Do you tell a car salesman your budget? (2024)

Do you tell a car salesman your budget?

I tell them what I am prepared to spend. That is usually the amount of money I have in my pocket, as I always pay cash. And if they offer me a car which costs more, I'll ask whether they are going to sell it to me for the price I told them is my budget.

What to say when car salesman asks your budget?

Counter the monthly payment conversation: Your dealer may ask what you're hoping to pay for your car each month. Instead, tell your salesperson that you'd prefer discussing the car's out-the-door price and fair market value. If need be, you can always discuss refinancing your car loan down the road.

Should you tell a car salesman your budget?

"This Is the Maximum I Can Pay Each Month"

Tell a car salesperson your budget for monthly car payments, and guess what? That's what your payment will be, no matter how much the car should have cost. That's why you first want to negotiate the total price, interest rate, and trade-in value.

Should you tell a dealer how much you owe?

"Under no circ*mstances should you start talking about monthly payments," says John Nielson, Director of Auto Repair and Buying for AAA. "You should just focus on negotiating the purchase price.

What should I say to a car salesman?

What not to say to car salesman?

How do you answer a budget question?

Can you talk a car salesman down on price?

Despite the MSRP sticker price of a car, you can make any offer, and a good salesperson should be willing to consider a reasonable price based on the car's condition. If the car you want has been on the lot for several weeks, use the fact that it isn't moving to bring the price down.

Why not tell a car salesman you are paying cash?

Again, don't tell the salesperson that you plan to pay cash before negotiating. The dealership may boost the car's price by over $1,000 to make up for the lost profit from not selling accessories or the extended warranty and not handling the loan.

How do you beat a car salesman at his own game?

If you want to beat car dealerships at their own game, you need to first understand the true market value of what you're buying and trading in. You should also get quotes via phone or email before you physically go into the dealership, and then skip all the extras they'll push you to buy.

What not to say at a dealership?

Why do dealers want to know payoff?

No strings attached. If you still owe money on the car, things get a bit more complicated. The dealership needs to factor in the payoff amount to settle your loan as part of the trade-in process. This affects the trade-in value they can offer you.

Why do car salesmen want to know how much you owe?

They want to know how much equity (or often negative equity) you have in the car. If you're $8000 upside down, they'll want to know that for several reasons. Also, if you owe right around what their offer will be, they will likely use your payoff as their offer.

Do you tip a car salesman?

In the United States, it is not customary to tip a car salesperson. However, if you feel you received exemplary service and expect to buy from the salesperson again in the future, perhaps slipping the salesperson something extra would help you be remembered.

What do you say to negotiate a car price?

Tell the salesperson that you simply want what you know it's worth. Provide the figures to back this up, along with printouts from several pricing sources. This defuses any attempt to pull out a used-car pricing book so the salesperson can “prove” that your figures are too high.

Why do car salesmen talk to manager?

The ploy, “Let me go talk to my manager" is called a T O or a turn over. Most dealerships require that a salesperson do a T O before letting the customer leave, in other words, if they cant close the deal then they turn it over and let someone else try.

How much can you talk a dealer down on a new car?

It is considered reasonable to start by asking for 5% off the invoice price of a new car and negotiate from there. Depending on how the negotiation goes, you should end up paying between the invoice price and the sticker price. Used cards. You tend to have more wiggle room with used cars.

How do you thank a car salesman?

What a car salesman should not do?

Focusing on Cost Instead of Value

One of the more innocent automotive sales mistakes is talking in terms of cost instead of value. Yes, customers want to know they're getting a great deal on a car. The more money you can show them that they're saving, the better. However, selling a product is also about selling value.

What is the simple budget rule?

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

How do you explain your budget?

A budget is a plan you write down to decide how you will spend your money each month. A budget helps you make sure you will have enough money every month. Without a budget, you might run out of money before your next paycheck.

What are the 4 questions you must ask when making a budget?

Do dealerships budge on price?

As independent franchises, dealers can sell the car at any price. Some dealerships and brands have developed no-haggle pricing. The price on the window is the price of the car, they say. In most cases, you'll still need to negotiate the value of your trade, the cost of financing and the price of any add-ons.

How much below dealer price should I offer?

Based on your pricing homework, you should have a good idea of how much you're willing to pay. Begin by making an offer that is realistic but 15 to 25 percent lower than this figure. Name your offer and wait until the person you're negotiating with responds.

Can I ask for a lower price on a car?

Dealer mark-ups and demand in your local market can influence the car price you see at the dealership. However, you can always try to negotiate a lower base price, and you should. Some dealerships won't budge. Some even market themselves as no-haggle dealerships, meaning they don't negotiate the sticker price at all.