Of course, we all want a low monthly payment that works with our budget. However, did you know that starting a negotiation this way can lead to you getting the exact opposite of what you want? In fact, by stating that you want a lower monthly car payment straight out of the gate, what you're doing is letting the dealership know that you haven't done the proper research on how to negotiate a car deal, which could lead to a less favorable outcome for you as the buyer. Still not understanding? Let us break it down.
If Getting A Low Monthly Car Payment Is My Objective, Why Not Focus On That?
When trying to negotiate a car deal, you may notice the salesperson trying to slide you into the direction of monthly payments. Even if that's not where you were intending to drive the conversation, the salesperson is more than likely trying to gauge how important it is to you. While not all dealerships are trying to take advantage of you, asking this question is one of the biggest ways to exploit the customer for financial gain. If the dealership is indeed trying to take advantage of you in this way, with the knowledge that a lower monthly car payment is your primary objective, they will do their best to make you focus on that without reviewing anything else.
How Does This Happen?
One of the most well-known ways a dealership may try to get you into a lower monthly car payment is by extending your loan payment. This way the payment is less of an upfront cost. The salesperson in this case will try to make it seem like the only difference is that you will just have to pay the amount for a longer period to make up the rest of the cost. While this may seem like a better overall situation for you, this is where you could end up in a bind. If you agree to this, the dealership can bump up your interest rate leading to you as the buyer, paying more money over time. This is just another way for a dealership to make more money off of you, and not at all them doing you a favor.
How Can I Avoid This?
The best way to avoid extending your loan is to simply avoid the topic of monthly payment, and rather focus on the out-the-door price of the vehicle. If you know how to calculate your monthly payment, based on the final price, then there's no reason to bring it up. Furthermore, this will help you focus on any hidden fees or extra add-ons that a dealership may try to throw your way.
So, if the dealership tries to go the route of exploring monthly payment, responses such as "I'm primarily focused on the total cost of the vehicle. Could we discuss the purchase price first?" or "Let's talk about the total price of the car first." are great ways to establish your boundaries while avoiding the conversation. Finally, if the dealership is still trying to steer the conversation in this direction after you have made your boundary clear, they are more than likely not worth your business. Though there are those dealerships that are looking to take advantage of you, there are also those who are simply looking to make an honest sale. Just know, there are plenty of fish in the sea.
If Getting A Low Monthly Car Payment Is My Objective, Why Not Focus On That?
When trying to negotiate a car deal, you may notice the salesperson trying to slide you into the direction of monthly payments. Even if that's not where you were intending to drive the conversation, the salesperson is more than likely trying to gauge how important it is to you. While not all dealerships are trying to take advantage of you, asking this question is one of the biggest ways to exploit the customer for financial gain. If the dealership is indeed trying to take advantage of you in this way, with the knowledge that a lower monthly car payment is your primary objective, they will do their best to make you focus on that without reviewing anything else.
How Does This Happen?
One of the most well-known ways a dealership may try to get you into a lower monthly car payment is by extending your loan payment. This way the payment is less of an upfront cost. The salesperson in this case will try to make it seem like the only difference is that you will just have to pay the amount for a longer period to make up the rest of the cost. While this may seem like a better overall situation for you, this is where you could end up in a bind. If you agree to this, the dealership can bump up your interest rate leading to you as the buyer, paying more money over time. This is just another way for a dealership to make more money off of you, and not at all them doing you a favor.
How Can I Avoid This?
The best way to avoid extending your loan is to simply avoid the topic of monthly payment, and rather focus on the out-the-door price of the vehicle. If you know how to calculate your monthly payment, based on the final price, then there's no reason to bring it up. Furthermore, this will help you focus on any hidden fees or extra add-ons that a dealership may try to throw your way.
So, if the dealership tries to go the route of exploring monthly payment, responses such as "I'm primarily focused on the total cost of the vehicle. Could we discuss the purchase price first?" or "Let's talk about the total price of the car first." are great ways to establish your boundaries while avoiding the conversation. Finally, if the dealership is still trying to steer the conversation in this direction after you have made your boundary clear, they are more than likely not worth your business. Though there are those dealerships that are looking to take advantage of you, there are also those who are simply looking to make an honest sale. Just know, there are plenty of fish in the sea.
