Negotiating

If you allow yourself to become confused or don't know the facts, you open yourself to manipulation.

The salesman receives a commission AND the finance person (F & I person) receives a commission on what they sell. The sales manager gets a commission on what both of those people sell. The dealers "pack" at the point of sale and at the point of signing the documents.

The Sale
The salesman will try to talk to you only about monthly payments because if you commit to an amount per month that amount can be manipulated to fund a higher loan by changing interest rates and length of loan period. Products and services that you would not buy can be "packed" into the sales price. If you negotiate only on the total cash price of the vehicle there is less room for confusion and manipulation.

If you commit to a monthly payment you do not know how much the vehicle is costing you. Always figure out the total amount you are paying for a car.

If the salesman made any representations to you, require him to put those in writing with his signature and date. Usually, the representations will be that "the car has never been in an accident"; "its in excellent condition or we could not sell it"; "the dealer checks it out before selling it so it is safe" (make sure this includes engine, transmission, electrical and brakes); "you are getting this car below the invoice price"; "we warrant all our cars"; etc.

The Finance Guy
After you agree to buy the car (usually after several hours of negotiation) you are taken into a small room to sign the lease or contract of sale. At this time the finance guy has an opportunity to sell you something more. He or she will try to pack the sales contract by selling or inserting a paint protection service, a service contract, insurance, other terms you did not agree to. The sales price you agreed to may be increased. During a recent sale at a "reputable"dealer the finance guy who had been doing this job 13 years, increased the sales price $2,000. He made three "errors" on the contract which would have been costly to the consumer. The consumer caught each: "Oops, there's a mistake." He had to prepare three different contracts before he had the contract that had been negotiated. He knew exactly what he was doing.

Attempts are made to keep the consumer from carefully reading what they are signing: The contract is not shown to the buyer until the buyer is tired and ready to leave the dealership. Sometimes the sales people will sidetrack the buyer by telling sad or extraordinary circumstances in their families to elicit sympathy. You get so caught up in the story that you don't protect yourself and don't read what you are signing.

You are expected to have read, understood and agreed to what you sign.

Some dealers are "neglecting" to credit the consumer with the down payment!

Check every typed in entry on the contracts. Is this what you agreed to?

Remember you have at least two people directly selling you product and services: the salesman and the finance person. .