10 Secrets Car Dealerships Don’t Want You to Know

Buying a new car can be an exciting endeavor. Perhaps you’ve researched and chosen a few makes and models that suit your taste and lifestyle. 

You’re ready to go into a dealership hoping to find the best deal. To be fully prepared, you’ll want to know all the things that may not be common knowledge.

Navigating the sales pitches and negotiating may be part of it all, but there are more ways to empower yourself at the dealership. 

Here are some secrets that car dealerships don’t want you to know. Knowing them can help you avoid throwing money away.

You may have seen advertisements in the mail or online touting unbeatable prices for the kind of car you want. Remember that those ads are just designed to get you onto the lot.

Check the fine print first to see if monthly deals are based on how much you put down or how many months you have to pay. Ideally, you can lower your car costs at the point of purchase and monthly.

If you plan to lease a car, make sure to take the length of the contract into consideration. If you do go into the dealership, ask the salesperson for any unadvertised deals that may work better for you.

Before you go into a dealer, spend time online and compare the prices of the cars you are interested in with other shops, and keep notes.

You may want to visit more than one dealer and get a feel for the salespeople and if they are interested in negotiating. Knowing other offers in the area arms you with knowledge, hopefully enabling you to get the best deal.

It’s widely assumed that a trip to the dealer to find a new car is naturally a long process. But it doesn’t have to take that long. 

Some salespeople may prolong the process as a sales tactic. Anticipating that the process will be long might make you want to seal the deal even faster — and that often doesn’t work in the buyer’s favor.

Instead, try to have a clear idea of what you want and the questions you have to keep the process running smoothly and on track. If it’s taking too long, it might not be the right day to buy a car.

Salespeople may ask you different questions to bolster their effort to upsell. 

Don’t have a large down payment? They may tell you that’s not an issue or that you may not even need a down payment. (But will that cost you more in the long run?) Buying a car for a growing family? They might try to sell you a bigger car than you need. 

Before you go to the dealer, carefully research the kind of car you need within your budget.

Dealers are trying to hit their sales goals near the end of the year, which means they may be more willing to make a deal in order to get a car off of their lot and into the final sales numbers for the year.

But be aware that they may be busy over the holidays, so come prepared with a pre-approved loan or check the dealership’s inventory online before you arrive so you’re prepared to negotiate a deal and hopefully save money.

Dealerships usually make less of a profit on a new car than a used car, so be cautious if a salesperson tries to steer you away from that brand-new car you’ve been researching for a used car on their lot.

And if you decide a used vehicle fits better in your budget, ask the salesperson if it’s a certified used car. That may give you peace of mind that the dealer has inspected the vehicle and that you can get an extended warranty.

Car manufacturers or dealers may offer incentives or rebates on certain makes and models throughout the year, and it’s good to research this information before you walk into the dealership. 

Look into the latest incentives and rebates on sites such as Edmunds or J.D. Power to further inform your purchase.

Pro tip: Instead of selling your current car, sites like Edmunds are a good place to help you determine how much it could be worth as a trade-in and use that information as part of your negotiations with a dealership.

You may think arriving at the paperwork portion of the deal is the last step, but that’s not always the case. Just as you get close to finally getting out of the dealership, you may be bombarded with the offer to add extras. 

Dealers may suggest things you may not need, like an undercoat, Wi-Fi access, or emergency services for your vehicle. 

Keep an eye out for any of these add-ons that drive up the price, especially near the end of your buying process.

There may be dealer document fees, key protection, and other charges that you may be able to negotiate if you find them on your final paperwork.

Carefully review the contract before signing to see if any of these fees are on there and could be reduced.

Pro tip: Another additional fee you should include in your calculations is car insurance. You might find a great car with a good deal, but the monthly insurance cost may be higher than expected based on the make and model.

If you’ve been saving up to buy a car, being able to pay with cash may be the best way to get a deal. But if you can’t do that, consider shopping around at different banks or credit unions to find the best deals on a car loan. 

You may find that you can get better terms and rates with a local bank than if you go directly through the dealer for financing. Though it‘s possible to climb out of debt, the last thing you want is a steep climb.

Buying a new car is a big decision, but it doesn’t have to be overwhelming if you make sure that you are prepared and financially fit. 

Being cautious when you go into a car dealership may help you be a more savvy shopper. A good dealer, however, will work with you to learn what you need and respect your budget. 

If you aren’t happy with how you’re being treated when shopping, there are other dealerships out there that may be better at helping you get the best deal for you.