If You Know Their Rules ...
You Can Play Their Games

A good salesperson understands that his or her first task after learning your price range is to sell you a car that is both within your price range and satisfies your needs. Then, having convinced you that a particular vehicle satisfies your driving needs, they begin to deal with the financial side of the deal. Unfortunately, most salespeople are so anxious to sell you a car, they cut the car presentation short and attempt to go right for the close.

Depending on what you tell the salesperson about any or all of the eight questions listed above, the salesperson will use that information to decide his or her sales strategy.

What Your Answers Tell the Salesperson

1. How much are you planning to spend?
If you tell salespeople that you're planning to spend $15,000, they'll show you a car with an MSRP (manufacturer's suggested retail price) of $15,000. They know that you will probably want to negotiate the price. It's their hope that they will sell you the car for around $14,000 and then make up the additional thousand by selling you an extended warranty, rust proofing, life insurance, and anything else they offer as add-ons.

If you have allocated $15,000 for a vehicle and want to get the maximum car, van, or truck for that amount, you should enter the dealership knowing the true "invoice" or "dealer cost" of the car. In this example, if you've got $15,000 to spend, then the car ought to have an invoice price of something less than $15,000. Therefore, you should ask to see a car that is 15 to 20 percent above your budget. In this case you'd tell the salesperson that you're thinking about, something in the $17,000 to $18,000 range.