In the market for a car? Is this your first time to get a car? If your answers to both questions are yes, you should be aware of some tricks car salesmen play on consumers to get them to buy a car they're not prepared to buy, or worse, a car they didn't even want in the first place! Read and be educated on just some of the ways they can do just that.
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Encouraging you to take a test drive on a car you aren't seriously considering yet is the oldest trick in the book. Car salesmen do this to establish a sense of ownership between you and the vehicle. When you enter the vehicle, watch as the salesman tells you to adjust the seat, the mirrors, the temperature, and switch the radio to your favourite station. All of these are designed to create an image in your mind of you driving this vehicle on a regular basis. If you begin to see yourself driving up to your house in this car, congratulations you've just been Inceptioned! The most effective way to counteract this tactic is to sleep on it. Never make this big a purchase decision on the same day as your test drive. It helps to let the idea sit at the back of your mind for a while. If you still feel the same way the next day, then it's safe to say that you were meant to buy the car.
Payments vs. Total Cost
Car salesmen are trained to get you to focus on the payments instead of the price. The reason why seems obvious now. However, when you're in the showroom, it's understandable if the big picture gets pushed to the side by the thought of owning a brand new car at monthly payments that don't seem all that unreasonable. The problem with focusing on the payment amount is the tendency to forget about the total amount you'll be paying. The interest rate and the duration of the loan will be overshadowed by how you are only paying "500 every month." When you see that this tactic is being used on you, counter this by saying "I'm more interested in the price of the car. Let's worry about the payments later." After that, most salesmen will counter by saying they want to make sure that the car is affordable and that the payments are within your budget. Remember to hold your ground and they will eventually grow tired and back down. Once you've established the "out the door" price, you may hammer out the details of the payments. The benefit of being firm on the outset is you would have set the tone of the negotiations and you would appear as someone who drives a hard bargain. Don't worry if the monthly payments will become slightly higher than you would like. In the long run, you are still saving yourself hundreds or even thousands of dollars.
"Only for today!" Deals
Dealers and salesmen will try to wrangle you out of your hard-earned money by making you think that you need to finalise the deal today otherwise you're going to miss out. Don't fall for this ploy. If these guys really want to make a sale, the deal will still be there whenever you are ready. Take your time, sleep on it, and once you're comfortable with everything, start the purchase process.
Bonus tip: Know your walk away point
This is not necessarily a trick that dealers use on consumers, but it still bares mentioning here. It's so easy to get so invested in a purchase that you may end up biting off more than you can chew. It is for this reason that before entering into any negotiation, you must set your walk away point. This could be a price point, an interest rate, or an extended loan duration. Whatever it is, you must hold to it and learn to just walk away from the deal after this threshold is breached. It's better to come home empty handed than to be stuck with something that you'll end up regretting for the next 3-6 years. Whether you're shopping for a brand new or used car, doing your homework and coming in prepared will go a long way in securing you with the car and at a price you're comfortable with. If you need help in paying for the car, why don't you try getting a car finance at Melbourne.