Killer Car Sale: You Can Do It; It Just Take a Little Time

While reading other parts of the Intenet today, we happened across an article that seemed to promise you would be able to get the auto deal of your life without setting foot to showroom or, if you had to, spending a minimum of time there! Well, after giggling hysterically at the serious "sales pro" who had expounded this line of "expoundation (for want of a better word," we began thinking about our days in car sales (not too many years ago and primarily online, although there was some retail involved), and we began to think that If this so-called "heavyweight" -- "paperweight" would be a more useful term -- advocated and we did have to admit there was a nugget of truth to something he said:

The nugget -- the gem -- the fleck of gold -- "do your homework!" Simple, isn't it, just do your homework and you will get a great deal, you just have to know how. You also have to know a couple of things dealers never like you to hear.

Let's start with the stuff dealers don't want you to hear:

• Most dealerships have to buy their cars, just like you do and they have to pay them off, so they have to move them as quickly as possible or the "floor plan cost" builds up (each car takes up so much floor space -- and dealers calculate their inventory costs in that space)
• Most dealerships have monthly quotas to meet -- even after all the government givebacks and such last year the business hasn't changed much -- and dealers who don't meet those quotas don't get the choice or fast-selling high-profit cars in their next allotments
• Dealerships have streaks of paranoia nine-miles wide; they are sure that everyone is out to get them and that starts with the conspiracy to keep their sales down, especially as they approach the end of the month and they are 10th or 12th or 20th in their district and they have to raise that figure
• Dealerships, to meet that feeling, will go an extra mile or three or six at the end of any month to improve their sales position within the district and thus their finishing spot
• Dealerships have pretty fixed costs for salespeople -- they don't get much on upfront sales (ie, cars) -- so if you can control the urge to buy every option in sight you're much better off
• Dealerships have nine ways for Sunday of building extra cost or finding savings in their vehicles
• Dealerships will do anything to move "old age" vehicles (each dealership describes "old age" differently, some say 60 days, but we knew of one that had vehicles for more than 368 days -- all perfectly new)

  You're probably thinking now "but I knew that stuff already!" The question is this: "Did you and if you did were you prepared to use it?"

  This is very understandable as buying a new car (or used -- rather pre-owned, excuse the faux pas) is about as exciting as having a tooth pulled through your ear without any anesthesia, but it is something that has to be done at some point.

  You can lessen the pain by going to the major auto sites -- Edmunds.com, Vehix.com, Autotrader.com, Cars. com -- and doing research on exactly the vehicle you are seeking.

  Take copious notes and label each site clearly; be sure that they list the incentives that might be available and, if you have a dealership near you, just dial the phone and ask: "Hi, I'm Mr. Schmedlap and I'm thinking of your Turbot 8 Halibut with Green Gill paint and rotary engine, plus a GPS system and full airbags! What kind of incentives are you offering? Be sure to ask about any "hold back" they might have, as well as asking if there are any current week incentive deals on your model.

  Chances are good you will come away with a mountain of information and figures. Be sure, though, you have a manager sign off on anything that is mentioned on the phone and, if possible, fax a piece of paper with the figures you have discussed indicating that you would be amenable to a deal, if the dealer meets the figures.

  Finally, after your homework, comes the "dreaded visit." If you have done you're homework, you already know where you are in price and what types of incentives they''ll offer. All you want to do and we me ALL YOU WANT TO DO now is take the car out for a test drive and no more. Don't negotiate!

  Above all, don't give up your keys even if a salesperson or "sales manager (who may just be a sales closer -- the person who actually a makes the deal)" says It's part of the sales process, we have to know the condition of your car before we can figure your trade!

  At this point, your car is not part of the deal. Just to put them off, tell the salesperson you're there for a test drive to see if the car fits your needs or if you want something else. You can always sell the car yourself on a venue such as Craigslist or eBay and realize thousands more than a dealership will give you. Or, you can look at eBay and do a historical search on prices paid for your car and then tell the dealer "If you give me that for my car, we may be in the ballpark! Not a penny less!!!"

  If it's the end of the month at the end of the model year and the dealership needs the sale, you'll get what you want.

  Here's a ploy to avoid because it's a way for the dealership to find ways to build up their end, esepecially on what they may make from their lender. Never mention monthly payments! Never! Never! Never!! This is exactly the mode the dealer wants to be in because they'll always come back with "Price is never imporant, it's the monthly payment and if we can get it to $250 or less will you buy today." If you're hit with this line, just say "NO!" gather up your papers and leave.

  Don't worry, the "general sales manager" will be on your cellphone within an hour asking what it will take to close the deal. Just tell him: "Meeting my price and the rest is window dressing." If they won't budge from the payment gambit, go elsewhere.

  The object here is to keep control of the sale from start to finish!

  Let's say you:

• Find the exact car you want
• Find the exact features you want
• Find the exact price you want

  What's next? Handing over a deposit, of course. The dealership will ask for your credit card or debit card. Don't hand them either. If they won't take your check or a bank check, then go elsewhere. Plastic adds three percent to any deal and the dealer certainly isn't going to pay it, so you can bump your costs by another three percent here.

  If they are adamant, it's time for "See ya!" and a walk out the door. Don't worry your cell will ring shortly with approval of the deposit. Do youself a favor, lower it, while you're at it.

  Now it's time for the "finance office" -- known in the trade as "the box" -- where a supposed "business manager" or "finance manager," who is little more than a salesman with some management authority tosign will discuss things with you such as wheel care and extended warranties and other things. Just let him or her flap his or her gums and just tell him or her you're there to sign the paperwork and be gone, you're not interested in the rest.

  The reason, quite simply, is with the length of today's warranties and such -- Hyundai is 100,000 miles or 10 years and others are getting longer -- so why go with an extended warranty. Maybe on a certified preowned car, it's justified, but no on a new car.

  With all of this finished, all that should be left is setting up a delivery, final signing and plate transfer and you're done.

  Okay, you've had to deal with the dealership, but, you've gotten your price and the deal you want, what could be sweeter?

  (Source: Author has been an online car salesman, retail car salesman and has written about cars and car sales and other auto-related issues for more than 40 years.)