6 Ways To Counter Tactics From Car Salespeople
- Car salespeople use various tactics to pressure buyers into purchasing vehicles they may not be able to 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.
When you’re buying a car, salespeople sometimes employ tactics to secure a purchase that work more in their favor than yours. From focusing on monthly payments to pressuring you into making a quick decision, these strategies can cloud your judgment and cost you more in the long run.
By familiarizing yourself with these tactics, you can learn how to counter them and avoid being taken advantage of during the car-buying process.
6 car salespeople tricks and how to counter them
Car salespeople have a playbook full of strategies they use to sell cars. Whether it’s getting you to focus on monthly payments instead of the total price or pressuring you to buy right now, these tactics are designed to work in their favor.
“Salespeople are experts at reading others and are masters of persuasion. That, and car salespeople just generally understand the industry more than the average person,” says Carol Pope, LendingTree staff writer and car insurance agent.
“Although most salespeople have their clients’ best interests at heart, they still want to make a healthy commission.”
Here are some of the most common tactics salespeople will use and what it means for you:
| What they say or do | What it means |
|---|---|
| “Let’s focus on what you can afford per month.” | Focusing on the monthly payment can mask the total price of the vehicle, and reducing the monthly payment often means taking on a longer loan term. |
| “We can give you a great deal on your trade-in.” | A higher trade-in value may encourage you to purchase a more expensive car. |
| Offers you financing without showing rate details | You may be able to qualify for a lower interest rate or better terms by shopping around. |
| Keeps you at the dealership for hours | This can wear down your resistance. |
| “This deal is only available today.” | This provides a sense of urgency that might encourage you to sign off on a deal you shouldn’t. |
| Adds fees or extras during paperwork | Once you think that you’ve agreed to a price, you might let your guard down. Salespeople can use this time to sneak in extra fees or extras. |
Here’s how to recognize these moves and avoid them.
1. The trick: Focusing on monthly payments
By focusing on the monthly payments for an auto loan, salespeople can sometimes work to confuse buyers.
Rather than looking at the total amount for the vehicle, salespeople will present a monthly payment number to convince you, as the buyer, that the purchase is affordable. This can distract from the big picture, which is the total cost of the vehicle.
For instance, if you choose to go with a higher monthly payment, you could pay less interest over the life of your car loan. A smaller monthly payment could mean you pay more in interest.
How to avoid this trick
While your monthly payment is an important number to consider, keep in mind other details such as the car’s overall price tag, interest rate and repayment terms. The average car payment for used vehicles is $528, and $746 for a new vehicle, but use an auto loan calculator to get a better idea of what the total cost of your loan could be.
If you’re worried about affording a new vehicle, use the 20/4/10 rule of car buying. It’s also wise to shop around for loans to secure the best interest rate and stick to your budget.
2. The trick: Focusing on your trade in
A car salesperson could use your trade-in as a bargaining tool to convince you to spend more on a new car. A trade-in value is the predicted amount a dealer would offer you if you trade in your car for another on their lot. Dealers will often offer a competitive trade-in value to encourage your business, but it’s generally lower than what you could get from selling your car directly to another person, because of dealership overhead costs.
The salesperson may offer you a higher trade-in value in order to encourage you to buy a car with a high price tag or tack on unnecessary extras. Ultimately, this doesn’t save you much on the purchase.
How to avoid this trick
Do your research before you set foot in the dealership. Use tools like Kelley Blue Book or Edmunds to determine your car’s value so you know how much you can realistically get for trading it in.
How much you’re getting from the trade-in matters, but don’t let it be a distraction from negotiating the best price on the car you’re buying.
3. The trick: Marking up interest rates
If you’re financing a car through the dealership, they will send your information out to multiple lenders, and each one will provide an interest rate, known as the buy rate. The dealer chooses the offer to present to you, but it may not necessarily be the best rate offered. If a dealer offers a rate above the “buy rate,” they can sell your loan at a premium for more than the value of what you are borrowing.
If you don’t understand how financing works or choose not to shop around for lenders beforehand, you could end up paying more than you expected.
Your credit score can play a very big role in determining the interest rate you might qualify for, as shown by the table below.
| Credit score range | Average new car APR | Average used car APR |
|---|---|---|
| Excellent (800 and above) | 6.81% | 7.92% |
| Very good (740-799) | 6.83% | 7.59% |
| Good (670-739) | 8.22% | 10.75% |
| Fair (580-669) | 19.15% | 21.13% |
| Poor (Under 580) | 22.11% | 23.82% |
How to avoid this trick
Before heading to the dealership, get a preapproved auto loan. This gives you some negotiating leverage if the dealership offers financing, and you may be able to secure a lower interest rate or, at the very least, compare offers to ensure you get the best rate.
For instance, if you use the LendingTree marketplace to shop for loans, you could save an average of $2,346 on your car loan by choosing your cheapest offer.
4. The trick: Drawing the sales process out
When you walk into a dealership, you don’t intend to be there all day, but salespeople may intentionally drag out the car-buying process to wear you down. The longer you’re there, the more likely you are to make uninformed, impulsive decisions just to get it over with.
How to avoid this trick
Don’t be afraid to walk away at any point if you’re not happy with the process. Go in with a plan and take breaks. If possible, leave your children with a friend or other family member. Be sure you have eaten and are hydrated so you can focus on the process without feeling impatient and agitated. Remember, you can always come back another day.
5. The trick: Pressure to act fast
There’s a chance a car salesperson could pressure you to buy now or lose out on the deal. Salespeople might tell you there’s a special offer about to expire or another buyer is interested in the car you want to purchase, even if it’s not true.
This is used to create a sense of urgency and get you to move forward with a purchase you may not have been prepared to make.
How to avoid this trick
If you’re feeling pressured, just say no and take some time to think it over. Additionally, waiting until the end of the month, when dealers need to hit quotas, may help you score a better deal by negotiating the car price.
“Remember that you are the one with the final say, always. If you’re feeling steamrolled, don’t be afraid to walk away,” says Pope.
6. The trick: Not explaining fees and add-ons
Dealers may sneak in additional fees or unnecessary add-ons that you don’t need or want, such as extended warranties, gap insurance, or paint protection, to increase the price of the car. And if you aren’t paying attention, you might not notice or think they are dealership fees you must pay. But you have the right not to pay optional fees. Even some dealership fees can be negotiable.
How to avoid this trick
Before you sign anything, ask for a breakdown of all fees. Don’t hesitate to negotiate or simply say no to fees for things you don’t want or need. If they’re non-negotiable, make sure you know exactly what you’re being charged for.
“The salesperson will probably aggressively offer extras when you’re signing your final paperwork,” says Pope.
“If you’re not interested, but they won’t stop selling, politely let them know that they’re wasting time. It can take guts to speak up, but salespeople are used to hearing no. Just be nice about it.”
What not to say to a car salesman
When negotiating with a used car salesman, avoid revealing too much information, as it can be used against you.
For example, sharing your maximum budget can limit your room to negotiate. And if you express a strong interest in a particular vehicle or say you urgently need a new car, the salesperson might use it to their advantage by offering you the vehicle at a higher price or rushing you to make a decision.
“Never tell a car salesperson that your current car is broken down or that you’re desperate for a ride. That immediately tips your hand and shifts the power from you to the dealer,” Pope says.
“What you should do, though, is show how much the dealer you’re able to spend by bringing along a preapproved car loan. If they want to make a sale, they’ll have to stay within that budget since that’s all you’re tentatively approved for.”
Before you go to the dealership
If you’re getting ready to buy a new car and are looking to counter some of the common salesman tricks, here are a few things that you will want to do before going to the dealership. Being prepared can help reduce the chances that you’ll fall for a salesman’s tactic.
- Get preapproved for a car loan ahead of time. Having a loan offer in hand gives you leverage and a baseline to compare dealer financing.
- Know your credit score. Understanding your credit helps you anticipate interest rates and avoid financing surprises.
- Set a max price you’re willing to pay each month and overall. Knowing your maximum monthly payment and the total price can help you avoid being talked into something you can’t afford.
- Research vehicles. Comparing models, features, and reliability lets you walk in with a clear idea of what you want.
- Understand certified pre-owned (CPO) versus used cars. CPOs are used vehicles that have gone through a rigorous inspection process and may come with a dealer warranty. Non-CPO used cars are less expensive but likely won’t come with a warranty or be as thoroughly inspected.
- Know your trade-in value. Looking up your current car’s value before you go to a dealership for a new vehicle can give you the upper hand when negotiating with the dealer and help you avoid lowball offers.
Dealer financing vs. lender financing: What’s the difference?
| Dealer financing | Direct lender financing |
|---|---|
| Dealer financing is convenient – you can purchase your car and get a loan at the same time. | Direct lender financing typically requires you to apply for an auto loan separately from when you shop for your vehicle. |
| Dealers may mark up lenders’ interest rates to earn a profit. | Lenders like banks and credit unions often offer more transparent and sometimes lower rates. |
| Dealer financing is part of the overall deal, which can make total pricing less transparent. | With direct lender financing, you can negotiate the car price separately since your financing is already secured. |
| When you finance through your dealer, it can be harder to compare offers because everything is bundled. | When you shop around before going to the dealership, you can compare multiple loan offers before choosing a car. |
| Dealers may offer promotional deals or incentives on their loans, often tied to specific vehicles. | Lenders allow you to be flexible and choose any car without being tied to dealership-specific promotions. |
Frequently asked questions
Car salesmen make an average of $83,155 annually, according to data from Indeed. However, in the highest-paying markets, a car salesman can make close to $174,000.
Don’t reveal your maximum budget, rush into a decision, or express too much excitement about a specific car. Stay focused on the negotiation and don’t give away your leverage.
No, salespeople usually earn a commission based on sales, so tipping isn’t necessary.
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