Top Secrets of Used-Car Buying

I am again looking to buy a quality used car for a good price. I’ve been browsing dealership inventories online to avoid going on lots in person and get hassled and pressured into buying right then. When I see a car that I’m interested in, I’m going to try and get all the facts and be on top of the game when I walk through those deceiving dealer doors.

Salesmen are sneaky and well-trained on how to be liars. They make the entire used-car buying process uncomfortable. They not only want to sell you a car immediately, they are going to want to sell extended warranties at major markup prices and lie about customers credit ratings and trade-in values. A very nasty tactic they sometimes use is hiding monitors in their desks so that they can listen to their customers’ conversations when they step out for a few minutes. One salesmen admitted to strongly suggesting extra accessories, such as anti-theft devices, to unwary women shoppers.

Here are some top secrets of used-car buying that I have compiled from my experiences with salesmen.

1. DON’T DIVULGE TOO MUCH

Don’t divulge too much information, such as the amount other dealers have offered you for your old car. Customers should refuse to discuss a trade-in until negotiations are complete on your car. Only then should you start haggling and saying how much other places were offering you for it.

Even when not trading-in, don’t let salesmen know how much a previous dealership offered you until after a price has been reached. If they know right off the bat that Lee Ford, for example, was going to sell you a $19,000 2003 Eclipse GT with comparable accessories and mileage for $17,000, then they will know they can sell you their same car for at least $17,000. Who knows, their car may have been able to be sold for $15,000.

If that’s the lowest a dealer is willing to go and you feel it should be lower, THEN bring up what another place quoted you.

2. PRICES

One used-car customer in Arizona wanted to trade in a late-model Toyota minivan. It was valued at about $10,000. However, the dealership confused her so much with paperwork, that she ended up with only $1,500 for the vehicle.

Stay focused and read everything that the salesman is showing you. If he doesn’t show you something, ask to see it. It’s your money that they are playing with and you have a right to know everything that’s going on.

Beware of “specials” in the used-car world. Prices on the window are usually higher than the amount the dealer really wants for the vehicle. That’s to give a little play room for haggling and such. A “special” is often the full asking price.

The longer you stay at a dealership, the lower the numbers will go. If they let you leave, then you can be sure that was their lowest price.

3. DON’T BUY A LEMON

Most dealerships don’t know the full history or condition of their used cars. When they tell you, “It has never been off-road,” the truth is, they really don’t know whether it has or hasn’t.

If something is wrong with a car, they will often try to cover it up. For example, if a vehicle’s air conditioner isn’t working, a dealer may roll down the windows and take your mind away from the A/C problem. Sometimes mechanics add refrigerant to a leaky air conditioner before a test drive, called “juicing the A/C.” After a few days, the A/C will stop working, but by then you will already be in possession of the car.

Before you buy, get the VIN number off the vehicle and get a Carfax report on it. The report will show you the car’s history as well as any damages or a salvage title it may have. This report can save you from tons of pains in the future!

4. PAYMENTS

Salesmen will lie to customers about their credit ratings. They will tell them they have a lower score, and that way they get hit with a higher interest rate. My husband has a credit score of excellent and when he bought his used SUV, the finance department told him his score was “ok” and gave him an interest rate of 10%. At the time we were unaware of dealer scams and figured they were correct on his score.

Don’t fall into the long-term loan trap either. Usually, by choosing a longer-term loan, your payments will be lower, but the interest rate will be higher. In the end, the price will come out being much more than if you had financed it for a shorter length with a lower interest rate.

Let’s take a $10,000 car for instance. If you finance it for 36 months at 5.5% interest, your payments will be $301.96. That makes your total car purchase $10,870. On the other hand, if you finance your used car for 60 months, your interest rate will be higher. Take a look at your bank’s rates, you will see that it’s always higher. Let’s use 6.25% in this example. Your payments will be $194.49. That makes your total car purchase $11,669.

5. BE PREPARED

Walk into the dealership prepared. Research your vehicle online and get the facts. Print them out and bring them with you. You will be less likely manipulated and lied to.

KBB.com and NADA.com are excellent places to find a trade-in value as well as a retail values on a used car. Bring your credit score with you as well. This way the finance department can’t lie to you, like they did to us.

Check with your personal bank to get their used car rates before accepting the dealer’s bank. Try some online calculators and tinker with payments. I personally use the loan calculator at my bank’s website, but there are tons more online.

Buying a car can be a difficult sales process. Chances are you will have to deal with well-trained salesmen that are going to have solid plans of action. They will meet you outside as soon as you step out of your car and manipulate you into buying. Then, once inside to haggle, they will ultimately control how much you spend. If you come prepared, though, things will be a lot less tedious and stressful.

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