Archive for September 2019

5 Car-Buying Tips From an Undercover Salesman

Here are just a few of the things they learned and how you can safely navigate the car-buying process.

1. Test-drive your car salesperson

They face long hours, hostility from customers and constant pressure from managers who watch from “the tower,” a raised platform overlooking the car lot. Later, as I used my insider knowledge to buy more than 100 cars for an automotive website, I met many honest, intelligent, helpful car salespeople. But the work of these “good apples” was often spoiled by a rotten batch of uninformed sales stereotypes — not to mention some manipulative and even underhanded dealership managers.

I like to tell people that they should test-drive car salespeople before they test-drive the car. Here are a few things to ask yourself: Are they informed about the cars they are selling? Do they listen well and respond to your questions? Will you feel comfortable negotiating with them?

2. Check the ‘book’ value

It takes only a minute to look up the current market value of a car — and yet many shoppers wander onto the car lot without any idea of what they should pay. This one little data point would provide an amazing amount of protection. But as an undercover car salesman, I had to stand by and watch trusting, ordinary buyers overpay for their new cars.

So take a moment and check a pricing guide such as Edmunds or Kelley Blue Book for the current market value of the car you want. Bring this information with you, or download a pricing app to check prices on the fly.

3. Don’t be a monthly-payment buyer

“What kind of monthly payment are you folks looking for?” This helpful-sounding question is the favorite trick of car salespeople everywhere. And if you answer, it can be a financial disaster for you. While it sounds like the salesperson is concerned about your budget, it’s the opening gambit for a tactic called “packing payments.” If the dealer can get you to negotiate a monthly payment rather than the purchase price of the car, it’s easy to add in — or “pack” — extras and make you overpay.

Getting a preapproved car loan with AllCom Credit Union and telling the salesperson you are a “cash buyer” is an easy way to deflect this trick.

4. Be ready to walk

You could walk into a dealership and have the same high-pressure experience your father had when he bought cars decades ago. Or you could have a mellow, enjoyable shopping experience where you get a fair deal. There’s such a wide range of sales styles and dealerships.

I worked at a “turnover house,” meaning that if one salesperson wasn’t making progress with a customer, the customer was turned over to a different salesperson. If that didn’t work, they brought in a “closer” —  an overbearing, manipulative bully who was determined to make a deal at any cost.

If you see these warning signs, if you get a bad vibe, if you don’t like your salesperson, beat a hasty retreat — instead of going to war, go to another dealership. For example, the second dealership I worked at was very relaxed and didn’t use closers. But high-pressure or relaxed, whichever type of car lot you find yourself on, never take anything at face value.

5. Beware the finance manager

While the salesperson negotiates the price of the car and pretends to be your best friend, the real damage is done after the customer is handed off to the finance and insurance manager. Also called the “F&I guy,” this salesperson assumes the air of a financial advisor, sort of like a friendly banker. But he or she is really there to build even more profit into the deal by inflating the interest rate on your loan and selling you extra products such as extended warranties and anti-theft devices.

Before you go to the dealership, spend a few minutes being your own finance manager by using an auto loan calculator to set up your own deal. Bring these figures with you to the dealership and get the dealer to match or beat them.

Now is the Time to Buy!

Get Pre-approved for an AllCom Credit Union Auto Loan

Shopping for vehicle financing is just as important as shopping for the vehicle itself. Before you shop for your next vehicle, find out why getting pre-approved for an AllCom Credit Union auto loan is the way to go.

Helps you determine how much you can afford.
Getting an auto loan pre-approval helps you know how much you can afford to spend before you even start shopping for a car so you can stick to your budget. If the salesperson tries to sell you a newer, more expensive car, you can feel more confident about declining the offer because you know how much you can comfortably spend and what your interest rate will be on your loan.

Improves your chances of getting a lower rate.
Getting pre-approved is often the best option when you’re trying to finance a car because it can help you get a lower interest rate on your loan, which can save you money over the life of your repayment term. High-interest car loans are like a double-edged sword because while your car is depreciating in value as you use it, you also have to spend several years paying back your loan.

AllCom offers competitive rates as low as 3.49% APR* and terms to meet you financing needs.

Already have an auto loan with another Financial Institution? You may be able to refinance with AllCom and lower your rate or get cash back.

Speak with an AllCom loan officer or apply online today.

 

*Annual Percentage Rate. 3.49% best rate available based on model year, mileage and credit worthiness. 2012-2019 model years, 60-month maximum term. Loan based on payment of $18.19 per $1000 borrowed for 60 months. Other rates and terms available. AllCom reserves the right to rescind this offer at any time. Offer not valid on existing AllCom auto loans. AllCom will finance up to 100% of the purchase price (for purchases) or NADA retail value (for refinances). Actual amount down will depend on model year, mileage, collateral and credit worthiness.

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