Buying a car involves careful negotiation and strategy and not just a quick visit to the dealership as some might believe.
Some might be under the impression that buying a car is a fairly simple process. But in reality, getting the right car at the right price involves a lot more than walking into a dealership and choosing one of your liking. Erik (@ehustead), a car salesperson, has acquired popularity on TikTok for a video in which he guides potential buyers on how to answer questions from car dealers and also when to avoid answering one.
Erik suggests that those looking to buy a car should keep their intended amount for a car payment confidential. He claims that disclosing this figure can make it more difficult to negotiate a favorable price. Giving a precise amount can result in one paying more than is necessary. Dealerships may modify their payment plans to match the stated price, costing a potential buyer more in the long run. "The best deal you could have potentially secured might have been around $450 or $500 per month," Erik explains. "But if you mention $600, the dealership could respond by increasing your interest rate or upselling you on an expensive extended warranty."
Second, Erik advises against disclosing right away if you intend to pay cash for the car. "If you're a cash customer, please do not tell the dealership that you're paying cash. I know we used to be told that cash is king. That is not the case anymore. Most dealerships, if you're paying cash, they are not going to give you the best deal. They want you to finance so that they can make back money. If you're a cash customer, I would save that information to the very end." He strongly recommends keeping your cash payment plans private until the negotiation process nears its conclusion.
Lastly, Erik advises against disclosing the amount you expect to receive for a trade-in vehicle. "Question No. 3 that you should never answer at the car dealership is how much money are you looking to get out of your trade. Never answer that question. The way the negotiation process works is the first guy that speaks loses. No matter what you say you want out of your vehicle, I promise you, the dealership is going to hit you lower, probably way lower. And then they're going to go from there. The guy who speaks up first and puts a number on the vehicle always loses. Let the dealership put the price on your car first and negotiate from there," Erik says.
In the comments, people freely expressed their frustrations with car dealerships. They complained about pushy sales tactics, confusing prices and being pressured to buy extra things they didn't need.
"#1 Don’t be afraid to walk out. I do every time and get the deal I want every time!" advised @polaralli. "The cash thing is 100% true. A truck I was looking at was $52,500 financed, told them I was paying cash and the price went up to $57k. I walked!" commented @jamey1e. "Day one of negotiations. Never give a number first" added @chiknoods
@ehustead 3 Questions to NEVER Answer at the Car Dealership‼️ #cartok #carsales #dealershiplife #dealershiptiktok #wvwhips #fyp #carguy #carsalesman #dealership #carsalesmen #usedcardealership #cartips #carbuyingtips #carbuyingadvice ♬ original sound - Erik
You can follow Erik (@ehustead) on TikTok for more car-related content.