You now know how to research the realistic worth of your trade-in. You have all the information at your fingertips that you need. In this chapter you will learn the other factors that will help you be successful when you go the dealer’s showroom.

1. BRING A BACKUP.

It is always a good idea to bring someone who can help you. If you are inexperienced and/or have a gentle personality, bring a strong spouse or someone else who will pull you out of a tricky situation, if necessary. You should have someone with you whose job it is to make sure things do not follow the salesperson's plan.

A car salesperson works on the theory of limited authority. From his position of limited authority, the salesperson verbally agrees to any kind of deal you want. He does this in order to find out what you can really afford. Later, he claims not to have the authority to finalize the deal. Then his manager reworks the arrangement and demands more money from you.

Each time you have to negotiate with a manager or a new salesperson, you start from a more vulnerable position than the last, and in the process lose more control. It works to your advantage if the salesperson feels you can’t make the final decision. It is also helpful to have someone with you to distract the salesperson and relieve the pressure when “teams” of experienced sales staff push you to make decisions.

2. BRING A PAD OF PAPER AND TWO TYPES OF PENS.

These are necessary so you can write notes with a fine-tip pen and write major agreement items (such as the trade-in price) with a giant magic marker so the salesperson will see them. Anything written down has more significance than the spoken word. Verbal “agreements” can later be misinterpreted or forgotten. An agreed-upon price or figure carries much more weight if it is in print. If the salesperson has a casual attitude toward his claims and prices and a talent for making figures appear and disappear at will, writing down the figures makes his words more permanent. If he then gives you a variety of prices for your trade-in, you can quote (and point to) the highest when it is suitable. If you feel comfortable, show the numbers to him as you go along, ask for a verbal confirmation, and then ask him to initial the figures. His initialing of the figures does not bind him to them, but it does force him to stick with those figures in your discussions. This prevents him from confusing you by throwing around numbers at will.

3. HIDE YOUR HOMEWORK

Keep your homework results and figures out of sight until needed, so the salesperson does not find out which figures you will settle for.

4. HIDE YOUR REFERENCE BOOKS AND PAPERS

Treat reference books and papers as you would your homework – keep it out of sight, but handy.

5. CARRY YOUR CALCULATOR

Use your calculator whenever the salesperson is working with figures. Don’t blindly accept what he tells you. Do the math for the salesperson if you can, and use your calculator to do the figuring. Don’t try to do mental math. If you do the calculations yourself, it will take away the salesperson’s ability to confuse you by hurtling throngs of numbers at you. But be careful that you don’t get too distracted with the numbers that it keeps you from doing your real job – namely, getting the best deal for yourself. It is a common tactic for a salesperson to give an interested buyer something to do so he doesn't focus on whether the deal is a good one or not.

6. INTEREST AND PAYMENT TABLES

At the end of the buy, after the trade-in has been worked out, the new car price agreed upon, and the financing arrangements determined, pull out your interest and payment tables and double-check the figures presented to you. It will give you great confidence to be able to check the dealer’s calculations of monthly payments, and increases your level of confidence in the negotiations. You can then be sure that the figures provided for the payments are accurate. The finance person knows that if he tries to change the numbers in the end, you will catch the changes.

7. PAYMENT OF FINANCING VERIFICATION FROM YOUR LENDER

It is to your advantage to provide your own financing. If you have secured your own financing, have all the paperwork ready to show at the appropriate time. You lose a lot of negotiating power if you need to promise to return the next day with a loan confirmation. If you come into the dealership with an approved low-interest loan, you can probably convince the dealer to reduce his rate.

8. PROVIDE PROOF OF INSURANCE

In many states you must have insurance to drive. Make sure you bring the details of your auto insurance policy. An insurance card will be fine.

9. A CLEAN TRADE-IN

A potential trade-in should be as clean as possible. Be organized and remove all personal papers. Repair records and items important to the sale of the trade-in vehicle should be left in the glove compartment, but nothing else should be in the car. When dealers put cars out for sale in their lots, they “detail” the inside and outside of the vehicles and in many cases steam clean the engines to make them look better to customers. If the dealer is your customer for the trade-in, you should do the same thing to secure a good price for your vehicle. Your intention should be to leave your old car at the dealership and to drive away in a new car., It is important that it be ready for them to put on the lot “as is.” This will increase your bargaining power on a price for the trade-in.

10. BRING DOCUMENTATION OF DEBT

If you owe money on your vehicle, bring documentation showing the exact amount of money left on your loan. If you already paid your vehicle loan, bring verification. This can be found on the title. The lien holder is required to sign off on your title once the debt is fulfilled.

11. HAVE ALL THE KEYS TO YOUR CAR

Give one set of keys to the dealer’s used-car evaluator, but keep one set with you until the transaction is complete. This way if the deal goes sour, you can still drive off in your trade-in and not be held hostage by the dealer’s staff.

12. DON'T FORGET THE TITLE FOR YOUR TRADE-IN

Bring the title for at least two reasons: first, to prove that your car is paid, and second, to confirm that the title is a normal title and not a “limited” title, such as a salvage title. The value of a vehicle can drop dramatically if the car has a salvage title. In states that have salvage titles, they indicate that the car has been “scrapped” (for reasons such as a road accident), and then rebuilt and the title reactivated. A vehicle with a salvage title may run well, but its perceived value and its resale value are substantially lower.

13. INCLUDE THE SERVICE RECORDS

Nothing sells a car like a verifiable history of good service. This is especially important for the more expensive, luxury cars, but it is also important for the less expensive models.

14. DRESS TO IMPRESS

Wear comfortable, presentable clothing. You may have to sit at the dealership for several hours, and you need to give an impression of being a serious buyer. Tight clothing will make you uncomfortable, and ripped or torn clothing will not win you a better price on your car, nor any sympathy – but it may get you a higher interest rate on your financing. Make sure you can stand, sit, and negotiate in your clothes without being embarrassed or uncomfortable.

Dressing well will make you look prosperous. You want to look as though you can afford to buy a car. People usually fare better if they look as if they are well educated and can afford the vehicle. Also, your time typically spent in negotiation will drop if you appear professional, competent and confident. Stay away from risqué necklines or distracting outfits. You can’t be tough if you don’t look tough. Keep the issues on the car, not on any other topic. The typical car salesperson may be influenced by style, fashion or skin exposure, but in most cases, business will always be foremost.

15. THE BEST CAR-BUYING ATTITUDE

Always enter the showroom with certain attitudes firmly entrenched. Your body language should match your clothing and the thoroughness of your research. You must be clear in your mind that you will buy a car today, if the price is right and if you are treated well both personally and financially.

Remember that you are the customer. The dealership must sell the car. You, however, can always live without the car a little longer. Do not allow yourself to feel pressured. The salesperson may be desperate for the sale, but you are not. If it helps, bring along someone who can assist with your unwavering confidence. Don't feel like you can pull it off? Here are some pointers:

• Clear your mind of all extraneous details. Don’t go to buy a car with a head full of troubles. Once you enter the showroom, the purchase should be your first and only priority.
• Remember that since your financing is already established, you don't need to worry about how to pay for your new car. This will give you confidence and will prevent you from being held up by later in the deal with financing problems. This is why it is so crucial to secure your financing before you visit a showroom.
• Limit the negotiations to one car or two at the most. The salesperson will view you as a browser if you try to negotiate in general rather in specifics.
• It’s your money. You are the customer. Your money can easily be spent at another dealership or on other things. If the dealer wants your money, let him work hard for it.
• Demand good treatment. A lack of warmth and some reserve will keep a distance between them and you, which is what you want. Most salespeople believe that if you like them, they will have more success making the sale. They will go out of their way to make you like them in order to facilitate closing a deal. Don’t give them the edge. Keep them at enough of a distance so that friendship does not become a factor.

16. HOW TO ACT

Don’t be emotional. Be neutral. Don’t gush about how much you adore a car. If you do, you will probably pay more for it. Don’t be too negative either. This only makes the salesperson defensive, and he may assume that you are not ready to buy. Having a negative attitude will not earn you respect or a cheaper price. Nor will it make you look like a sincere buyer. Be cool and a little unpredictable. If you feel you are being treated badly or not taken seriously, be firm and let them know about it. Don’t be afraid to speak up. Be ready to deal if the price and everything else is favorable.

Salespeople are trained to determine within the first few minutes what type of a customer you are. Once this is settled in their minds, they choose a game plan to follow in order to handle you to the best of their advantage. It is to your advantage to turn the tables and show them that their strategy will not work. They have to rethink their approach at the last minute and figure out how to backtrack on all the things they told you previously to convince you to buy a car.

Tell the salesperson only what he needs to know. He will probe you for information about your job, why you want to buy a car and your financial situation. Tell him only what you want him to know when you want him to know it. Always remember that everything he learns may be used against you. A salesperson is not your friend.

A savvy salesperson pays attention to even your most casual comments, so reveal only what you want the dealer to hear - no more, no less. When in doubt, say nothing.

If it helps, play dumb. You don’t have to be a nuclear scientist to succeed in this negotiation. When the salesperson attempts to classify you when you first meet or take a test drive, it's alright to appear a little confused, uncertain or weak. When hit with technical or sales mumbo-jumbo you don’t understand, saying “I don’t know” will throw him off guard. Later, when it is too late for him to change his tactics and attitude, show him you are in control. Explain to the salesperson that, “This deal is not good enough,” which may force him to offer concessions. If he is scrambling to make a deal, he may throw in things you never considered to keep the discussion going. Consider asking for a better price or something more specific.

When you near an agreement, consider saying "No" one more time to see what happens. You never know. Something else might fall into your lap, especially if it is late in the evening.

17. WHAT NOT TO DO, AND WHOM NOT TO BRING

Below is a list of don’ts:

• Do not bring anyone who won’t be able to help you. If your companion only tagged along to help choose the color or style, send him or her away before the negotiations begin. Try to avoid distractions. This means that your children are best left at home.
• Do not bring your money source if he or she cannot assist in the purchase negotiations. This may be difficult, but if the person came along merely to see how you are spending the money, it may be in your best interest not to have that person around.
• Do not impede yourself with a time limit. You must have the freedom to "wait out" the salespeople, or to walk out of the dealership without any drawbacks. If you desperate to buy a car in order to drive to work by a certain time, you probably won’t get the best deal. The best strategy is to force the dealership under the time limit. Purchase your vehicle late in the evening, when the sales force longs to go home.
• Do not bring any sort of fear or apprehension. If you have done your homework, you have no reason to be anxious. You will feel more than ready for whatever happens.

18. TOTAL IMAGE