Auto dealership tricks and scams

Some of the information in this article is outdated.  And there are stereotypes perpetuated on both sides.  Use the "bell curve" illustration: about 15 % of buyers are liars and about the same percentage would apply to salespeople.  Most buyers are simply trying to by a car at a payment they can afford.  Most salespeople are trying to earn a decent living.  And with the growth of internet sales, dealership margins, and sales commissions, are being squeezed.  Don't feel bad for the dealers, though. Most are multi-millionaires with multiple homes, and multiple toys (big boats, airplanes, etc.).

Buyers: Do your homework before going to the dealership.  Research dealer cost on the model(s) you are considering. But remember that the dealer has "back-end" money that would allow the dealer to sometimes sell at, or slightly below, their cost.  Know what you want to buy the car for, not your limits on payment.  The dealership may hit the monthly payment but with you paying too much for the car.  Also, if possible, have your financing in place.  Know your credit score.  Remember: knowledge is power.  On the flip side: "profit" is not a dirty word.  The dealership must make some profit.  However, if you shop without doing your homework, you increase the risk of overpaying.  In addition, if you become uncomfortable during the buying process, say so.  And if your concerns are not addressed, leave.  Finally, and this is best piece of advise: treat the salesperson with respect.  85% of them are honest, hard working professionals.  Treat them the way you would like to be treated.  Also, if you had a good experience, be prepared to provide a referral or two.  The dealership may pay a "birddog" or referral fee if they sell a car based on your lead. And referrals is one way any good salesperson grows their business.

I have been in high line sales for a long time and unfortunately, Clobbersaurus is right. Buyer are liars and articles like this that give buyers bad information just makes the process even worse for the dealership and the buyer. People are not honest and just like the cars.com ad that shows this ultra successful guy being completely intimidated when he is buying a car is so incredibly accurate. I sell $100,000-$600,000 cars so customer service is of the ut most importance but these are the ways you get a great deal and receive great service:

1. You treat your sales person with respect and honesty. Don't waste their time and don't be unrealistic.

2. Do your homework. Edmunds.com is a great site for reviews and trade values, autotrader.com now has a guaranteed trade in value, different manufactures have different profit margins, etc...

3. If you are a jerk...you put a target on yourself to get screwed...it becomes a goal!

4. Know what interest rate you are approved for a car loan and see if the dealership can meet or beat it.

5. If you don't buy locally you are doing a dis-service to your community and you pretty much ruin your relationship with your local dealer if you buy the same brand from somewhere else.

6. Be fair. A great deal is not invoice. A great deal is based on what the market bares. If you want trashy sales people to work at dealerships then just keep grinding till there is no profit and these guys will make no more than minimum wage. If you are fair by negotiating so you have a discount and the dealership/salespers​on make a reasonable profit then everyone is happy.

7. People! Car sales is a business and you are dealing with other people. If you are nice, professional, reasonable and genuine you will be okay. If you are phony, suspicious, treat your sales person like a cheat then that is what you are going to get. We are sales people and we KNOW people and most of us are good with people...and can sum them up quickly!

you hit the nail on the head, the dealership's are selling to the general public the way the general public wants to buy.     Do you try to beat down the price of a head of lettuce?  Do you tell the dry cleaners his price is too high and you will only pay a less amount? The Dentist? The Hardware store? etc.  There has been many attempts by the Auto industry to sell set pricing autos, ie Saturn, Pontiac, But the general public still came in and beat them up over pricing.  It would be much easier and more profitable for the Dealers to sell with set pricing, requires sell salespeople, less manager, (two of the largest expense of a dealership) and to know what you profit margin and profits will be in advance make for better annual planning rather then living month to month.

Do your home work .  Go no line, find out what the FAIR price is then go pay it.  Don't encourage bad behavior.

The first thing you learn when you start on a career of selling automobiles is that buyers are liars.

I cannot even begin to count the number of times when customers:

1. Said their trade was perfect, when in fact their trade had a transmission that was shot, an interior that looked like large animals were mating inside the car, and tires that were balder than Telly Savalas.
2. Said their credit was fine, when they actually stiffed everyone, had FICO scores lower than sea level, and could not finance a box of Corn Flakes.
3. Said they had to check with their wife, husband,accountant, lawyer, or invisible friend before they made a commitment. When a salesman offers them to take the car to show it to them, they start babbling like a duck.
4. Could not count their toes and get the same number twice. Here is a clue, people: You cannot finance a $30,000 vehicle with an out-of equity trade or paying the sales tax with no money down for $300.00 a month for 60 months.

Too many customers read articles like this, and think they are experts. What they wind up doing is looking like idiots when they walk into the showroom.