Unless you live for the wheel and deal, car dealerships can be an intimidating place for potential buyers. Not only are you entering an unfamiliar territory inhabited by experts, but there’s a lot of pressure to make the right choice.
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Expensive to buy and maintain, worth less and less with each mile driven, car ownership can be both a burden and a necessity. According to Kelley Blue Book, the average new car price was a record high $49,507 in December 2023, a 5% increase from the previous year.
It’s might not always be possible to enjoy the car buying experience, but you can certainly reduce anxiety by knowing what you want and keeping certain information close to your chest. Read on for seven questions you should never answer when buying a car.
“How much do you know about cars?”
When it comes to a major purchase, never put yourself at a disadvantage. If you’re planning on spending thousands on a new vehicle, you have to do your research. That said, even if you know less than nothing about cars, don’t let a salesperson know.
Dealers are trying to sell cars as eagerly as you want to buy one. Get a good idea of what you want, check reputable website rankings and don’t buy any car you’re unsure of — it’ll remind you every day of the mistake you’ve made.
A salesperson wants to make the biggest commission possible. To do that they want to take the reins and guide you through the process on their terms, not yours.
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“Why do you need a new car?”
There’s no reason to be insolent, but the reason you’re buying a new car is irrelevant to a salesperson/stranger. Divulging personal, professional or financial information — or even a motive — while buying a new-to-you vehicle is unnecessary during the negotiating of a sale.
When you drive your clunker into a dealership hoping that you’ll be landing the car of your dreams, you’re the one in charge, regardless of how poor that clunker looks and rides. Even if you’re desperate, knowing exactly what you want will have the salesperson following your lead.
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“How much are you willing to pay monthly?”
You should always determine a total price for the car before you start discussing monthly payments. Once you start talking about your monthly payment, everything gets confusing because you don’t know if that’s the payment for 24 or 36 or 60 months, or how much of that would include interest charges if you were financing through the dealer.
As MotorBiscuit suggested, “Just tell them you’re not sure yet and need to figure out how much you can afford.”
“What kind of credit do you have?”
Your financial situation is none of a dealership’s business. Divulging your current credit status gives a salesperson the motivation to move you toward certain types of new or used vehicles.
A credit check is fine once you’ve settled on a car, but any time prior to a handshake is premature. You don’t want to get pre-qualified by the salesperson and get steered toward a vehicle you don’t want.
Buyers with lower credit scores will get offered higher interest rates. Either skirt the issue or do as U.S. News & World Reports recommended, and knock their socks off by saying, “My credit score is 750, and I should qualify for 4.25% financing.”
“What down payment can you afford?”
Again, you should be deciding on what car you want — and the total price — before providing separate financial expectations to a car salesperson. If they know your monthly budget or your down payment limit, they are going to try to maximize what they can get from you, which will differ from what you want to give.
Your goal in buying a new car is to get exactly what you want, including features and upgrades, and then negotiate the price down to the lowest possible level. Loan interest rates, terms and length are separate from agreeing on price. The same goes for down payments.
Getting your price is essential — without that down payments are moot. There’s no reason to discuss them while you’re still haggling on dollars. Isolating upfront transactions helps simplify the buying process and ensures that the dealer has no choice but to focus on the cost of the car.
“What do you do for a living?”
Selling the same product to different buyers at different prices (based on their willingness to pay for the product) as a way to maximize profits is called price discrimination, and all car dealers engage in the technique.
As the FTC noted, price discrimination is generally legal (unless based on factors such as race, gender, sexual orientation or religion), but that doesn’t mean you should disclose your income because of it.
If a buyer works a minimum-wage job, dealers will be less likely to upsell than if they were dealing with a corporate executive. There’s no need to lie; just be vague. If you’re a cardiologist, just say you work at a hospital.
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“How much do you want for your trade-in?”
Like new cars, the used car game is hot. Dealerships are always looking for trade-ins to flip to new customers. But, once again, you don’t have to show your hand to dealers when trading in your old car.
It may go without saying, but you should always err on the side of caution when negotiating with someone whose livelihood depends on getting you to buy. “The more numbers you have in the game, the more chances they have to manipulate the final price or monthly payment,” said U.S. News & World Report.
If you’re trading in, don’t mention it. If the dealer asks, just say you’re considering it, or that you haven’t yet decided.
Andrew Lisa contributed to a previous version of this article.
This article originally appeared on GOBankingRates.com: 7 Questions You Should Never Answer When Buying a Car
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
