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Negotiating the best deal with a car dealer

by Steve Jeffries

Created on: June 21, 2008   Last Updated: January 12, 2010

"Wheelin' and Dealin'!"

Car salespeople aren't as bad as you think...but almost! As one who made good money for years selling cars, I've decided to give people a "behind the scenes" peek at how many dealers work. Call it penance, clearing the conscience, whatever you like. This is a "wraps off" article to help and inform you if you wish.

It is estimated that between 65-75% of all car buyers will pay more than they should for their vehicle. That's not too surprising. How can anyone really expect to beat the dealer at a game you play once every three to four years while he plays it several times a day?

However, with the advent of information technology, a person can level the playing field a bit more if he knows how to USE the knowledge correctly. It also helps to have some skills in method acting, or at least calling a bluff. However, if you don't, perhaps some of this information will still help you make a bit better purchase.

A dealer has more ways to make money on an auto sale than you can imagine, but not always in the ways you may think. Of course a car dealership has a right to make a fair profit, just like the person who sells you an entertainment center, sport shirt, or even a hamburger.

The key word is "FAIR" profit. Unfortunately, the preconceived notion many people have is that the car salesperson is by nature a CROOK! This has certainly led some dealerships to engage in questionable sales and advertising practices in an attempt to "charm and disarm" an obstinate customer. All of this combative mindset is highly counterproductive. A fair deal can be struck without all the drama by executing a smart buying strategy.

Make no mistake about it, buying a car IS a process, a "game" if you will. It all begins when you arrive at the dealership. The salesperson has an objective right from the start which is to greet you and begin to try and establish some working rapport. He should ask you several questions as to who the vehicle is for and what color or equipment you'd like to have.

All the while, he is collecting information which he will use later in the process. He is happy, (or should appear to be), to show you whatever you want to see. Part of the game for him at this point is to make you feel he's working hard for your business. He may very well be doing just that, but his ultimate aim is to create a sense of obligation within you. He's thinking "how can you just walk away without buying when he's worked so hard for you?"

When the salesperson greets

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