will bring you into the showroom and you will sit down at their desk. They will be some more talk and questions to confirm that you are ready to buy a car before your car salesman moves to the next step of the car buying process.

7. Negotiation: This is the part of the car buying process that is loaded with car dealer scams and car salesman tricks. The negotiating part of the process of buying a car is something that the car dealer spends the most amounts of time and resources when training their car salesmen. The negation step involves psychological tactics and techniques that are specifically designed to get you to buy a car.

8. Making a Deal: This is when you, the car buyer and the car salesman comes to an agreement on price, terms, financing and payments. This usually called “Closing the Deal” by car salesmen. The steps 7 & 8 are sometimes considered one step of the car buying process, but some dealerships count it as two steps when it comes to intense training they use to condition their car sales people.

9. Business Office or Finance Office: The car buying process and steps that I have covered so far all comes together in the Business Office. This is where all the paperwork is signed and everything is finalized. The Finance Manager that is processing your car buying paperwork will tell you that you can relax now, but in reality the negotiation is just getting started. The Finance manager will try to sell you all sorts of things like an extended warranty, car window etching, car loan life insurance, service contracts, tire warranties, car dealer fees and any number of other things. The will roll you extra purchases into the dealership financing and sell you on the payment rather than the price. This step in the process of buying a car is where many people become the victim of car dealer scams.

10. Car Delivered: While you are in the finance office your new car is being prepped for a Spot Delivery so you can drive it home as soon as you come out of the Finance Office and complete the final step of the car buying process. One you take delivery you have completed the process of buying a car. Congratulations you bought a car, but there are no returns after you take delivery. It’s your car no matter what happens.

The car salesman has scripts and word tracks that they have memorized to move you through every step of the car buying process. Every word and action is deliberate and designed to make buying new cars seem like an effortless and natural process. Whether it be the process of buying a used car or a new car is practically the same, except that you car salesman will use slightly different tactics, terminology and techniques when you are buying a used car. Buyer Beware

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In my years of selling cars I have either seen or used these car salesman tricks to make a deal or at least help it along. These car dealer tricks are very common and actually encouraged in more dealerships than you may realize. I am not saying that every customer will experience every car dealer trick when buying new cars or used cars or that you will be tricked by all car salesmen, but it is very common throughout the car business to be subjected to one or several of these dirty car sales tricks.

Car Dealer Tricks to Help Car Salesmen Sell Cars

1. Holding the Trade Keys: I am sure many of you have heard of this car dealer trick. The idea is to get the keys to your trade-in so you can’t leave without getting the keys back from the salesman or sales manager. In effect holding you hostage so they can try to sell you a car without you getting up and leaving. This a very common car sales trick and one almost everyone has experienced. If you demand your keys back you shouldn’t have any problem getting them back, most dealers understand that an upset customer is not very likely to buy a car.

Car Dealers and Car Salesmen Tricks

2. Pulling the Keys: Pulling the keys is a trick car dealers use to help move negotiations forward. Another salesman will come to where the salesman and customer are negotiating and ask for the keys to the car they are negotiating to buy. The customer will either say they are buying the car or they will be quite and become more agreeable during negotiations. The car salesman that came to get the keys does not have a customer, they just say they do so the buyer will get off the wall and make a deal. The salesman will take the car and park it behind the building or somewhere and stay out of sight until the deal is made. Pretty sneaky car salesman trick, but it can work if the buyer is serious about that specific car.

3. Take it Away Closing Technique: This car salesman trick is used when the car buyer is stuck at a certain monthly payment and the car salesman can not get the customer to come up to where they can make a deal. The car salesman will leave the desk and get a lesser value car or a used car that the customer doesn’t really want and then tell the car buyer that they can buy that car for the payment they want. Then they tell the car buyer that if they raise their car payment limit xx number of dollars a month they can get the car they really want. Then they ask them “would you rather save a few dollars a month and get the car you don’t want or spend a few more dollars each month and get the car your really want. This car dealer trick doesn’t always work, but it does more times than it doesn’t.

4. Pre-Installed Accessories: It is a common car dealer trick to install accessories on a new car that is a popular model. Because it is a popular model many customers will want that model and color, but when they want to buy that car the buyer must also pay for the accessories that are already added and installed. This dirty car dealer trick can add anywhere from a few hundred dollars up to a thousand or more to purchase price of the car. These accessories are usually marked up very high and can add quite a nice additional profit for the car dealer and a nice commission for the car salesman.

5. Make Them Wait: This car salesman trick is not something to be proud of, but there are times when a salesman gets a customer that is negotiating extremely hard to get a great deal and the salesman will tell him he will be right back. The customer is assuming that he is going to talk to the sales manager to try and get the OK to make the sale when in fact the salesman is just taking a break. They might go to the back or the other side of the building and have a cup of coffee and a smoke. I have seen car salesmen leave customers sit there for half an hour while they take a break. This car dealer trick may be used because they either don’t believe that they are not going to make the sale or if they do they will make very little money. So they make them wait and work at their pace not the customers.

6. Advertised Special Car: This car dealership trick has been around for many years and that is to advertise a car at a special price that is practically unbelievable. The car will be a stripped down model with a standard transmission, maybe no radio or air conditioning and crank windows. The car that nobody wants after they see it, but the idea is to advertise the car at such a low price that customers will come into the dealership. Car dealers use this trick because a certain percentage of the customers that came to look at the low priced car will buy the higher priced car. The odds are in the favor of the dealer. This is one trick that car dealers will use as long as it continues to bring customers to the dealer and sell cars.

7. 0% Financing Tease: Car dealers love to use this to trick on car buyers and customers and as a way to bring more customers into their dealership. They will advertise 0% car dealer financing and hide the restrictions in fine print so small that it is hard to read.

This car dealer trick shows that the car dealer has 0% financing on new or used cars in big print and then in a very small paragraph at the bottom of the page that you can hardly read it says; to qualified buyers, with approved credit, for 12 or 24 months, with $10,000.00 down, maximum amount financed $9000.00 or less, on selected vehicles only or something very similar or even more restrictive. Then the customers come in for 0% dealer financing only to find out that the offer is not good for the car they wanted to buy. The restrictions are so strict that so few people can or want to qualify. Then they work their salesman skills and sell some cars because people have been talked into buying or their don’t realize that they are paying a regular interest rate based on their credit score.

8. Incomplete Price Quote: Car buyers that are doing their homework call around to several dealers for price quotes on a specific car. The sales person that they talk to gives them a verbal quote that leaves out freight or destination. Then when the car buyer gets to the car dealership because it was the best price the car salesman will add on the destination or freight charge and try to charge you a dealer prep fee. This can be anywhere from $500.00 up to almost a $1000.00.

Plus they ask for a copy of the quote and the car buyer says they got a verbal quote. The dealership says that they can’t sell the car for that price without a written quote. This type of car dealer trick is very rampant on some brands more than others in a competitive metropolitan areas. Either way the car dealer is is tacking on more money to the purchase price.  This car salesman trick and dealer trick gets them in the door and allows the dealer to sell a certain percentage of these buyers. Some will walk out, but some are so tired of shopping and dealing with car salesmen that they end up buying a car and paying more than they should so car dealers keep using this trick to sell cars.

9. That Car is in Stock: This car dealer trick also involves the customer calling several dealers trying to find a car that has the options and color that they are looking to purchase. They talk to someone that tells them that they do have the car in stock. So the car buyer goes to the dealership and asks for the person they talked to on the phone, but is told that they went to lunch or left for the day. (the trick is that they gave a name that the car dealer staff knows is fictitious because they lied about the car being in stock) The car salesman that greeted them takes over and tells them that that car was just sold but they have several other that are very close. Like the price quote given above a certain percentage of these car buyers will buy a car rather than run around and being lied to by and tricked by car dealers.

10. Low Monthly Payment: This is also a trick that car dealers use to get car buyers into their showroom. They will advertise a very low monthly payment on a popular car that catches the eye of many car buyers. The car buyer heads down to the showroom to get a car with the low monthly payment only to find out that there is huge down payment required, plus tax, plus title, plus license, plus car dealer fess, excellent credit is required and the term is for 84 months ( 7 years). Again the car buyer is upset but they wanted a new car and a slick car salesman tricks them into buying a car at a monthly payment that is much higher.

This was only ten of the dirty car dealer tricks and car salesman tricks that are used everyday to sell cars. Yes, there are more sneaky tricks that car dealers and car sales people use everyday. When you know of the tricks that car dealers use to a sell you a car you can protect yourself from the underhanded dirty tricks and save your hard earned money.

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What Is The Car Salesman Doing in the Sales Managers Office

So there you are sitting at the car salesman’s desk wondering what is he doing. He said he was going to go talk to the sales manager about your offer. So why is he taking so long. What is he doing or talking about in there? You are getting tired of waiting and you are starting to think they don’t want to take your offer.

What The Car Salesman is Really Doing

Alright I am going to tell you exactly what your car salesman is doing in the sales manager’s office. After spending my share of time in the sales office and letting car buyers sit there wondering what is going on I will tell you.

Where the Car Salesman Goes!

The job of the car salesman is to report to the sales manager the details of what they have, what car they are looking to buy, car details if they have a trade-in, if you are financing and any other details that pertains to selling YOU a car along with the car salesman’s opinion of you the customer. They are also expected to get your trade-in keys so you do not leave. (I won’t get into the numbers here, I just want to explain the process)

The sales manager will look up your trade-in value in a book and give your salesman a trade-in number (usually much lower than actual value) and pencil back a counteroffer (pencil = write the counteroffer on the four square worksheet) and send the salesman back out to you to present the counteroffer. Now all this happens when your car salesman is in the sales office, but if there is a salesman or two in front of them they will have to wait their turn.

The Old Back and Forth with the Car Salesman

Now your car salesman finally comes back to you and presents you with the sales manager’s counteroffer. So begins the back and forth that you the car buyer hates and become the focus of car buying horror stories. Your salesman will now go back and forth between you and the sales manager until one of you say OK. The sales manager is not the one running back and forth so they will play this game until they think you are going to leave without buying a car. Then the sales manager will accept your offer or say no thanks and let you leave.

I hope gives you a better idea of what goes on in the sales office when your car salesman leaves you sitting at their desk. Yes, there may a little talk about last nights football or basketball game or maybe some comments about an attractive woman in the showroom, but overall they just want to sell you a car and make as much money as possible on YOU!

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The Car Salesman’s Car Buying Facts

Once you walk on to the lot or into the new car showroom and I greet you there is very good chance I will sell you a car TODAY! You can tell me that you are just looking and not buying today, but I don’t pay much attention because most car buying customers tell me that and they end up leaving with a new car. I have sold more cars than I can count to customers that were just looking, that’s just one of my facts of car buying.

My Firsthand Car Buying Facts

One of the obvious facts of car buying is that a person rarely goes to a car dealership to waste time, they want a new car. Most people don’t want to go to a car dealership when they need to buy a car so why would someone come in to waste time or just look. Maybe the last thing they need is a new car or they can’t afford to buy a new car, but they would like a new car. This car buying fact makes my job much easier because all I have to do now is help them to overcome their objections. That’s easier than you might think when I know that you want a new car.

The Senses and Car Buying Facts

This second fact of car buying is that “wanting a new car” is an emotion. So the best course of action at this point is to engage your other senses and emotions. It is time to select the car you like and take you for a test drive. I will show you around the car both inside and out and point out some of the features that are important to you that I discovered while we were engaged in small talk and answered your car buying questions.

Car Buying Facts and Car Salesmen

I hand you the keys and you slide in to the drivers seat and smell that new car smell. I love that new car smell, don’t you? We go for a ride and I ask the obvious questions. It rides nice, it handles nice, it smells good, it feels good, the stereo sounds good and you answer yes, yes, yes, yes and yes. We get back to the car dealership and get out of the car and we start walking towards the showroom and ask you to stop and turn around so you can see the car and then ask you “it sure looks good doesn’t it” and again you answer yes. Great, I have engaged your senses and emotions and they are all saying I would like to have that car, now that is a car buying fact.

Objections, Logic and Car Buying Facts

Another fact about car buying is that the payment is always more than you expected. Have you ever bought a car and the monthly payment was less than you expected? No, it is always more than you thought. It’s just a car buying fact that your payment is going to be higher. That’s just some of the logic and car dealer tricks that I will use to overcome your objections. We will go over the numbers and play the game.

I will get you to believe that I am working like a dog to get you a great deal. When we hit a rough spot I will remind about how nice the new car looks, drives or smells. Also I will carefully remind you about your old car so you will think about driving home your old car versus the new car. Which one would you rather drive home from the car dealership? The answer to that question is easy and another car buying fact.

We wrap up the deal and you drive home your new car. Before you leave we shake hands, I thank you for your business and you tell me that you didn’t plan on buying a new car today. There you go, another happy car buying customer and unaware of any car dealer scams, the dealer prep fee you paid or any car dealer fees.

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Some Common Car Buying Myths Dispelled

One Price Car Dealer Car Buying Myths

I have had people tell me that they don’t like the car dealer experience so they prefer to go to one of those “One Price” car dealers also known as “Haggle Free” or even CarMax to buy a car. They feel that these types of car dealers charge the lowest price and they don’t have to negotiate or haggle with a car salesman. They believe that they are getting a great price and don’t have to worry about any car dealer scams. Well, think again. The “One Price” car dealer has built their profit into your purchase. They show a price reduction from M.S.R.P. which is a price above invoice that allows then to make a profit. Granted you are not paying sticker price, but the price of the car is only one aspect of potential profit for the car dealer. They can still make a very nice profit on car dealer financing, warranties, interest rates, and accessories.

When there is less profit being made on the car purchase (front end of deal) there is naturally more emphasis on the other opportunities for profit (the back end of deal). A car buyer that follows the Steps to Buying a Car can usually buy a car much cheaper than they can at a “One Price, Haggle Free” car dealership. The marketing efforts of these “One Price” car dealers have been very successful in making the customer believe that they are selling the car for a great price and they don’t play the standard car buying games. When the car buyer believes that the car buying process at these are fair and without car scams they are sure to overpay for the car, financing, car dealer fees, dealer prep fee and all the car dealer add-ons.

I Can Return The Car to the Dealer Car Buying Myth

Many believe that they have 3 days to return a car to the dealer if the change their mind or if there is a problem. This is a very common car buying myth that people don’t find out about until they try to return a car they just bought from the car dealer. No, you can not return a car to the dealer, that is a car buyer myth that I have written a article about that you can find here…….Returning A Car To The Dealer.

Car Dealers Price the New Car Window Sticker Car Buying Myth

The window sticker or it’s formal name the Monroney Label is required by law and is printed by the manufacturer. The car dealer has no input whatsoever on the price of the car that is printed on the window sticker. The price of the car is determined by the manufacturer and is the same price for every car dealer in specific region. This is one of the often asked car buying questions and myths. You can take a look at this post….. What is a Monroney Label.

I Saved A Bundle Buying a Demonstrator Car – Car Buying Myths

People that buy a car dealer demo car do so because they believe they are saving a lot of money. You can save a tidy sum of money when you buy a demo car, but most car buyers don’t. Most demo buying car buyers are basing their savings on the M.S.R.P. of the car. When in fact you can often times buy a brand new car for the same amount many buyers pay for a demo car. …………Should I Buy a Demo Car

The Car Salesman Got Me A Great Deal Car Buying Myth

Sorry about this one, but the car salesman sold a car and he or she did whatever they had to do to sell you a car. Your perception is what is important to the your car salesman and that is second to selling you a car. I think some car salesmen could have a career on Broadway if you they pursued an acting career. The best car salesmen and car saleswoman are experienced in making your feel like you got a great deal and that will in turn have you referring customers to them. The car buyers perception is everything. The car buying myth that the car salesman got you a great deal is your perception of the experience, because a good salesman is trained to sell you a car and make as much profit as possible because that is how they get paid. Their commission is their first priority.

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Car Buying Math of Car Dealers

What a Deal the Car Buying Math

When you are buying a car, the favorite car dealer scam is the dealers own style of car buying math.  Most car dealers use the “Four Square” to negotiate the price and payments on your new car. The car buying math that dealers use on the Four Square is designed to present you with a monthly payment that will put you on the ceiling (the lingo of the car salesman). In other words if your car payments should be about $400 a month the car salesman will present you with a payment of $585 a month. The car buyers response will one of several different reactions;

A. I can’t afford that much a month so they decide to look for a cheaper car.
Rather than look for a cheaper car the car salesman will ask them how much they can afford. Then they will start coming down on the payment until they can agree somewhere higher than $400 a month (the actual payment) or if they have go below $400 a month they will look at cheaper cars.

B. Are you crazy, where did you get that number from?
This reaction is a car buyer that has done their car buying homework. They have done the car buying math and have a pretty good idea what their payment should be. Now that the car salesman knows that they have a customer that has done the research and knows what they are talking about the salesman will start working the real numbers. If they can get this customer to buy a car they will probably get a fair deal.

C. OK, I was hoping for a lower payment, but I can manage that.
The car salesman hit a home run or “Took Your Head Off” (more lingo). The actual car buying math $185 more than the actual payment times 60 months equals $11,100. Now that is what you call a car dealer financing scam. There may only be a small percentage of car buyers that say “OK” when the car salesman presents them with the payment, but you don’t need too many of these customers a month to make a killing. The customer that does not do their homework and is foolish enough to believe what the car salesman tells them assumes that the car buying math is correct. (they get screwed)

Math and Car Buying Math

The above scenarios happen every day at the car dealer. Most times the reactions are A and B, but every now and then option C comes in to buy a car. All the car salesmen love getting an option C for a customer. The customer that doesn’t choose option C are then subjected to the other car dealer scams and car buying math for additional ways to make extra profit at the car dealership.

The car dealers use their own brand of math for car buyers, but when it comes down to filling out the  paperwork that you have to sign, all the figures have to work out to like the regular laws of math. The car buying math of car salesman tricks doesn’t fly on the paperwork and the dealer financing agreement.

To protect yourself from the car dealer tricks of car buying math you need to do your homework. Go to the Steps to Buying a Car and be prepared before you go to the car dealer. You can figure out your monthly payment by using the Auto Loan Calculators on our site. Being prepared is the way to avoid car dealer scams.

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