Six Car Sales Traps You Need to AvoidThere are plenty of different things you need to bear in mind when buying a new vehicle. There are also a few traps you need to look out for.
Car dealerships are designed to sell as many cars as possible. This has lead to some sales tricks and tactics you should avoid.
1.Ignore the Upsell
Upselling is the technique of adding bits and pieces onto a deal to try and increase its value. A salesperson may attempt to sell you certain products or services along with your vehicle. Want the 19 inch rims? What about leather seats? Or a tyre and paint protection insurance package?
These things might offer a little extra utility for the price increase, but are they REALLY necessary? Probably not. Focus on buying a car, not on the extras that can come with it.
2. Don’t Buy The First Visit
An important point to remember is that you don’t need to come away with a car the first time you visit a dealership. The car dealer’s big aim is to get a deposit out of you; they know once they have that, you’re likely to follow through on the purchase.
We recommend NEVER to pay a deposit until you’ve given yourself at least a day to think it over.s. We are emotional beings and can easily get excited about new cars: a rushed decision can often be one you will regret.
Take time to consider your options, and always shop around. You may feel pressured into accepting a certain deal if a salesperson insists that a vehicle is set to be sold at short notice. Again, this is a very common sales technique. Don’t get fooled by the creation of false urgency!
3. Always Ask About History on Used Vehicles
Car dealerships and salespeople are obliged to give you the full vehicle history if requested. If it’s not immediately clear where a car has been and what it’s done, you will need to start asking the right questions.
Ask to read the service manual to ensure the car has been regularly serviced. Read up on common problems which your car is likely to face coming out of the caryard. New cars won't have these known problems, but it's still worth asking questions you have on your mind.
4. Negotiate Up, Not Down
This may sound strange, but you should think about negotiating up rather than down. That means you should research the buy price the dealership paid for a vehicle you have your eye on. Often these are available online. Rather than negotiate down on their asking price, negotiate up on their buying rate. If you can’t find their buying rate, you can at least research the prices advertised by dealerships Nationally on car listing websites.
While this could be seen as sneaky, it’s a mutually beneficial move. That is because the dealer still gets a return on their purchase, while you get a significant saving on the asking price.
5. Think About Substance Over Style
When it comes to buying a car, you should always think about performance and value first. You may be swayed by the way a particular car looks or by the premium brand; however, you never know what’s going on under the hood. Don’t be swayed by sales tactics that focus on aesthetics! Ask plenty of questions, and always go for a test drive.
6. Avoid the Finance Manager
Many car dealers won’t let you out the door until you’ve been handed over to the Finance Manager (often called the ‘Business Manager’). These Finance Managers have huge sales targets and often only have one lender to choose from. A common trick is to say, “We can get you a rate of 4.8%” without providing you any written approval; then, when you come into sign up for the vehicle, the loan documents have a rate much higher than what you were promised.
Dealership finance can be a costly mistake; always get your finance approved BEFORE you walk into the car dealership.
Preparing yourself for a car dealership visit shouldn’t be scary. Purchasing your first car? Our friendly finance consultants can help you get a finance pre-approval from our panel of over 40 Lenders. They can also help you source new vehicles at fleet prices without having to deal with car salesmen. Call Auto Car Loans today on 1300 301 051 to learn more.
DISCLAIMER : The thoughts and opinions conveyed on this website are those of the authors only and are of a general nature. This does not constitute financial or general advice to you from Auto Loans Group. You should seek your own independent advice from a professional which is specific to your circumstances before considering any of the items referred to in this article, including finance, insurance, and car buying.