I was drawn to automobile sales by my love for sporty cars from a young age, which may be why I was able to convey discernable enthusiasm for the vehicles with customers, which can be contagious and help turn them into buyers. I was brought up to always do the right thing – to never take advantage of anyone. The automobile business, like any other business, has the goal of maximizing profit for every sale, and consumers’ best interests are not necessarily in the equation. In most cases, the gross profit in a deal is directly affected by the negotiating skills of the buyer. The better prepared and skilled negotiator is going to get a better deal. 

From my 50+ years of experience, I can say that very few consumers come into the showroom prepared to negotiate from a position of strength, having done their due diligence and research, including price comparisons, and this is perfectly understandable. The average automobile buyer will have about 10 cars in their lifetime, so they’re in the car market approximately once every 6 years. When the time comes, they’ll look around on the internet to get an idea of what they like, and rough price ranges. They may start shopping for a particular model online and contact a dealer when they see something that catches their eye. That initial contact is programmed to get them into the showroom, and now they’re at the mercy of a salesperson who spends 8 hours a day negotiating as their livelihood, and very likely has weekly sales training designed to help them get the customer to say “yes” and make the sale. That’s their only job!  

Well, for most of my career, I was usually the middleman between management and the consumer. I can honestly say I always had my customers’ interests at heart and did my best to get them a “fair deal.” The “great deals” were few and far between because there was no “handbook” on how to prepare for and negotiate a great car deal for the average car shopper. As soon as I retired, I wrote “Car Deal Secrets” to give everyone the opportunity to learn what to expect, and how to prepare, so when they walk into a car dealership they can confidently negotiate their own “great deal”. I no longer have to find the middle ground to keep both management and my customers happy; now the pendulum can swing towards the buyer, and they can have as much, if not more, bargaining power than the dealers.

It happens infrequently, but probably more often than one would imagine when you consider the total gross profit in the deal, including the “back end”, which includes your finance and after-sales department, because the vast majority of shoppers haven’t done their homework and are unprepared when they enter the dealership. The dealer can only lower a price quote when negotiating with a customer, so the salesperson will start with the highest number they feel they can substantiate. If, from the start, the salesperson knows the buyer has done his research on vehicles and pricing, they’ll probably begin the negotiation at a lower number, giving the educated consumer the edge right out of the gate. The negotiating skills and insider tips I share can lower the buying price by hundreds, even thousands, as the dealer’s playbook becomes apparent and can be defused. A case in point: with an average loan of $48,000 for 72 months, the buyer can save $2400+ over the term of the loan if they do their homework and find or negotiate a 2% lower interest rate.

This is tough to narrow down to one mistake. Buyers should never assume a nice salesperson is their “friend”. The salesperson’s income is dependent on commissions earned as a percentage of the profit from each sale. They have an obligation to the dealer and themselves to maximize profit and sales for the store. Their job becomes easier when they can gain your trust that they are looking out for your interests. You would like to believe them when they tell you they got you a fantastic deal, the best they’ve seen in ages. Remember what Ronald Reagan said, “Trust but Validate” – you can have the initial belief that the salesperson has the best intentions and is being totally honest, but you owe it to yourself to take the time to verify or confirm the deal they are offering you really is “fantastic”. Don’t worry, if the deal is good today, it’ll be there tomorrow unless it’s the month-end, in which case, a couple of well-placed phone calls to other stores will confirm the deal. Please take heed if you have a salesperson you trust and have done business with in the past. Some salespeople take advantage of the good relationship they have with repeat customers, and assuming, usually rightly so, they won’t shop anywhere else, will charge them more than a new buyer coming in the door, rather than giving them a better deal for their loyalty. Fortunately this is the exception, not the rule, but it only takes a little effort to verify the numbers, and it will confirm your trust and loyalty is reciprocal.

The market price for the vehicle is predicated on supply vs. demand. If a model is in high demand and availability is very limited, it will sell for a premium price, perhaps MSRP or more, regardless of the dealer invoice price. If current inventory of a particular model is much higher than demand, the manufacturer may add incentive programs or money to the dealer, and, in many cases, the consumer is not aware of these incentives, designed to help the dealer sell his existing stock (so he’ll order more from the factory). Now you see how the dealer can sell you the car for the “dealer invoice” price.

I think a tipping point was watching business managers take unfair advantage of single women who came in to purchase a vehicle on their own. The manager would relentlessly pitch after-sales products until they agreed to them, whether they needed them or not. They would be in the office by themselves, unprepared, not knowing what to expect, nobody to consult for an opinion, and getting bombarded with “everybody gets this for their car, you’ll be sorry if you don’t, you have to take it now or it’s too late.” I wished they had either brought someone experienced with them or had done a little research before making a purchase. I made a mental note that when I retired, I’d write an auto sales guide to level the playing field. When I started the book, I decided to turn it into a playbook designed to get the “best deal” possible, not just a “fair deal”. In it, I explain in simple terms just the way I would do it myself, based upon my decades of knowledge and experience.

The last week of every month is filled with sales meetings between management and sales staff, reviewing the monthly sales goals, and what is necessary to meet and exceed these goals. The manufacturer assigns sales objectives for every dealer, and they usually have incentives attached to successfully hitting these numbers. It can affect the amount of cars the dealer can order for the following month, and it may also be tied to a monetary bonus, in most cases, many thousands of dollars. Management will discuss the store’s sales compared with sales data of dealers of the same make, supplied by the manufacturer, in their market area. This is when “the rubber meets the road”, and salespeople are told to call every prospect they had that hasn’t bought a car yet and get them back in the showroom and into a car this month. This is when management tells the staff: ”Bring us every deal. Don’t let anyone walk without us seeing them”. This is the time all bets are off, and the best deals of the month are there for the taking, if you know how to get them.

Good question. Online shopping is a slippery slope for consumers, as dealers have many tactics to make a deal look fantastic just to get the customers in the showroom. Shoppers must know what they’re looking for and be able to ask the right questions to reveal any deception before wasting their time going to the dealer. The good news is that all the information about vehicles is online. The manufacturers’ websites provide all the details, and most of them have a vehicle locator allowing you to check the inventory of your local dealers. Electric cars just lost their federal tax incentives of up to $7500, making that market a little unstable right now, with most manufacturers cutting back production of fully electric vehicles, so we’ll have to see how that market plays out. Trade-in apps and websites that give legitimate quotes and actually purchase used cars are very valuable tools for consumers to use as leverage when discussing their trade-in with the dealer. The book explains how these quotes can be used to the buyer’s advantage, and how the dealer can twist the numbers around.

I wish every consumer knew that the finance department is a core profit center for the dealership, often making more gross profit on a deal than the profit just from the vehicle sale. The finance department is not just there to assist you in getting your lease or loan. It is designed to make the dealership more profitable by arranging the financing (and leasing) and sharing in the loan interest, at the expense of the buyer. I’ll say it again: the book explains how important it is to shop for finance terms and rates before entering a dealership. This way, the customer can negotiate from a position of strength, as thousands of dollars are on the line in each of these financial transactions.

There are more than 700 new makes and models for sale in the U.S., There was no reference tool that could compare them all and narrow down choices based many variables, like type (SUV/Coupe/Sedan/Pickup/Convertible etc), configuration (AWD/4WD/RWD/FWD), equipment (standard and optional), and price range (to fit one’s budget). Vehicle Matchmaster will display all the makes and models that fit the specs, and consumers will be amazed how many vehicles are in their interest zone that they never realized, opening up a whole world of choices. The results show which of the selected features are standard and optional, the selected price range, an illustration of the vehicle (I know looks matter) and even a link to the manufacturer’s website. It can display used cars with the same input, including the years of interest, and the results will also include a link to national used-car websites directing the user right to the model of interest. Wow!

It’s going to be the last day of the month. The salesperson and management won’t let you leave the showroom. You’ll hear: “ What do we have to do to make this deal with you now?” The ball will really be in your court. These are the deals the dealer will grit their teeth, bite the bullet, and actually sell the car at a loss when thousands of dollars of incentive money are on the line. Hopefully, you did your research before this point, and you can recognize this rare opportunity and take advantage of it.

A huge difference with used cars is that every one is unique. They must be treated as such. The vehicle history reports must be scrutinized for accidents, damage, remaining warranty coverage (time and miles), any recurring issues or signs of foul play, and service records checked to confirm proper maintenance. Much like an engineer’s report on a house inspection, after you’ve thoroughly inspected the vehicle and test-driven it, have a trusted mechanic check it out top to bottom. They’ll provide you with the precise vehicle condition, recommended repairs that should be done before you get it, and a list of maintenance and repairs to expect a little down the road, as well as an expert’s view of any previous disclosed or undisclosed damage that should be addressed or may affect the value of the vehicle. This report will go a long way towards helping you at the negotiation stage. Before you sit down to talk price, input the details of the car you’re considering into the trade-in websites to get a value they’d buy it for. This will give you a general idea of what the dealer paid for it so you have an idea of his spread between his cost and asking price. It’s another valuable tool when negotiating the price.

I think 2025 will continue as a buyer’s market. Tariffs are hurting the dealers as the vehicle costs rise sharply. We’re seeing a huge increase in rebates across the new car spectrum, most with the option of either the rebate or cut-rate financing. General availability is good compared to the slower demand right now, with dealers getting aggressive on pricing to move what they have. The higher prices are resulting in higher and longer loan payments now, with more consumers opting for 84 month financing. The savvy buyer is shopping beforehand for low interest rates, and can take advantage of the rebate cash instead of the discount financing to save even more money.

I’ve seen the surprised look on customers’ faces more than once with the tactic of coming back in the negotiations and saying the last price they said “no” to was given in error, and the car is not for sale at that number. “The best we can do is $”. And with that maneuver we’re off to the races – people always want what they can’t have, so they’ll demand that you honor the “mistaken” price they refused five minutes earlier.

Besides sharing the secrets to getting the lowest price possible, I hope to give the readers enough knowledge and insight into the inner workings of the dealer environment so that they can be confident and comfortable with the whole buying procedure. With what they’ve learned, I want them to realize they can maintain control of the whole sales process, from vehicle selection, negotiations, finance options, right through delivery, and there will be no surprises.

Walk in Prepared, and make sure it’s the end of the month 😊