10 Common Car-Buying Mistakes

  This article and most like it are simple nonsense. I have not been in the auto business, but have been in the RV business for the past 15 years, both retail, finance, and now wholesale for the last 6. Most of these articles encourage the average customer to try to have a business relationship with a dealer built on a foundation of deceit.

  They advise you to tell the dealer you are a "cash" buyer, even when you're not. Tell the dealer you are not trading in your car, even though you are. Never talk about what your payment "budget" range is, even though that is the most common criteria for a consumer buying or not buying a vehicle. What good does it do for a dealer to sell you a car for invoice, give you full average book wholesale for your trade, just so you can go to the F&I office and tell the business manager you can't afford the payment that this transaction equals. And, all the while, the salesperson or sales manager can't help you find the right vehicle because you keep lying to them all along as part of your strategy!!!

   There is no excuse for an uninformed or even worse, an ill informed customer. The internet affords you all the research tools you need. I can tell you from 15 years experience, consumers lie to the dealership employees far more than MOST professional salespeople lie to the public. As a sales manager for a large motorhome dealership in the past, I fired a 10year + salesperson because we caught him in a lie to a customer. The days of the lying, cheating, "throw the trade keys on the roof" sales tactics for cars or RV's is long gone. Are there some dishonest salespeople out there? Of course there are, but probably less than there are working on Wall Street, in Government, or even your local union halls.

    It's really very simple.

1. Find the vehicles you like, make a list, narrow it down, stay in budget.

2. Research those vehicles, not just on Consumer Reports, but Car and Driver, Auto Week, Road and Track, JD Powers, Cars.com, Edmunds, etc, etc.

3. Talk to your own local bank or credit union to obtain current car rates. A lot of them will even give you a pre approval so you have an idea of rates, terms, payments, etc.

4. Go to a local dealer for the brand you want, ask to speak to the sales manager right away. Introduce yourself politely, explain that the car buying process is a little intimidating to you, and you'd like a sales person that is patient, knowledgeable on the products, and willing to help you through the process, including a test drive that doesnt; just go around the block. (You'll generally get one of the better salespeople, and feel free to ask them how long they have been with that dealer.)

5. Tell them upfront what kind of vehicle you're after, that you are going to shop around, that you are not interested in dealer added products, what kind of trade you have, (please bring it or don't expect them to be able to give you a price), and what sort of payment "range" you're hoping to find.

6. If and when you elect to buy, allow the Business Manager to compete for your financing. That's how he gets paid and it costs you nothing. Depending on the volume of the dealer, he may very well be able to get you better terms than you can on your own as a "single" transaction. At the very least, he can verify that the local loan you checked into is a good deal.

7. Lastly, consider any dealer products on a price VS value basis, remember that MOST of these products are also negotiable, and there is no absolute right or wrong answer to buying or not buying these products. It's up to you to decide if they have more value to you than the price, whether that's an extended warranty, maintenance program, pinstripes, etc, etc.

re : freedom1955

Sorry to say you are way off. I worked in the automobile business for almost 20 years. I held many positions from sales to business mgr to general sales mgr. The markup that dealers work with today is about 5% on a very basic model up to 9-10% on the most expensive ones. ( american made ). On the imports it is quite often less. Now this is the amount over "invoice". The dealer does have what is called "holdback" and that is usually about 3% and is given to the dealer after he sells the car. The expense to run a store is huge and should be taken into context. Furniture markup is 2-300%. How often do you negotiate that?

For the life of me, I can't understand why everyone is always picking on car dealers, STILL, after all the changes that have come to the retail auto industry. Are there a few rotten eggs out there? I'm sure there are, however, most of the dealers have changed ownership and cleaned up their act since the 1990's. Factories (car manufacturers)  no longer tolerate poor customer satisfaction with a dealer, as it reflects badly on them as well. Ford, Acura, Honda, and Toyota have all shut down dealers and revoked their franchise license over bad CSI scores.

Most of the people I know that work in dealerships are honest, hard working people just trying to survive, pay their bills, and take care of their family. Why do you have to walk into a dealership with a chip on your shoulder? Do your research FIRST. Go online, talk to the Better Business Bureau, get your research done, talk to friends, neighbors, and co-workers. That is how you find an honest dealer. If they had a good experience, most likely you will too.

I haven't seen MSN or Consumers Reports, or anyone else for that matter, do an expose on Furniture stores or Jewelry stores. You want to begrudge a salesman from making  5% markup on the car, yet you'll pay a 400% markup on furniture, and up to 1000% (that's ONE THOUSAND PERCENT) markup on jewelry. That $20000 car that cost the dealer $18980 vs. the $20000 diamond ring that cost $3000.... but let's just jump on the bandwagon and beat up car people. They're an easy target!

Times have changed, and so has the car business. If a dealer rips people off, they will eventually be driven out of business. Be informed, educate yourself, research your car choices, and when you walk into the dealership, you can actually enjoy the experience. Who knows, you might even make a new friend if you keep your mind open. An ignorant consumer is his own worst enemy. A salesperson would much rather deal with a customer that KNOWS the real facts than someone who is clueless and assumptive. When an informed customer walks in and states "I want to buy this car for this price, and get this money for my trade", it makes the job so much easier for the salesman. For all you idiots out there telling people to get your own financing.... GET A CLUE!! Most dealers can get you a significantly lower rate than your own bank or credit union.

Have a trade? Know what it is really worth before you go car shopping. Kelly Blue Book can be a good guide, but it is only a guide. They will not buy your car from you. If you really want to know the actual cash value, don't waste time on books. Just drive your trade to 4 different dealers, tell them you don't want to buy anything, you just want to sell your car. Ask them how much they will write you a check for. Throw out the lowest price and average the rest. That is what your trade is truly worth.

Best advice - know what you want, know what it costs, know what your trade is worth, be ready to make a deal if you get what you want, and keep an open mind when you talk to "the two headed monster" in the Finance Office.

first off, thanks for the article defending the salesman's right to earn a living.  we are, after all, SALESMEN, not clerks at wal-mart.  we have a right to earn a decent living, and you have a right to protect your money.  we know going in it's a major purchase, and one that the buyer feels he is underprepared for.  most buyers i deal with are more prepared than most of the salesmen i work with!  they know the product better, have researched the competition, and many will ask a sales representative a bunch of questions just to make sure that we've done our homework!  meaning, again, most salesmen are less prepared than their customers, and therefore, not worth paying a premium. some of us, though, WILL stay at ONE DEALERSHIP and provide you with a good contact if you ever need help.  had 05 mistake bought his car from me, i would have been in his corner, talking to my service department, working the service manager for assistance, hell, even called ford's district manager if needed.  that is the difference between a professional salesman and the guy that changes dealerships more often than he changes underwear. consumers tend to blame the salesman for issues, though we did not manufacture the car, will not ever service the car, etc. because we are the 'face' they are familiar with.  when you go back and that 'face' isn't there anymore, i agree, it is frustrating, and now you have to start from the beginning explaining your issues, problems, concerns, etc. best way to ensure you get a guy that is in it for the long haul?  call in advance and ask the receptionist for their most tenured sales person.

in response to a few of your comments...

b-solara-  just ask to see the invoice!  if they say no, go down the street.  there's really not much to hide on them anyway, and any sales manager knows this.

freedom1955- i heard you were so ridiculously uninformed that the internet has threatened to take itself off your computer if you keep posting.  you should be ashamed.  seriously.  see vermont bob's comment.  go buy a couch or some jewelry, and really, seriously, stfu or do some research.

rstepesq- you can cure excessive % rates by paying your bills and taking care of your credit in general.  feel free to bring your own financing, but give the car lot a chance... sometimes we can beat rates!  and while we are on the su****ect of 'value...' have you considered the manufacturing cost of the crap they sell at Publix, Kroger, Safeway, etc vs the purchase price?  how much do you think it REALLY costs to manufacture a television? not anywhere near the price you pay, that's for certain. not to mention any of the other million or so items that are 'bargain priced' there.  and i bet you drive the posted speed limit everywhere you go as well, and that when you poop the scent of fresh cut roses fills the air.  listen, bub, car guys work some very long and ridiculous hours to feed their families, and to have a person post on here that we are 'below lawyers, but above televangelists' is just a tad insulting.  i'd like to know what you do for a living, not because i'm interested, but because i'd like to say something negative about it. 

05mistake (pre-emptive strike here) we already know.  you bought a mustang, didn't like it, had issues, and ford will not work with you.  you feel that no one should buy a ford.  you are wrong, but, you are entitled to your opinion, even if you haven't stated it on this particular thread as of yet.  i'm guessing you may have visited the service department so many times with your 'the sky is falling' routine that they just don't wanna help any more.