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March 09, 1999

Confessions of a Car Salesman

The F&I Man

After you spend one to seven hours in a little room struggling with the sales manager, remotely located for ultimate control of the salesman's Id and Ego, you will have agreed on a price. The salesman will then explain that you need to sit with the F&I Man before you can take your new car home.

Why? You protest.

Because you have to, is the ultimate answer they will proffer.

F&I stands for finance and insurance. The dealership you are at may not call him the F&I Man in front of you, they might use "Finance Manager," but trust me, this person IS the F&I Man.

First, the only way you can avoid stepping into the F&I Man's office is to pay cash, lump sum, cash and carry, no payments. Fools who are looking at a monthly payment will be getting up close and personal with the F&I guy.

So what does the F&I Man do? First, the F&I Man has a practical use. Aside from setting up your payments with the bank or finance company, he's going to try to sell you: A) an extended warranty on a new car; B) a limited warranty on a used car; C) some kind of super paint protection clear coat garbage; D) some kind of crazy roadside assistance package; and if he's really evil, E) life insurance and F) disability insurance.

But you just want to buy a car. How are you going to beat the F&I Man? First, before you even go in to see him, pull the salesman aside and say, "Look, we have a deal. If he tries to change it, I'm walking." And mean it. This may cause the salesman to run and plead with the F&I Man to take it easy on you. Remember, if you walk, these people lose a meal.

Second, get ready to say, "No, thank you." A lot. How many times? Hundreds maybe, or maybe only a dozen times. The truth is, every little package the F&I Man tries to foist upon you is pure, refined, unadulterated profit for him and the dealership. Pure profit!

You may like an extended warranty, but two weeks after you get home you will get offers in the mail for the same warranty he wants to sell you for half the price. If you really want more paint and rust protection than a new car comes with, take the car to a detailing shop and have them do it. It will be cheaper and last longer. Want roadside assistance? Call AAA. And trust me, you don't need the insurance this man wants to sell you. Call an independent insurance agent.

The point is, in car sales training the sales people are told that the F&I Man is a fact of life, like the sunrise. We are told that the little items he tries to pressure people into buying are the greatest source of profit for the dealership. We are told to leave him alone, to not mess with him, to let him do his black magic. We are also told that he will never kill one of our deals. This is important. The F&I Man will never let you walk -- he will eventually give you the deal you originally agreed to with the salesman. He will give up... eventually.

Now some strategies to use upon being escorted into the F&I Man's office.

1) Say, "You are the F&I Man! I know your dark intent! Set up my payments
and send me on my way!"

2) Bring a small tape player with a prerecorded tape of you saying, "No. Thank you. Thank you, but no. No. Again, no." Press play upon entering his office and shut your eyes until you are carried out and into your new car.

3) Fall on the ground and begin flinching uncontrollably as soon as he asks you what you like best about your new car. It's a set-up line.

The F&I Man -- crucial to the dealership but absolutely useless to you (and deadly to your pocketbook). Say no, talk slow, and threaten to go.

Finally, understand that all of these confessions are just a start. You will really learn how it is done through experience. This series can't possibly make you an expert, and it can't give you everything you need to know to do it perfectly. I wrote this series to make you brave. Go back and read Tip #1. It says, "You can win!" And you can.

Now you have peeked behind the curtain. You know about the weaknesses of your adversary. You know your own limitations, but also your own potential. Be brave... and win one for ol' Winthorp.

-- Mike Cavendish

For more helpful tips, visit our extensive How to Buy a Car area. There you'll find step-by-step information on the Foolish faxathon, negotiating, pricing, worksheets, and much more. If you have questions or comments about this feature, please send them on.

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