There are some car buyers who were not able to get the best deal just because they said something at the dealership they shouldn’t have said. Dealers don’t tell buyers everything about their business. In the same way, there are a few things you shouldn’t let dealers know about. Here are some:
“I haven’t seen my credit report yet.”
Telling the sales rep you don’t have a copy of your credit report in hand is like giving him permission to do their trick. In this case, unscrupulous dealers would pull out a copy for you and lie about your credit score. People with bad credit are more vulnerable to this kind of trick. If your score is 670, for example, the F&I manager can tell you that your score is 620, one tier down. This is so they can charge you an interest rate higher than what you actually deserve.
To avoid being lied to about your credit score and being charged an exorbitant rate, never walk into a dealership without a copy of your credit report. Make sure you know where you stand in your credit before entering into any negotiation.
“I can pay only $300 a month. What model can you recommend?”
Saying something like this is a big no-no while talking to a dealer sales rep. Never tell him how much monthly payment you can afford. It’s also unwise to shop monthly payments. Why? The sales rep can always give you the exact monthly payment you say you can afford. But guess what? They’d still make good money out of the sale.
You have to understand that monthly payments should never be your basis of car affordability. Let’s say the sales rep recommends a Lexus car and tells you he can give it to you at $300 a month. Sounds very nice. But any old-timer would know that a pricey make like Lexus wouldn’t sell new cars at such a bargain. When a dealership agrees with the monthly payment you want, they could either jack up the interest rate or car price or extend the financing term—and these make you spend more.
“This car is my baby!”
Believe it or not, experts do not recommend expressing your thoughts too much about a car, especially if you like it. If you do, the sales rep can easily talk you into a car which can be more expensive but unnecessary. Therefore, do not visit any dealership unless you have a specific vehicle in mind to buy.
“What kind of interest can I get?”
Negotiating the financing rate before the car price is a mistake. It will be harder for you to negotiate for a lower car price if you do. Remember that the car price is always marked up and that you can negotiate for a price of as low as the invoice or even below the invoice. Thus, negotiate the price down first before discussing financing.
It is also better to get approved for an auto loan before walking into any dealership. We at Oklahoma Auto Approval Center can help you with that.