What should you not say to a car salesman?

To avoid giving a car salesman leverage, don't say you need a car, "I love this car," or mention your low credit score; instead, focus negotiations on the total price (not monthly payments), keep your trade-in value secret (get a third-party appraisal), and don't reveal you're paying with cash, as dealers want to make money on financing. Be polite but firm, and act like you're ready to walk away to get the best deal.

What is the red flag rule for car dealers?

The Red Flags Rule (the Rule), enforced by the Federal Trade Commission (FTC), requires automobile dealers to develop and implement a written identity theft prevention program designed to identify, detect, and respond to warning signs—known as “red flags”—that indicate that a customer or potential customer could be ...

What should you say to a car salesman?

When talking to a car salesman, be friendly but firm, focus on the total "out-the-door" price (not monthly payments), state you're ready to buy now if the price is right, and keep your trade-in and financing separate until the car price is set, asking smart questions about history and fees to control the negotiation and get a fair deal. 

How to win against a car salesman?

Car salespeople use various tactics to pressure buyers into purchasing vehicles they may not afford. Staying focused on the total cost of the car, interest rate and fees can help you avoid making a purchase you'll regret. Don't be afraid to walk away if the purchase doesn't feel right.

What not to do when negotiating a car?

• Impulse buying.
• Failing to read the entire contract.
• Failing to question additional charges that may be optional or unnecessary to the sale.
• Getting attached to a car without doing proper research, especially on a used car which may have hidden defects.
• Accepting the dealer's financing.

5 Things You Should NEVER Say | Car Dealers LOVE When you Make THESE MISTAKES

How to not get screwed by a car dealership?

Make sure that the Total Cash Price on the written contract matches the price that you were told. If the prices are different, you may be the victim of fraud. If the dealership refuses to honor the representations made to you by the salesperson, refuse to sign the contract and walk away from the dealership.

What is the 70/30 rule in negotiation?

The 70-30 rule suggests listening should take up about 70 percent of the conversation, with speaking at 30 percent. This approach works because active listening reveals the other side's top priorities, making it easier to prepare a counteroffer that feels fair.

What is a red flag in a dealership?

The “Red Flags Rule” requires your dealership to develop and implement a written Identity Theft Prevention Program (ITPP) to detect, prevent, and mitigate identity theft. Your dealership's highest governing authority must approve the initial ITPP, and take responsibility for it.

What is the 20/3/8 rule for buying a car?

The 20/3/8 rule is a car-buying guideline from The Money Guy Show, suggesting you put 20% down, finance for no more than 3 years, and keep total monthly car expenses (payment + insurance + gas) to under 8% of your gross income to maintain financial health. This strategy helps you avoid overspending, depreciation, and getting "upside-down" on your loan, ensuring your vehicle supports your budget rather than burdens it.
 

What are the four P's of car sales?

The Modern Dealership's Four Ps: How to Beat Your Competition

• While everyone's chasing the latest shiny object, smart dealers are doubling down on what's always worked—Product, Price, Place, and Promotion. ...
• Smart dealers understand that real-time inventory marketing isn't just nice to have—it's survival.

How do I ask for a lower price on a vehicle?

So, let's explore some practical ways to help you negotiate like a professional at a used car dealership.

1. Research the Car's Market Value. ...
2. Set a Clear Budget. ...
3. Shop Around First. ...
4. Visit During Strategic Times. ...
5. Start with a Reasonable Offer. ...
6. Stay Calm and Respectful. ...
7. Focus on the Total Price. ...
8. Ask for the Out-the-Door Price.

How do you get taken seriously at a car dealership?

How to Be Taken Seriously at a Dealership and Negotiate a Great Deal

1. Determine Your Dealership. The first thing you want to consider is the actual dealership and salesperson you want to work with. ...
2. Figure Out Your Budget. ...
3. Learn about Your Dream Car. ...
4. Find the Right Time. ...
5. Get Pre-Qualified.

Why do car salesmen talk to managers?

The ploy, “Let me go talk to my manager" is called a T O or a turn over. Most dealerships require that a salesperson do a T O before letting the customer leave, in other words, if they cant close the deal then they turn it over and let someone else try.

What is Dave Ramsey's rule on cars?

Dave Ramsey's core car rules emphasize paying cash, buying reliable used cars, avoiding new cars unless wealthy, and keeping total vehicle value under half your annual income to stay out of debt and build wealth. His philosophy centers on avoiding car payments, which he sees as money lost on depreciating assets, encouraging saving for a solid, affordable used vehicle instead. 

What not to tell the dealer when buying a car?

"I Don't Know What My Credit Score Is"

No matter if you know your score or not, buyers with low credit scores will be offered higher interest loan rates than buyers with good credit. If you rely on the dealer to tell you what you qualify for, you may get a higher interest rate than your credit score merits.

What is illegal for a car dealership to do?

In California, like many other states, it's illegal for dealerships to commit fraud or make material misrepresentations to sell a car. This includes advertising a vehicle as “clean” or having no accidents when, in fact, it has sustained significant damage. Unfortunately, this happens more often than you'd think.

What credit score is needed for a $40,000 auto loan?

Anything above a 660 (prime) is usually good enough for reasonable interest rates. According to an Experian report, 70% of borrowers fell into this range. The report also found that the average score for financing a new car was 754, and for a used car, 691.

How much would a $70,000 car payment be?

A $70,000 car payment varies significantly but expect roughly $900 to $1,300+ monthly for a loan, depending on term (60-72 months common) and interest rate (e.g., 6-9% APR), or $700-$1,200+ for a lease, factoring in down payments, miles, and money factor, with total auto costs (payment, gas, insurance) potentially reaching $1,000-$1,500+ monthly for a comfortable budget. 

How to avoid car salesman tricks?

To avoid car salesman tricks, focus on the total out-the-door price, not monthly payments; negotiate price before trade-in and financing; resist pressure to buy; beware of unnecessary add-ons like paint protection; and secure financing beforehand to maintain leverage and avoid dealer markups. Key tactics to watch for include bait-and-switch, low-balling trade-ins, creating false urgency, and the "four-square" method. 

What are signs of hidden problems in used cars?

7 Signs a Used Car has Been in an Accident

• Inconsistent Paint or Mismatched Panels. ...
• Uneven Gaps Between Body Panels. ...
• Signs of Frame Damage or Weld Marks. ...
• Headlights or Taillights That Don't Match. ...
• Overspray on Trim, Glass, or Under the Hood. ...
• Gaps in Service Records or Title Issues. ...
• Unusual Tire Wear or Alignment Problems.

What does Carfax not tell you?

Carfax reports are valuable but incomplete; they don't show unreported accidents/damage, minor repairs done privately, most routine maintenance (oil changes, tire rotations), the quality of repairs, current mechanical issues, or how well the car was actually kept, relying solely on data from participating sources like police, insurance, and repair shops. If an event isn't reported to their network, it won't appear, making a pre-purchase inspection by a trusted mechanic essential. 

What are the 3 C's of negotiation?

There are three major strategies for negotiating: compromising, competing and collaborating. Compromise is a must when you are in a relationship where you truly value equality in the outcome, a sort of “split-the-difference” approach where nobody wins- but nobody loses either.

What are the 5 C's of negotiation?

The 5 C's—Clarity, Communication, Collaboration, Compromise, and Commitment—serve as essential guideposts for any contract negotiation, ensuring that both parties achieve a win-win outcome while preserving long-term relationships.

What are the 4 C's of negotiation?

The 4 C negotiation strategy is an approach that aims to create a solid and lasting customer relationship while maximizing the results of a commercial negotiation. This method is based on four essential pillars to conduct an effective negotiation: Contact, Know, Convince, Conclude.