Common Dealer Tactics

The Guilt Trip - In case you haven't noticed, every desk in the dealer's sales department is covered with photographs.  Not photographs of cars, as you might expect, but photographs of children and teenagers.  Midway through negotiations, a good salesperson will bring them up.  "Little Johnny's going to need some braces next month" or "I've got three beautiful daughters, all of them in college."  The commission the miserly dealer pays them ("their only source of income") comes up next.  A smooth operator will soon have you feeling guilty for trying to hack away at the commission they desperately need for little Johnny's braces.  You don't fall for this because you know about dealer holdbacks; you are aware that they make a reasonable profit; you know this is a manipulative attempt to send you on a guilt trip.  Ignore the tactic.

The Lost Keys Routine - For many years, the misplaced keys routine was standard.  The salesman gets your car's keys when you go on the test drive, long before any real negotiations commence.  In the event negotiations aren't going your way and you want to leave, the keys are unfortunately mislaid.  The used car manager launches an intensive search, while your salesman turns the screws.  Many deals were closed in this way, because the salesman had additional time to wear people down.  The longer you're at the dealer, the more likely you are to give in to their pressure and buy something.  Don't ever give the salesperson your house keys, they could turn up missing as well.  The lost keys routine doesn't happen much any more, but bring along an extra set of keys just in case, and recognize long waits and delays for what they are: techniques for wearing you down. 

Don't Let Them Wear You Down - Salesmen are trained to delay and weary people to the point where they surrender and accept their price.  Watch the first 30 minutes of the movie "Fargo"  for an excellent illustration of this tactic. Your salesperson may claim every new offer and counteroffer must be approved by a manager.  Sometimes they really do have to run offers by a manager, sometimes not, but either way you're left sitting alone for long periods of time.  You know why.  Tell the salesperson you want to talk with the manager directly, within a certain amount of time, and be prepared to leave by then if you're still waiting.

Monthly Payments - Salespeople usually start talking price by discussing monthly payments. For example, "If I could get your this car for $290 a month, would you be able to afford it?"  Do not let them continue with their tempting monthly-payment scheme.  Politely tell them you're only interested in establishing the dealer's asking price.  Make it clear you're seriously interested in buying a vehicle if you can settle on a price that's fair for everyone.  If your salesperson can't tell you the dealer's invoice and asking price, ask to speak to a different sales representative, or go to another dealer.  

Haggling: Negotiate Up From Invoice, Not Down From MSRP is on the next page >

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