Dirty Secrets Car Salesmen Wont Tell You - Why the Auto Industry is on its knees
Just to state firstly, not all car salesmen are crooked, and this article only aims to help you avoid the pitfalls of dirty car salesmen. As such, by turning you away from these fraudsters I also aim to help the decent car salesmen out there. By sending them away from the bad guys, the good guys will be receiving business and the consumer also wins.
Below you will also find a list of traits that help you find a good car dealership and determine if he or she is trustworthy.
1. Why Can't You Sell Your Car Privately?
There are many small reasons that make it difficult to sell your car privately, but one of them is well overlooked. That main reason is, that car dealerships don't want you to sell your car privately. I recently received confessions from no less than 3 car salesmen after I started a conversation with them and lured them into a false sense of security. And here are just some of the tactics they employ to prevent the average person from selling his or her car.
They spend much of their day on craigslist and other websites, making low ball offers for cars to disgruntle and confuse private sellers. This leads the private seller to believe that they may not be able to sell their car at the price they had imagined. The car salesman wins either way you see, because if you can't sell it, you bring it in to trade it in and receive less than its worth. Meanwhile, the prospective buyer of your vehicle will also be visiting a showroom near them to purchase a vehicle.
If you do sell them your vehicle when they respond to your advertisement, "well they just got themselves a steal"
2. Your Credit. They will check it and hurt your credit score!!
What inspired me to investigate this industry a little was what happened to me recently. I took all the precautions in the world. I was pre approved at my financial institution of choice and when it came time to buy the car, I made them assure me no less than 10 times that they would not pull my credit. Long story short, they did and they lied until I checked with Transunion directly. I was a fool and handed over my social security number when they told me they needed it to go to the bank and confirm my loan approval.
You may find this hard to believe but they fought me on this until my attorney sent them a letter. NEVER, and I repeat, never give them your social security number and never do your finances through the dealership. They receive commission for getting you a loan and some dealerships will lie about using your pre approval, and yet they are really reapplying for you through their dealership. The risks are just too high!
To the disgruntled car salemen who say I am a liar, I have received proof from the dealership that they "made a mistake". I had to first quote my rights under the fair credit reporting act, after they refused to apologize or write me a letter to have their inquiry taken off my report more than once. They also lied to my wife and told her that it was a soft inquiry. They even went so far as to assure us that if we called Transunion, they would tell us so.
Has a car dealership ever checked your credit without your permission?
3. They Get Commission For More Than You Know
They gain commission for more than you know. Heck, the guy I dealt with on my latest purchase even lied to my face about getting commission for selling the vehicle. I know he does as I know someone who used to work there.
They also get commission for those "Add on" warranties that rip you off. They get commission for extras on a new vehicle, and they get commission for getting you approved for a loan.
4. Extended Warranties and GAP
Not only does the salesman get a bucket of commission for these extended warranties, he will also tell you anything he needs to, in order to have you sign on the dotted line. Now I admit that in some circumstances, GAP insurance may be usable, but put simply, the rest of these offers wouldn't be offered if they were not profitable for the seller.
Don't buy them no matter how annoying or convincing the salesperson is. They never save you money and the seller is not a good guy who is there to help you. He is there to make money off of you.
Do you purchase the extended oil change/ car wash warranty?
5. Your old car
If you drive into the dealership in an older vehicle, don't expect the salesmen to line up all at once. Notice how they ask you if you drive a decent vehicle, if it will be your trade in. They want your used car and they want you to trade it in for peanuts.
If on the other hand, your used car is not worth their time, they will judge you off of it and will presume that you are not worth their time.
A Trustworthy Car Salesman Will....
1. Not force you to sign for a warranty if you say no once.
2. Tell you what to watch out for in cars and will tell you afew things wrong with a vehicle. If he states that there is NO downside to a vehicle he is a liar. There is always a con or two. A good salesman will tell you something bad or awkward to prepare you, for example, "its gas mileage is so so," or "Lets steer clear of this vehicle because you have kids and I can find you a better, safer vehicle."
3...... be polite when you go to leave his lot, even if you are not buying. Do this as a test. An honest salesman should keep his cool and still have time for you even when you walk away. Just don't waste too much of his time. That's rude and he has a job to do.
4.... not tell you how much the payment should be per month on your loan. This is a nasty tactic. Your finances are none of his business and telling you "its only an extra $20 a month" is not ok.
5.... wait until you are ready. He will not follow you around the lot.
Reward a good salesman and I mean an honest good salesman. Avoid the kind who over sell you, pressure sell you and play games. They make it difficult for the honest guy.
BEFORE GOING TO THE DEALERSHIP
I. Know exactly what you want. Shop online first and be aware of your exact needs.
II. Get pre approved from a bank first.
III. Be Strong and stand up against silly sales tactics. If you wanted the things they are selling you, you would have seen them online.
IV. Remember, they are there to take your money. They are not your friend and they will do whatever it takes to get as much money as possible from you.