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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Most car dealers today have a Internet Car Sales Department of some kind in order to accommodate the car buyer that uses the Internet to do research before they visit the car dealership. It has been reported that 80% percent or more of today’s car buyers use the Internet to some degree  to research buying new cars.

Car Internet Sales Structures

There is no hard and fast rule for structuring a car internet sales staff or department. Different dealers setup the way they handle internet car sales customers differently than the next dealer. Most people believe that the Internet sales department at the car dealer processes emails and requests for new car pricing, car availability inquiries and sets up purchases for car buyers before they get to the dealership.

Another way that some car dealers set up their Car Internet Sales Departments is to forward the emails and leads (customer inquires from the Internet) to a select group of floor salesmen or saleswomen. Theses sales people will then work that lead or email to get the customer into the car dealership. They will communicate with the customer via email, telephone, texting or whatever means available to turn them into a customer and eventually a car buyer. Some of these car dealers will email quotes and and work out purchase details and others will not. Their focus is simply to get the customer to come to their dealership.

A third way that some car dealers choose to set up a car Internet  sales system or department is to combine their Internet Car Sales emails and leads with their BDC (Business Development Center). This allows that team or staff to handle all of the emails, leads and inbound phone calls that relate to sales of new and used cars. This hybrid BDC/Internet Car Sales Department handles everything that has to do with selling cars before the customer actually comes to the car dealer. They set appointments, coax customers to come to the dealer and work out details. When the customer arrives at the car dealership the customer is then taken care of by a floor car salesman. If there are details or quotes the car salesman is informed and honors those quotes. The only drawback to this Car Internet Sales system is when a customer feels they have formed a bond with the Internet car sales staff member and they end up working with a different salesman they can sometimes feel they have been tricked or lied to. A good car salesman can overcome this situation if handled correctly and professionally.

Internet Car Sales and the Missing Profit Potential

Did you ever wonder where the profit comes from when you get a car through the Internet car sales department? Yes, I said profit. Did you really think that the car dealer was going to let you leave the dealership with the tiny little profit they make from Internet car sales. Of course not!

The idea of Internet Car Sales is to bring in car buyers from beyond their normal trade area. This gives them a chance to grow market share and make additional profit. Since the Internet car buyer is coming to their dealership because of the great price they were quoted they focus on other areas to make a profit.

Those areas are dealership financing, extended warranties, car window etching and other car dealer scams. They may sell a car and make less profit from Internet sales, but they very often make up the difference in other areas. Your car buying homework and research is still your best defense from car scams when you buy a car.

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What is an Extended Car Warranty?

An extended automobile warranty is basically an insurance policy. A policy that starts when the car manufacturers warranty expires, in other words it can extend the warranty period for your new car to a pre-determined amount of time or miles. The warranty term can be extended out to 100,000 miles and a time limit of 7 years from the original purchase date. These are simply examples of different time frames and mileage amounts. You can buy an extended car warranty that has many different variables some of which are mileage limits, number of years and deductibles to be paid by the car owner.

How to Decide if Buying Extended Car Warranty is Right for You

To help you make a decision about buying extended car warranty for an extended period of time for your new car there are some questions that you should consider.

1. How many miles do you drive a year on average?
2. How often do you buy a new car?
3. Are you planning to keep your car long after the manufacturer’s warranty period?
4. How much does an extended car warranty cost?
5. Can your budget afford unexpected car repairs?
6. What kind of warranty coverage is available and what repairs does it include?

Buying a New Car Extended Warranty Considerations:

If you are buying a new car the first thing to consider is how long the manufacturer’s car warranty lasts. A very common warranty term is 3 years or 36,000 miles. So if you drive an average of 10,000 miles a year and like to get a new car every 3 years then an extended car warranty does not make much sense. However if you drive and average of 18,000 miles a year and would like to keep your new car for at least 5 years (especially if you have financed for 60 months until you pay off your car) you will have approximately 90,000 miles on your car after 5 years.

Should You Buy Extended Car Warranty?

Many car makers’ warranties include a 5 year or 60,000 mile engine and drive train warranty, but it does not include anything other than the drive train. So it the above scenario where you drive 18,000 miles a year and want to keep your car for 5 years you will have reached the mileage limit on your original warranty within 2 years. To take this scenario farther imagine you have 40,000 miles on your car and you have a problem that requires a $1200 repair that is not covered by your drive train warranty. You will have to pay for your repair out of pocket and still make your monthly car payment. If you have an extended car warranty you will have to pay your deductible (if you have one) and your monthly car payment. If paying your payment along with an unexpected $1200 car repair would be disastrous to your financial well being then to buy extended car warranty might be a good choice for you.

A $1200 repair on a car that only has 40,000 miles might sound out of the ordinary, but it can happen. A repair on a newer car that exceeds a thousand dollars is not extreme today when you consider all the electronics and technology that are part of today’s automobiles. A new car extended warranty that covers your car for 100,000 miles or 7 years may only cost you $1200 depending on the make and model of car if you do some warranty comparison shopping.

Buying a Used Car Extended Warranty Considerations:

When you buy a used car there are many things to consider when it comes to buying an extended car warranty. Used car warranties can be purchased that cover from 12,000 miles or 12 months or as they can long as 7 years or 100,000 miles and some can even be longer or more miles. One variable is the age of the used car that you are buying, if the car is too old or it has too many miles there may not be an option to purchase a warranty. If you used car purchase is only a year or two old your choices and considerations for extended warranties are very similar to those of a new car. If the used car you plan on buying has a warranty that is only a year away from expiring it is probably a good idea to evaluate your options and do some research and comparison shopping for extended car warranties.

Why Do Car Extended Warranties Have a Reputation of Being a Scam

The extended car warranties that car dealers sell have been seen as car dealer scams for a few reasons, all of which are because of the car dealerships that sell them. One car dealer scam that involves the purchase of extended warranties is the finance manager including an extended car warranty in the paperwork and telling the car buyer that it is a requirement of the lender. This is simply not true; there are not any lenders that require an extended warranty. This is a car dealer tactic to get you to buy the warranty so they can make additional money and commission on your car purchase. If you have a car dealer tell you that the lender requires an extended warranty you are dealing with a car dealer that is trying to scam you. Your best choice at this point is to get up and go to another dealer.

Another reason that extended car warranties are the subject of car scams is because of how much the car dealer charges you for a warranty. I have seen car dealers charge anywhere from a $100 over cost (which would be a great deal) up to 3 times the dealer cost. The car buyer that has not done their research has no idea how much an extended warranties cost. The best thing you could do is get some FREE quotes before you go to the car dealer by Clicking HERE! and get a quote from Smart Warranty.

What is the Price to Buy Extended Car Warranty?

The prices for extended warranties on cars can vary greatly based on the type, brand, make, model, miles and age of the vehicle. They are also based on the reliability of the particular car and the average price of repairs. I have seen the dealer cost of warranties be as little as $500 and as high as $10,000. See what I mean about how much the price can vary between cars (and those are dealer costs). The retail price can be any number that the car dealers finance manager decides.

Protect Yourself When Buying Extended Car Warranties

The best way to protect yourself from being the victim of a car dealer scams when you buy an extended warranty for cars is to take some extra time when doing your car buying homework. You would buy anything without comparing prices at a couple different vendors. So why would you buy extended car warranty for your car without getting some competitive prices. You can CLICK HERE and get FREE QUOTES on extended car warranties before you go to the car dealer. If you bought a car in the past and would like to buy a warranty you can get a competitive price for one HERE…at Smart Warranty. There is no obligation and it is FREE…. Click Here! NOW! And get a quote for free.

You can purchase an extended car warranty directly and avoid the car dealer scams or you can use your FREE Quotes to keep the car dealer on the up and up or to negotiate a better price. You have to decide whether to buy extended car warranty is right for you. Get the FREE Quotes and make a good decision for 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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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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The Car Scams and Recalls Have Started

I have had many questions from Toyota owners that are concerned about the value of their Toyota dropping drastically. It seems that many car makers and car dealers are offering extra incentives to Toyota owners to trade in their car. In most cases the car dealers are appraising the Toyotas lower than they are worth and then offering an extra $1000 incentive. Now why would a competing car dealer or car maker be willing to trade-in a used Toyota and hand over an extra $1000 if the car was not a good investment. Simple, they are undervaluing the car to the car buyer and they know that they have a very good product that they can sell and make a nice profit after the Toyota Recall has been repair at no expense to them. What makes things worse is that the media has made this car dealer scam and recall a very believable car scam.

Toyota Recall and Car Scam

Toyota has made one of the safest cars on the market for years and rarely has recalls as compared to many of the other car makers. Maybe that is why the media has made this Toyota recall such a huge media event. The fact remains that once your Toyota Recall for a sticking gas pedal has been repaired according to the approved NHTSA fix your Toyota will be the Toyota it was before the recall. The media also failed to mention that their were Toyotas that were manufactured with a gas pedal from a different supplier that were not sticking and not recalled that could continue to be sold. This car scam and recall has been practically encouraged by the media.

Protect Yourself From the Car Scam and Recall

The best way to protect yourself from this car dealership scam is to wait and get your car fixed before trading it in or trade it in at a  reputable Toyota Dealer. There is no reason for your trade in value to plummet after it has been repaired. I must admit that I am a fan of Toyota. I think they are one of the best cars on the market today. Get your Toyota recall repaired and this car scam and recall will pass, it is still a good car for the money.

There have been numerous car recalls in the past that involved many different brands of cars like Ford, Chevrolet and Chrysler and I am sure there will be more in the future. When the car maker issues a recall it means that the car will be repaired at no expense to the  owner and the repair must be approved by the NHTSA (National Highway Traffic Safety Administration) to be safe. Once your car is repaired there is no reason for your tade value to drop.

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Be Careful There Is No Returning a New Car to The Dealer

When you purchase a new or used car from a car dealer you sign a contract that legally binds you to buying the car and the car dealer to selling you the car. It is a legal contract and both sides or signers are legally obligated to perform to the terms on the contract.

Most car buyers never realize this fact until they have a problem and want to return a car to the dealer. To some this is considered to be a car dealer scam, but it is in fact a legal obligation. This is a state law and all of the states are on board except California has a few rare conditions in which you can return a car to the car dealer. This law is one of the reasons that I have written so much information about car buying scams and specifically the spot delivery scam.

Exceptions to Returning a New Car to The Dealer

In recent months or years you may have heard of some car manufacturers or dealerships offering to take back your car for any reason within a certain amount of time. Be careful of this type of statement because are certain conditions that must be met before they will allow returning a car to the car dealer. One condition is that they will take the car back, but you must buy a similar priced car or a higher priced car before they will allow you to return the car. Others state that they will return the car, but you must pay for the use and depreciation. (That can be expensive, so be careful) Another condition that allows return a car is a Lemon Law. This is a law that covers vehicles with repeated problems and issues which varies from state to state.

Know About Returning a New Car to The Dealer

When you buy a new or used car it is important for you to be sure of the obligations you are signing. I write about doing your research to avoid car dealer scams and car dealership financing scams because there are many things to be consider when you buy a car. The steps to buying a car can take you step by step through the process of buying a car along with a warning about returning a car to the dealer. So be careful when you decide to buy a new or used car, once you take delivery the car is yours along with the financial obligations. There are no returns to the dealer so do your research and know exactly what you are doing.

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