Price Any Car: Car Price Guide
   

Tricks of the Trade Revealed

Despite all the information available via electronic media these days, the majority of new and used car purchases are still made irrationally, often on impulse, using gut feeling, and by buying into a dream. Choices are made far too quickly and many of us are forced into making hasty, on the spot decisions.

Get a free valuation from Price Any Car with our free, fast and easy to use service.

So how can you avoid being sucked into the salesman’s lair? What can you do to avoid playing poker with a seasoned pro? Every type of business, of course, has its tricks of the trade. That shouldn’t be regarded as a bad thing, but it will help if you learn a few of them before you dive into the shark-infested sea that is the car dealership. Today’s tricks of the trade are far more subtle than in Arthur Daley’s time, but never ever forget that the dealer or salesperson is only in it for the money.

Getting to know a little about the market before you start viewing cars is vital. Knowledge gained from advance research will give you peace of mind and help you to negotiate a good deal, so make sure you do lots of digging before setting out.

There are four basic rules:

• Information is power.
• The salesperson is not your best friend.
• Everything is up for negotiation.
• Buying a car is an emotionless business transaction.

Break any of these and you’ll already have a losing hand, and will have to rely on bluff from the first minute. Luck won’t come into it.

Salesmen just love people who don’t or won’t negotiate. Most are paid on commission so need to get sales to make a living. Like their hunter-gatherer forbearers, they will try almost any method, including baffling you with jargon or using psychological tactics such as ‘my wife/mother/daughter drives one of these’, suggesting that if it’s good enough for them it’s be good enough for you.

But let’s look at some of the background. Dealers regularly use loss-leader advertising, limited period offers, and time of the month. A car is advertised at a knock down price but when you enquire, shock horror, it is sold – they have another similar one but at a higher price. There is nothing like a sold sign to create a heightened level of urgency! You may be offered a discount or incentive, but only if you commit to buy straight away. The sales-person will tell you that you are lucky to arrive at a certain time of the month as they have a special deal available. Don’t buy any of it, as they most likely have similar deals every day.

Professional sales people will also use high-pressure tactics to close the sale. He or she will try to become your new best friend. Amazingly they will almost certainly have things in common with you and your family. They will have a finance deal that looks fantastic at first viewing and they will appeal to your partner or children on the test drive. Don’t fall for one bit of it.

Dealers also like to try to sell you finance. The deals they offer you may well be very good, but always bear in mind that a dealer can make as much, or even more, out of the finance commission as they will out of the car. Make sure you shop around.

Let’s look at your homework. Be prepared to spend a day or two investigating and planning your assault. Firstly, be sure about what you want to buy and, just as importantly, what you don’t want to buy. This will enable you to be absolutely specific about your needs when starting your search.

Secondly, know much you want to spend, and always do this in pound notes rather than monthly payments.

Thirdly, know your values. Be aware of the true value of the car you intend to buy and if you have a part exchange, how much that is worth too. You may also wish to investigate running costs (mpg, average service costs, road fund licence cost), and likely depreciation costs.

The most important value, whichever methods you use to buy and sell, is the total cost of change, or the price to switch: the difference between the purchase price and the sale price of your existing car. This is important as many dealers will over-inflate a part exchange value, some by as much as £2,000 or £3,000.

So you’ve agreed to buy the car but have you checked out the vehicle condition? Or have you just taken the vendor’s word? They may have indicated that it’s gone through their 50 or 100 point checklist, but before parting with your cash it is up to you to verify the details. The Retail Motor Federation recommends that you use an inspection checklist. As a minimum it should include bodywork (including underneath), tyres, paintwork, locks, rubber seals, wipers, seatbelts, carpets, milometer and instruments. Never buy a car with a lit warning light unless you know what you’re doing.

You should also carry out an independent vehicle history check, particularly if you are buying privately. These are inexpensive and can potentially save you a fortune. For some cars you can also check the mileage. It seems like a lot of work, and the salesperson may tut, but stick to your guns. If he has nothing to hide, what’s the problem?

If you’re still unsure whether to deal, there are still a couple of tricks up the dealer’s sleeve. Firstly there is the lapdog trick – where they tell you they will match anybody else’s offer, so you’ll most likely feel obliged to go back. Or how about puppy dogging – where they suggest you take the car home overnight, allowing you time to fall in love with it as well as creating a sense of obligation. It’s all quite sophisticated but certainly not new. These sales techniques have been going on for centuries in different guises.

Before you sign on the dotted line, the salesperson has yet one more surprise. As you are now a special customer they’ll be able to offer you add-ons at a special rate. These may include gap insurance, extended warranties, alternate finance and extras such as mats. If these weren’t in your original plan, just say no.

A professional in any field will always have the upper hand, but doing your homework, taking your time and following the four rules will even up the game. Sounds easy, but most of us remain happy just to wing it.

Next: Choosing a Car