Things You Should Keep To Yourself When Car Shopping
Written by
Cynthia Measom
Edited by
Rebekah Evans
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When car shopping, saying the wrong thing can give the dealership the advantage and wreck your chances of getting a money-saving deal. That doesn’t mean you have to lie, but you also don’t need to share everything. According to U.S. News & World Report, you should keep the following to yourself while you’re at the dealership, to avoid any car buying mishaps.
The Amount You Can Pay Each Month
If you tell the salesperson how much you want your vehicle payment to be, there’s a good chance the dealer will build the deal around that number. You might end up with a longer loan or extra costs just to fit the payment you mentioned. If the salesperson asks what you want your payment to be, tell them you want to focus on the total price of the car, including the loan length and interest rate.
You Plan To Pay for the Vehicle Upfront
It might seem like paying cash for a vehicle would help you get a better price, but that’s not always the case. Dealerships make money on financing, so they may not be willing to lower the price if they know they can’t earn anything from the loan. If you’re asked about financing, simply say you haven’t decided yet.
You Have a Trade-In
If you disclose you have a trade-in, you’ll give the dealer a chance to work the deal to its advantage. For example, the dealer may give you a lower-than-average offer for your trade-in and, in turn, lower the price of the car you’re interested in to make it look like you’re getting a great deal. Or it might give you a higher offer for your trade-in to satisfy you but raise the price of the car you’re interested in. Either way, you lose. Negotiate the new car price first, then ask what they’ll offer for your old one.
Your Car Has Issues
If you say your current car is falling apart, the dealership might assume you don’t have time to shop around. That means they won’t feel pressured to offer a better deal since they think you’ll buy something no matter what.
You Have Your Own Financing
Getting pre-approved at your bank or credit union before shopping is smart. Telling the dealership about it right away isn’t. If the dealership knows you already have financing, it may be less flexible on the price. Only talk about financing once you’ve negotiated the price of the car.
You Have Your Heart Set on a Certain Car
It’s OK to get butterflies at the sight of your dream car. Just don’t make it obvious. The more excited you seem, the more the salesperson will think you’re all in. And when that happens, the dealership may not be willing to work with you on the price.
You’ve Never Purchased a Car Before
You don’t need to pretend you’re a car-buying expert, but you also don’t need to tell the dealer it’s your first time buying a new car. Unfortunately, being clueless about the process can make you an easy target. Get someone experienced to go car shopping with you so they can steer you away from a bad deal or a warranty you don’t need.
You Have No Idea What Your Credit Score Is
Before you shop, it’s smart to check your credit score and do some research on what type of rate your score might qualify you for. That way, if the dealer offers a loan, you’ll know whether the interest rate makes sense. Without that information, you’re trusting the dealer to tell you what you qualify for, which could work against you.
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