<SPECIAL FEATURE>
March 09, 1999

Confessions of a Car Salesman

Your Dream Car

It is important to set and keep certain parameters in mind when you are the car shopper.

Car salesmen are trained to sell you a car that is on the lot the day you're on the lot. No matter what. They don't want you to special order or to go home and think about it, even if you promise to come back. When you leave their lot, they want to make sure you take a new car with you.

How do they make sure they have exactly what you want? For starters, they don't want you to tell them, or yourself, exactly what you want. The salesman will say, "What are your three favorite colors?"

If you say, "Black," they will continue to say, "Okay, black, aaaaaaaaand... " until you spit out, somewhat reflexively, "Uh... dark blue and green?"

"Great," they say, "blue, green, and black!" Now the salesman has much more inventory to work with because he can show you three colors of cars, and you have just told him that you might like a blue or green car, even if you've had a poster of a black car on your cubicle wall for two years. Never underestimate the subtle power of suggestion.

The salesman might then say, "What would you like your payments to be?" OK, you think, I'm certain on this one. "Two hundred dollars a month" you say. Now the salesman doesn't want you to pin yourself down to one payment, so he'll say, "Okay, two hundred up toooooooooo... " and you will spit out, "Uh, two-fifty?"

This really happens. You will do this. I have done this as a consumer, and I know what's going on. The salesman coaxes you in a friendly manner into being flexible about your preferences. It works because most people are naturally social -- they want to get along with others, they want to avoid conflict, and they don't want to come off sounding like a jerk.

When you state your firm preference and the salesman gets you to verbalize a change to it, your preference actually changes in your mind. In our scenario, the salesman can pick between three colors and your OPENING payment range is now at two-fifty. You said it yourself.

Once you have selected a car that you wish to purchase, keep a close eye on the total price of the vehicle. If you are a good Fool, you used the Blue Book or a comparable Internet site (like Edmund's) for new cars and you know what the dealer paid. Why must you keep an eye on the total price? Because up to now, you've probably been talking only about monthly payments. Maybe you have been doing a great job of letting that salesman know that you will not be paying more than $250 a month. Fine, he says, after a false concession or two, you beat me, $250 a month it is.

But what is the TERM? How many monthly payments will you be making? The salesman will not bring this up. Let's say hypothetically a certain car can be bought by a prepared Fool for $275 a month over 48 months. The salesman might agree to your payment, but look at the term. Is it 48 months? 60 months? 66 months? In this scenario anything over 48 months is pure bacon grease for the salesman and the dealership. And how would you know different, since 60 months is a common loan period for new cars? You need to keep your eye on the total price of the car. Don't make extra payments you don't need to make.

Car salesmen understand that people think about how much car they can afford in terms of the monthly payment. The bill goes on the mail table along with the electric bill, the Sears bill, and the jelly of the month club statement. Car salesmen are trained to keep your eye on the monthly payment amount and to not discuss the term or number of payments. They cannot hide the term from you. It will show up typewritten on the 11x17 triplicate carbon paper contract that you sign. But they won't point to it.

Let's review. Color. Payment. Term. The car salesman wants you to be flexible on the first two, and won't mention the third. These are subtle forms of manipulation, suggestion, and distraction that are being taught today. Many a self-styled savvy consumer has walked in demanding a black Vette and driven out driving an ice blue Cavalier. And paid too much for it. But spot these signs, stick to your parameters, and if you get confused, leave immediately.

-- Mike Cavendish

Tip # 5 -- Don't Let the Salesman Put Down Your Current Ride

</SPECIAL FEATURE>