Do Not Take This Initial Price

Category: Finance, Personal Finance.

Car salesmen are notorious for being misleading and actually going through the process of purchasing a vehicle, from one is, new or used a dance that most of us will have to go through at one point or another in our lives. They are taught a number of ways to distract you and mislead you into giving them the price that they want you to have, all the while making you think that you are getting the deal of a lifetime.

The dealers are coached in a number of different ways to get you to buy the vehicle as soon as possible and at the highest price possible. Sales is truly an art form and I will teach you a few tricks that the dealers use to get you to take their offer. Do not let yourself become emotionally involved with this person on any level. The first thing a salesman will do is try to find some common ground with you and try to give you the impression that he is your friend. They will give you the impression that they are your friend and that the manager or the tower, the person on the phone with the real power, is the real enemy. You will also likely be presented with what is called a 4- square form for you to fill out and a 3- square form if you do not have a trade- in. Remind yourself this is strictly business.

There will be one for the down payment you have, the monthly payment you would like to have, your trade- in value, and the final price of the car. For example, if you do not like what he pencils in as the value of your trade- in and you want to raise it, he can take the profit he lost in the trade- in square and move the profit somewhere else like into the final price or even the financing of the vehicle. This allows the salesman to move profit around from one square to the next. It is made to distract you. Do not take this initial price. They will first pencil in a number into the final price square. In fact, if this is your first visit to the car lot, do not even enter into negotiations.

Wait a week. Wait until the next day. Wait as long as you want, but do not buy anything your first trip. Focus on the final price of the car, because he will keep trying to distract you from it, while at the same time trying to keep you excited about getting into that new car. The purchase of a new vehicle is an emotional experience and salesmen know this. When he asks you how much you want your monthly payment to be, you will give him a number, and he will try to get you to raise that number by getting you to say the maximum you are willing to pay every month. In the end, what you need to do is get them to focus with you on the final price and the final price alone.

It is all about getting you to raise how much you want to spend. You could even ask them if you had to get a certified check there that day to pay for the entire cost of the car, how much would it be?

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