The Good, the Bad, and the Ugly : Used car salesman stereotype you must be aware of


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Used car salesman stereotype you must be aware of

Not all used car dealers are created equal.

Every individual, including every salesperson, is unique in their own way. Some people have a strong connection with the majority of people, while others struggle to form strong bonds with anyone. (and are not very successful in terms of sales either.) 

I am a successful salesperson who has worked for both Mercedes-Benz and Ford. 

Sometimes the same person who owns a Benz also owns a Ford or trades in a Ford for the luxury of a Benz. 

Another possibility is that the person has more than one luxury vehicle. or gives up their Benz in exchange for the dependability and fuel efficiency of a Ford. 

Customers of luxury cars come from a variety of backgrounds; some were born into wealth, while others have recently come into it. 

Some people buy them as a public display of their wealth, while others may do so because the possession of such a car is more important to them than any other aspect of their way of life. 

When I was younger, I sold a Mercedes S-Class to a coal miner. They make a good living, by the way, as evidenced by the fact that this was his second Benz.

If you are not successful at selling Benzs, you won’t be successful at selling Fords, and if you are not successful at selling Fords, you shouldn’t take a position at the Lamborghini dealer because you won’t be successful there either.

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There’s a good reason why people have a negative perception of people who sell cars. The majority of the preconceived notions that car salespeople are smooth-talking, fast-talking fast-talkers who play games with customers in an effort to separate them from their money are true. 

This is due to the fact that the majority of a car salesman’s income comes from commissions earned from the sale of vehicles. The fewer automobiles they sell, the lower their revenue will be.

 In addition to this, they are facing a significant amount of competition to sell the cars that are currently stocked on their lot. 

It is part of the job description to downplay any problems that may exist with the vehicles, encourage customers to purchase pricey upgrades and extended warranties, and try to persuade customers that a payment plan that extends over a longer period of time is in everyone’s best interest. 

With just a little bit of education, customers are able to protect themselves against the strategies employed by salesmen. 

Here are ten strategies used by car salesmen to get the better of unsuspecting members of the public.

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5 Startegies Used car salesmen use

1. False Advertising

Advertising is one of the primary methods that car salesmen use to bring customers into their dealership. 

You might hear rumours of a fantastic clearance price on a model of car from the previous year that needs to be sold right away, or you might hear rumours of low prices on brand new models that have just arrived from the manufacturer. 

When you arrive at the car dealership, the salesperson informs you that the vehicle you have been hearing about on the radio or reading about in the local newspaper is no longer available. 

However, there is no need for concern because the salespeople would be more than happy to show you other models of cars that they have available on the lot, all of which are a significant amount more expensive. 

This strategy is referred to as the “bait and switch” in the world of sales. When the customer arrives, they are informed that the advertised car is not available and they are directed to a ride that costs more money. 

This tactic is used to lure customers in with an incentive such as a low price on a specific vehicle. This is a particularly condescending approach to the sales process.

2.Paying Close Attention to Monthly Payments As Opposed to the Actual Cost of a Car

You are not going to purchase this vehicle for $40,000. It costs you $400 per month to maintain it. 

This is the way that people who sell cars want you to think about the next time you buy a car. 

Don’t worry about whether or not you can come up with $50,000 in cash. Just take a moment to consider whether or not you can put aside $550 every month. 

It is surprising how effective a psychological strategy like this one can be in sales, and salespeople use strategies like this all the time. You might hear someone say something along the lines of “If I could get you into this car for $550 a month, would that work for you?” 

Naturally, that would be the case. However, you are not taking into consideration the length of the payment plan, the interest rate that you will be charged, or the total amount of money that you will have spent by the time the vehicle has been paid off. 

The reality is that a salesperson for a car dealership can secure for you any monthly payment that you desire. 

All that is required of them is to make the loan for the automobile longer and to increase the interest rate. 

You will, in the end, wind up paying exactly what the car dealership hoped you would pay from the beginning, which is exactly what they had anticipated you would pay.

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3.Attempting to Sell Your Current Car for Less Than It’s Worth on the Trade-In Market

One of the more blatant strategies utilised by people who sell cars is this one. Nevertheless, it is still widely used in virtually every context. 

To get the ball rolling, a car salesman will present you with an absurdly low value for the vehicle you currently own and are interested in trading in or selling. 

This is what I like to call the “sucker test.” The salesman, in essence, wants to determine whether or not you are a fool who will fall for his bait and make a purchase from him. 

TRADE-IN TRICK : You give your keys to them so they can check out your trade-in. You might have a tough time getting those keys back! The longer they hold you captive, the more likely they can press you to buy something.

However, if you keep talking and negotiating with the salesman, he will eventually, albeit gradually, increase the amount of money that he is willing to pay you for your used vehicle. 

When this takes place, you get the impression that you are winning the negotiation and obtaining a higher price and greater value for your vehicle. 

However, because the salesman began with such a poor offer on your existing vehicle, you are still getting taken advantage of financially. You leave the lot thinking that you sold your used car for $5,000, but in reality, you should have gotten $8,500 for it. 

Do yourself a favour and sell your current vehicle on your own through a private sale. Then, take the money you made from the sale to a dealership for the purchase of your next vehicle so that you can get a better deal.

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4.Keeping your Credit card at the Back-office all through Negotiation

The car salesman asking for a credit card upfront is the ultimate psychological ploy. 

They take your credit card and don’t return and  throughout the negotiation, they hold it. 

You need to buy a car to pay off your credit card. Your credit card makes you curious. You’re held captive on purpose. 

The salesperson wants you to feel trapped and negotiate. Salespeople increase pressure by taking credit cards. You often feel like you’ve bought the car. How much cash? 

Never give your credit card to anyone. You’re not required to give a car salesman your credit card. 

Third, a car dealership can’t charge anything to your credit card without your permission or refuse to return it if you ask. 

Unwind! You have more negotiating power than you think. Remember, “no” is the strongest word.

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5. Adding Additional Fees for Components That Are Considered Standard

Every salesperson for a motor vehicle will make an effort to persuade you to purchase optional accessories that come at an additional cost. If you want heated seats, a trailer hitch and towing package, and a DVD player, they will ask for additional payment from you. 

But what will happen if you refuse to pay for any add-ons and instead opt for a vehicle that has only the standard features? 

When you buy a car, the salesman will frequently attempt to upsell you on optional extras that are supposed to be included as standard equipment. 

Although it may sound ridiculous, many people who have purchased automobiles have been charged additional fees for accessories such as floor mats and head rests. 

The majority of salespeople will simply tack these costs onto the customer’s bill of sale without even informing them of their existence. 

Because of this, you should make it a habit to read the sales documents very carefully and squint to make out the fine print. You might be surprised to learn about some of the charges that are concealed on a bill.

Pay Close Attention to this!

1.If a dealership offers to pull the vehicle in front of you, it’s because they don’t want you to see what’s underneath.(for Example: oil droplets) (or for Example: emits white smoke upon ignition) (Ex: funky found upon starting) (like for Example: Clearing a code or the check engine light)

2.When a dealership evaluates your vehicle as a trade-in, they will exaggerate and fabricate problems in order to determine how much it will cost to “retail-prepare” it. To justify their lowball trade proposal.

3.Financing. If you have a high credit score but a factor that would result in a denial (e.g., too many auto loans) (e.g., a debt-to-income ratio of more than 50 percent), they will lie to the bank and input a fictitious income or employment status in order to obtain approval. 

This may not matter to you, but 99 percent of the time it goes unnoticed.

3.When asked where the vehicle was purchased, they will lie. They will fabricate a “exclusive” agreement with or act as if it were a Green Light Auction. The majority of dealerships never inspect, touch, or smell the vehicles they purchase at auction.

4.The majority of dealerships will clear pending codes. The vehicle codes can only be read by an OBD device, as automobiles contain vast amounts of information. 

Not the diminutive OBD device that only clears, reads, and checks for monitors. I am referring to the expensive scanners that provide comprehensive information about a vehicle.

5.Be wary of the smog certificate if you’re interested in purchasing a supercharged or highly modified vehicle. Dealerships are the conduit for illegal smog emissions. whether from the smog shop/technicians to a DMV employee. 

6.Dealerships will purchase vehicles only to discover that they do not pass smog. Therefore, they must do what is necessary.
This is not a secret, but rather a confirmation. They intend to harm you. You should be upsold GAP and extended warranties. Even the “nicest” salesperson doesn’t care about you on a deep level. They have responsibilities.

7.Discussing GAP insurance. Credit unions offer the lowest rates because they are not motivated by profit. If a dealership offers you GAP coverage for between $799 and $995, know that they are profiting substantially. They cost $100 to $150. Indeed, contemplate that. Theft prevention… no, I’ll pass on that.

They would like you to believe there are additional buyers. They would like you to believe that the item will sell quickly. They would like you to believe that their price is the lowest. Don’t believe it.

8.A pre-purchase inspection is the best course of action. They will attempt to recommend stores they are familiar with while acting as if they have never dealt with them before. I’ve actually had people choose…paid-off shops on their own.

 I do not suggest a pre-purchase inspection from anyone in close proximity.Drive the vehicle and test drive it again the following day. The following day, test-drive it again. Ensure the same functionality as before. They want you to test-drive it once and then purchase it.

9.They will lie about how long they have had the vehicle in order to make the inventory sound new. New sounds are superior to old ones. There are websites that track how long a person has owned a vehicle. If they advertise on those websites (such as CarGurus), evaluate them. Ask how long they’ve owned the car to determine if they’re lying.

10.They will lie about their inability to offer discounts when it comes to financing. They attribute it to a false explanation: “The banks charge us a fee to help you obtain a loan.” 

This is true for those with poor credit, but if you have good credit and they tell you this, they are lying.
If they increase the price of a financing arrangement to “cover their fee,” this is illegal. 

Automobiles cannot be sold for more than their advertised price.  You will earn more money by recording and suing them as opposed to allowing them to steal your vehicle.

Most locations have a markup of $2,000. Observe the price history to determine how much a dealer has reduced their prices. No dealership will sell a vehicle at a loss-making price. 

Beware of the words “No problem” & Horrid Call back!!

After assisting countless consumers with bad car deals, I can tell you what unethical salespeople do MOST OFTEN! It can be summarised as follows: “No problem!” The entire scheme can be summed up as “No problem!” followed by THE HORRIBLE CALL BACK.

Here is how it operates:

You desire a modest down payment? NO PROBLEM!
Want a low rate of interest? NO PROBLEM!
You desire a particular car payment? NO PROBLEM!
Want maximum value for your trade? NO PROBLEM!
Want specific alternatives? NO PROBLEM!

They document everything and send you on your way… THEN… THE DREADED RETURN CALL! 

This is where they explain that they are unable to obtain the payment, interest, payment, value, or options! And you are required to either ACCEPT IT OR RETURN THE CAR.

HOWEVER… you have a contract! CAREFULLY INSPECT… it is NOT a contract. It is an offer to obtain a contract or a “cash deal” with an outstanding balance and a promise to “help you find financing.” BUT IT IS RARELY A FIRM CONTRACT WITH DETAILED TERMS AND CONDITIONS!

NOW … TO ADD INSULT TO HARMFULNESS… If you reject their offer of a higher price, a lower trade value, or something else unfavourable… 

You must return the car AND PAY FOR ITS USE: a certain amount per day and per mile.

Did you know that in some instances, dealers actually earn more money by repeatedly “tripping” cars than by making a single sale?

Final Thoughts

Having said that, locating a trustworthy dealership is one of the most important aspects of having a positive experience when purchasing a car, whether it be new or used. 

When you buy something brand new, you get the added benefit of being covered by the manufacturer’s warranty, which will give you peace of mind and confidence in your purchase. 

When purchasing a used item, however, you are placing your trust not only in the credibility of the salesperson but also in the information and warranty coverage that they provide.

Buyers in today’s market have the additional benefit of visibility, which is made possible by resources such as Vehicle History Reports and other types of online research. 

Because of this, it is even more essential to do research on any vehicle that you are considering purchasing and to enlist the assistance of an individual who is knowledgeable in the automotive industry in order to inspect the vehicle (if you yourself are not capable, or comfortable doing so yourself).

Having said that, it is essential to keep in mind that the automotive industry is comprised of a large number of trustworthy dealerships that are enthusiastic about forming relationships with the cherished clients they serve. You are not the target of everyone’s animosity, and…

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