Things You Should Never Say When Buying a Car

When buying a car, strategic communication can significantly influence the outcome of your negotiation. Dealers are trained to maximize their profit, and certain statements from a buyer can inadvertently provide them with leverage. Understanding what information to withhold, and when, can help you secure a more favorable deal.

Statements About Your Financial Limits

Disclosing your financial limits too early can weaken your negotiating position. Dealerships often focus on monthly payments rather than the total purchase price, a tactic that obscures the true cost and allows for higher profit margins. If you state a desired monthly payment, a dealer might extend the loan term or add unnecessary features to meet that payment, increasing your total amount paid over time.

Revealing your maximum affordable price or credit score prematurely also provides dealers with information they can use to structure a deal that benefits them more. They might adjust prices or financing terms to align with your disclosed budget, leaving little room for genuine negotiation on the vehicle’s actual price.

It is advisable to obtain pre-approved financing from an independent lender, such as a bank or credit union, before visiting a dealership. This approach allows you to understand your budget and available interest rates, giving you a stronger negotiating stance by focusing on the car’s price rather than your financing details. Discussing your down payment amount should also be avoided until the final price of the car has been negotiated, as this information can also manipulate the deal.

Revealing Your Trade-In Details

Prematurely disclosing trade-in details can put you at a disadvantage during negotiations. Dealers often use trade-ins to manipulate the overall transaction, blurring the lines between the new car’s price and the trade-in’s value. If you mention a trade-in too early, they may inflate its perceived value to make the new car seem like a better deal, while adjusting the new car’s price to maintain their profit margin. This creates a “four-square” game, where the new car price, trade-in value, down payment, and monthly payment are juggled to confuse the buyer.

It is recommended to negotiate the purchase price of the new vehicle independently before introducing the trade-in. This ensures you are negotiating two separate transactions: the purchase of the new car and the sale of your old car. By separating these negotiations, you can better assess the fairness of each offer and prevent the dealer from obscuring the new vehicle’s true cost or undervaluing your trade-in. Researching your vehicle’s value using online tools like Kelley Blue Book or Edmunds before visiting the dealership can also provide leverage.

Expressions of Emotion or Personal Information

Displaying strong emotions or sharing excessive personal information during negotiations can undermine your position. Dealerships are adept at recognizing emotional cues and may use them to their advantage. For instance, expressing intense excitement about a particular vehicle, such as stating “I absolutely love this car,” signals emotional investment and makes you less likely to walk away, potentially leading to a less favorable price.

Revealing a sense of urgency, such as “I need a car by tomorrow,” conveys desperation and provides the dealer with leverage. They might then be less inclined to offer discounts, knowing you are under pressure to complete a purchase quickly.

Sharing irrelevant personal details about your job, family situation, or recent life events can also be exploited. Such disclosures can be perceived as vulnerabilities or pressure points a salesperson might use to justify a higher price. Maintaining a neutral, business-like demeanor and keeping personal circumstances separate from the transaction helps ensure a more objective and financially sound outcome.