5 Sneaky Dealership Traps (And the ONE Sentence That Crushes Them)

Summary

In this eye-opening video, a former car dealership insider reveals the top five deceptive sales tactics commonly used to trick car buyers. From lowballing trade-ins to confusing pricing forms, finance rate markups, unnecessary add-ons, and the assumed close, the video exposes how dealerships manipulate customers. The speaker offers practical advice, including five key sentences to use during negotiations that can protect you from these traps. By arming yourself with this insider knowledge, you'll be better prepared to navigate the car-buying process and avoid being taken advantage of.

Takeaways

• 😀 Don't let dealerships lowball your trade-in value. Always say you're not trading in your car today to regain control of the negotiation.
• 😀 Be cautious when the dealership pulls out a form like the 'Foursquare'. Focus on negotiating the 'out the door' price first, not monthly payments.
• 😀 If you're financing through the dealership, always ask what the bank approved you at for your finance rate. This will help you avoid unnecessary markups.
• 😀 Refuse dealer add-ons like paint protection or nitrogen-filled tires that you didn't ask for. Simply say, 'Please remove everything that I did not ask for.'
• 😀 Never let the salesman assume you're committed to buying. If they push ahead, remind them you haven't agreed to buy yet and hit the brakes on the process.
• 😀 Always negotiate the price of the car before discussing your trade-in. If you've already handed over your keys, demand them back immediately.
• 😀 Understand that dealerships often create psychological traps, such as anchoring, to manipulate your perception of a deal. Stay focused on the numbers.
• 😀 Don't be intimidated into accepting a bad deal just because they hold your keys or create a sense of urgency. Stay firm and know you can walk away at any point.
• 😀 If the dealer insists on additional products or services, assert your refusal by saying you didn't ask for them and demand their removal.
• 😀 Being informed and asking the right questions at every step, like 'What did the bank approve me at?' can potentially lower your finance rate or save you money.

Q & A

What is the first trap car dealerships use to manipulate customers?

The first trap is 'lowballing your trade.' Dealerships offer a low price for your trade-in car by pointing out minor issues like high mileage or the need for repairs, creating psychological pressure to accept a lower offer.

How can customers avoid falling for the 'lowballing your trade' trap?

Customers can avoid this trap by stating, 'I'm not trading my car in today.' This shifts the focus to negotiating the price of the new car first, without the trade-in influencing the deal.

What should you do if you've already given your keys to the dealership for appraisal?

If you've already handed over your keys, simply ask for them back immediately. If necessary, threaten to call the police for theft to regain control of the situation.

What is the second trap mentioned in the video?

The second trap is the 'Foursquare' worksheet, which includes the price of the car, trade-in value, down payment, and monthly payment. This form can confuse customers and allow dealerships to manipulate the deal by altering terms like the price, loan term, or interest rate.

How can customers protect themselves from the Foursquare worksheet trap?

Customers should focus on negotiating the 'out-the-door' price, which includes all fees and taxes. They should refuse to negotiate based on the Foursquare form and instead calculate their own monthly payment with the final price of the car.

What is the third trap dealerships use in the video?

The third trap is the 'finance rate markup.' Dealerships often mark up the interest rate on loans beyond what the bank approves, earning a profit from the difference.

How can customers avoid being charged a higher interest rate by the dealership?

Customers should ask the finance manager, 'What rate did the bank approve me at?' This simple question can sometimes prompt the dealership to lower the rate, especially if they feel they might lose the deal.

What are some common dealer add-ons customers should be aware of?

Dealer add-ons include things like paint protection, nitrogen-filled tires, bed liners, and pin striping. These are often added to the price of the car without the customer's consent.

How can a customer refuse unwanted dealer add-ons?

Customers should tell the salesperson, 'Please remove everything that I did not ask for.' If the dealer pushes back, firmly state that you did not authorize those add-ons and insist they be removed or you'll walk away from the deal.

What is the fifth trap car dealerships use that can trick customers?

The fifth trap is the 'assumed close.' Dealerships may proceed with paperwork and start setting up delivery without confirming whether the customer has agreed to buy the car, assuming the deal is already done.

How can customers stop the 'assumed close' from happening?

If the salesperson starts acting as though the deal is final, customers should say, 'I haven’t agreed to buy yet.' This resets the negotiation and reminds the dealership that the customer is still in control of the decision.

What are the five key sentences the video suggests customers remember?

The five key sentences are: 'I'm not trading in my car today.' 'I only want to negotiate the out-the-door price.' 'What did the bank approve me at?' 'Remove everything that I did not ask for.' 'I haven’t agreed to buy yet.'

How can these five sentences protect a customer when buying a car?

By using these five sentences, customers can avoid common traps like lowballing their trade, confusing paperwork, high finance rates, unwanted add-ons, and the assumed close, putting them in control of the deal.