‘Absolutely nothing to be gained from going to the dealership’: Car-buying expert reveals why you should never negotiate price in person

Got car-buying jitters? Do the negotiating from home, this expert says.

The car buying process can be such a hassle. While it's exciting to find your dream vehicle, the fun usually stops when you get to the dealership. Here, you have to put your defenses up.

Car salespeople are often referred to as "sketchy" for a reason. They often have the reputation of doing anything to ultimately get you to pay as much as possible.

For instance, one salesperson switched up on a customer when it was time to honor the trade-in they'd agreed on. Another tricked a man into signing up for a credit card to use for the down payment. And if you're a woman shopping alone, it can be even worse. One woman caught her salesperson red-handed, adding on random fake fees.

A car salesperson admitted they try to make it seem like they're "on your team" and are really fighting for you with the manager to get a better rate. But they're usually just killing time to make you squirm.

So how do I get a car without getting scammed?

In a viral video with more than 400,000 views, car-buying expert Billy (@billythecarkid) offered key advice. You need to stop negotiating at the dealership.

"There is absolutely nothing to be gained from going to the dealership unless you have negotiated the deal and negotiated the financing [beforehand]. You will be taken advantage of in every way, shape, or form," Billy said.

When you first stop at the dealership, the salesperson relies on your high emotions. They want you to be excited and impulsive after the test drive.

That's why after the test drive, the dealership tends to offer you a higher finance rate they claim isn't negotiable. Plenty of people don't negotiate it or the car price because they're uncomfortable doing it in person.

Billy pointed out, "Who wants to stand up, walk out, go to another dealership, and go through that whole process again?"

"None of you, and the dealership knows you'll be thinking that and that you'll probably just settle and sign," he continues.

Billy's four-step car buying guide

That's why he suggests going this route. Here's Billy's step-by-step guide on how to negotiate when buying a car:

1. Call all your local dealerships. Talk to a salesperson over the phone and negotiate the out-the-door car price. And don't just take the new price they give you. Let them know that you'll be calling around to other dealerships. When you call other dealerships, use the pricing the other places gave you as negotiating leverage. They don't want to lose a sale to the competition.
   
   If you have phone call anxiety, you can instead negotiate over email (and you'll have the added benefit of getting the information in writing.)
2. Narrow down your list. Once you have all your prices, choose the dealership that offers the lowest price and best financing terms.
3. Figure out financing. You can use dealership financing, but you’re likely better off securing your own car loan outside of the dealership, whether it be through your own bank or credit union. They usually offer better rates than what the dealership will give you.
   
   See, dealerships get a cut of each loan they get signed through their finance partners, so some of them will do everything in their power (even if it’s unethical or illegal) to get you to go with their loan option. That’s probably why the dealership was charging Hoodrich’s friend more for the option with his own financing, to force his hand into going with their finance.
4. Test drive - If the dealership tries to pull a fast one and change the agreed-upon numbers (or you realize you don't like the car as much as you thought you would), "simply leave and move on to the next vehicle on your list."

"Any dealership that won't give you numbers over the phone and won't accommodate you in these ways are not dealerships you wanna work with anyway. And the dealerships that will are the places that we need to put our time and energy in to keep them up and thriving," Billy concluded.

Commenters react

"The most important thing is sticking to your budget & standing firm. I told them 'I love this car but I don’t need it. My budget is more important'. I ended up paying below my budget & msrp, saved $6k," a commenter wrote.

"Yup I got fwked. bought gap for 799 and wheel/tire insurance 800. gap on progressive is $6 a month," a person shared.

"I worked my deal through email, had a signed purchase agreement with OTD pricing. walked in the next morning and was only there 45mins to sign paperwork and give them a check.it can be done," another said.

The Daily Dot reached out to Billy for comment via email and Instagram direct message.

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