40% of people regret buying their car. Why? Car salesmen are experts at making you overspend.
Lucky for you, they all use the same tricks. Watch out for these 5 sales tactics when buying your next car:
1. Emotional Attachment
If you allow emotions into the decision, you will overspend. And you will regret it. Car salesmen know this, so they want you to fall in love with the car:
• Test drive it.
• Connect your phone and play your favorite music.
• Keep it overnight.
If they can make you feel like the car is already yours, emotion has entered the decision, and they have won.
Remember: The emotion will fade. Your car will become just a way to get from Point A to Point B. But the expensive car payment will remain.
2. Focus on Monthly Payments.
Salesmen know if they can shift your focus away from the total cost of the car and towards the monthly payment they can get you to overspend.
Know this: The monthly payment is the LEAST important part of the cost.
The most important:
• Length of the loan.
• Interest rate on the loan.
• TOTAL cost of the car.
An extra $100/month may not sound like much today. But over 6 years? It's an extra $7,000.
First, negotiate the total cost of the car. Second, negotiate the terms of the loan.
3. Added Costs
You've agreed on the price of the car & shook the salesman's hand, negotiation over, right?
Wrong. Now you enter the Finance Manager's office. His goal is to sell you:
• Extended warranties
• GAP insurance
• Higher interest rate
• Prepaid maintenance plans
Do not let all of your hard work you just did negotiating with the car salesman go to waste. Be on your guard.
Do your research on warranties before you ever enter a dealership. And do not accept a higher interest rate on the loan. This can be one of the most costly mistakes.
4. Limited Time Offers
The salesman will create a fake sense of urgency to push you to purchase the car quickly. They will tell you:
• Someone else is looking at the car you're looking to buy.
• Their offer is only good for 24 hours.
• The sale is ending soon.
Most sales are fake. 24-hour offers can be extended.
Maybe someone else IS looking at the same car, but that's not a reason to rush into a decision.
Even in today's market, you can get a good deal if you're patient. Doubt everything they say.
5. Exhaust You
Most people experience car buying as exhausting. This is intentional.
A tired buyer is a desperate buyer. And a desperate buyer will agree to any terms and feel too invested to walk away.
If you're tired, you're in a bad headspace to buy a car: walk away.
Avoid overspending on a car:
1. Research before you go to a dealership.
2. Focus ONLY on the total cost.
3. If you are confused, walk away.
4. If you are tired, walk away.
5. If you are emotional, walk away. Your greatest resource is time. Start shopping before you NEED a car.