Everything you ever wanted to ask your car dealer but were afraid to ask

Being a car sales person really takes the anxiety off of buying a car because sales people have done it so many times that the process is easy.  However, as a customer who only buys a vehicle every 2-10 years, it can seem intimidating since cars change.

Should I tell the salesperson my monthly payment budget?  Absolutely.  Your salesperson will work hard trying to get the right vehicle for you with your budget in mind because he/she wants to make you to be pleased with their products and services.  You may be asked if you would consider leasing since lease payments are much lower than purchases, and you may be able to afford a higher priced vehicle for your monthly payment.

What if my credit isn’t so great?  Dealerships pride themselves on shopping rates for you.  You may hear “I can match/beat that rate.”  Banks love to work with dealerships because we send them a lot of business.  However, discuss any credit issues up front with your salesperson because your qualified rate and down payment determines your payment.

Can I get a sales price lower than the MSRP?  Usually.  Dealerships are regulated by the auto manufacturer to sell all new vehicles at MSRP.  Manufacturers offer monthly “incentives” or “rebates” to help you find your favorite vehicle at a great price.  New vehicles that are very popular sellers do not usually have a lot of incentive cash available.  Vehicle types overstocked in that region may give better incentives.  Having access to manufacturer employee and supplier discounts helps as well.

Is the used vehicle history a big secret?  No. As an informed customer, you can look up the VIN for vehicle information on vehicle history websites and find out if the car was in any accidents and how often it received professional maintenance.  If requested, many dealerships will show you the vehicle history search that they did when they took it in on trade.

Will I get a low offer on my trade vehicle?  Your best bet is to check online trade evaluation websites that take into account how and what vehicles sell well in your area.  Many of the book websites do not do this. Market dictates value of a car, not the dealers.  Market considerations include what new cars have for incentives, leasing specials, time of the year and how many similar vehicles are in the immediate area. For instance, your AWD (all-wheel drive) trade may have a higher trade value in upper Michigan where demand is great versus places without heavy snow such as Columbus, Ohio.  Is your vehicle so high in supply that demand will be low? Does the vehicle brand and type hold its value? Accidents found during a dealer check will devalue the vehicle even if the car was repaired professionally, so be aware that the dealership will see these reports.  

How do I understand those ads that seem too good to be true?  Those are real prices, but they are confusing.  Ads are usually base models using lease prices that include manufacturer employee discount (often 4% off MSRP), brand loyalty bonuses, monthly initiatives, low mileage, 24-month lease terms and excellent credit scores.  The advertised price will not include state taxes (6% for Michigan), documentation fees, bank fees, title or plate fees.  The fine print will always include a statement in this regard.

Don’t be afraid to ask questions.  There are no dumb questions, and if a good salesperson does not know the answer, he/she will tell you that they don’t know but will find an accurate answer for you.  Your questions are lessons learned for salespeople because all sales are not the same.  I often hear “what would a lease payment be on this car?”  Leases are not easily calculated like purchases.  Lease payments are based on each individual vehicle, term, residual, interest rate, credit, down payment, incentives, discount pricing and mileage.  Therefore, sales people cannot figure this this matrix in their heads.

Sales people make their living on commissions, so good, responsible sales people want you to love the car and like their services so that you will be a repeat customer.

Make your car shopping experience exciting!  Be informed before you walk into the dealership and many of your questions may have already been answered so you can enjoy looking at new, fascinating vehicles.

Ruth Berklich is a freelance journalist and a sales person for Golling Buick GMC, Lake Orion.  www.gollingbg.net.  She can be reached at (248) 693-5900 or rberklich@gollingbg.com