How used car dealers develop?

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1. Loss-Leader Advertising: Have you ever see those ads in the paper for cars that are listed for well below what you'd expect to pay? Well, it's usually because they're undesirable colors, have no options or generally have problems. But car dealers aren't trying to sell you these cars, they just use them to lure you in with low prices. Then, once they've explained to you why these cars are undesirable, they try to trade you up to a better car that you'll gladly pay more money for because it seems so much nicer in comparison.

2. Lowballing: This is an exasperating technique used by salespeople to wear you down. A salesperson will give you an absurdly low quote for a car, then encourage you to shop around to see if you can find a better price. Buyers will visit with many other dealers --- which of course won't be able to match the low price --- and will spend hours shopping around before returning to the original dealer. The salesperson then has to confirm the price with their manager, who undoubtedly will say that they can't sell it for that little. This process can be repeated several times until you're so exhausted, you'll just pay what they're asking to be done with the whole ordeal.

3. "Free" Extras: By throwing in extras, the salesperson is hoping to help stall negotiations. After all, if you're getting more thrown in, you're going to be much less likely to ask for a considerably lower price. The problem is, even with loads of "free" extras, you will likely end up paying more than what a car is worth, and that's just what the salesperson wants.

4. Making Friends: Any salesperson worth his or her salt will make a huge effort to find common ground and interests with a potential buyer in an attempt to cultivate a sort of friendship. This helps the customer to identify and relate to the salesperson, which in turns makes it much harder to say "no." After all, you don't want to let your friend down by not buying from them.

5. "My Wife/Husband/Mother Drives One": If the car is good enough for the salesperson's family, then what excuse do you have for it not being good enough for you? This trick is meant to convince you of the value of the car and make you feel guilty for not wanting it. Even if this line is true, it's likely that the salesperson gets a substantial discount on the car by working for a dealership, making it much more of a bargain for him or her.

6. Limited-Time Offers: This is one of the most common sales tricks, by far, as commercials and ads play on this heavily. This is meant to put pressure on the customer by creating a sense of urgency that the deal is only available right now. This forces the customer to make up his or her mind on the spot, rather than take the time to shop around and make an informed choice.

7. Hot Property: No matter what you're looking into buying, an enterprising salesperson will try to convince you that it's a highly sought-after car or one that customers have been asking for frequently. This may or may not be true, but you should be wary of claims like this.

8. The Lapdog Trick: This trick is meant to get the customer to feel obligated to come back to the dealership. When a customer tells the dealer that he or she is going to shop around, the dealer tells the customer to come back and they'll match the lowest price. That way, instead of buying from the place with the lowest price, you'll feel like you have to return to the original dealer.

9. Highballing: If you're bringing in a trade-in, beware of this trick. Many customers are drawn to dealerships that offer them an overly high amount for their trade-in. And it seems like a great deal at the time, so why not? But rest assured, that you'll pay for it in the long run in the price of the new vehicle you're buying.

10. Stalling: This tactic is meant to tire you out when you're car shopping and can make it hard for you to shop around, as well as impatient just to get the process over with. Common tactics include salespeople who misplace keys, take a long time to access a trade-in or make lengthy consultations with the manager.

11. Sucking Back: This method of selling involves offering you less for your trade-in that it is actually worth, then selling you a new car at an unrealistically low price. It is meant to conceal the actual profit from the customer, as he or she will often feel that they have gotten a steal.

12. Bouncing the Trade-In: This is an especially dirty trick salespeople will use even after you've left the lot. Someone will call you before you've gotten your new car and tell you that there was an issue with your trade- in, usually something along the lines of it being worth considerably less than what you were originally quoted. If you fall for this trick, the salesperson gets to profit from the difference, and you'll lose out because of it.

13. Repayment Quotes: This is a sneaky way to increase the total amount you pay for a car. Dealers will make slight increases to your monthly repayment quotes, which won't seem like much but will add up to quite a bit after you've been paying them for a few years. Make sure to do the math yourself when getting these kinds of quotes to double-check that you're getting the best deal.

14. Spraying: You'll want to do whatever you can to avoid being the victim of this sales method. This is when a salesperson pursues a customer relentlessly until a sale is made. Even if you do end up buying from another dealer, the salesperson will call you and attempt to make you feel bad about how much you paid or that you were disloyal to him or her. Don't let these kinds of sales tactics get to you; you deserve to get the best deal possible, regardless of who you buy from.

15. Timing: No matter when you walk into a dealership, it will always be a "lucky" time to buy. Either the salesperson will be trying to meet an end-of-the-month quota or make up for missing one last month, and they just have to sell you the car more cheaply. While there are quotas that dealers have to meet, you have no way of knowing whether this is truth or just a fib to get you to buy.

16. Puppy Dogging: While it might seem like it's nice of the salesperson to let you take your new car home overnight, you should realize that sometimes this is a bit of a sales trick. First, the salesperson is hoping you'll "fall in love" with the car while you have it. Secondly, this is often a ruse accompanied by a lengthy overnight trade-in assessment.

17. Cheap Financing: Sometimes a dealer will tell you that he or she has reached the bottom of what they can offer you in terms of a deal on the car, but that they can offer you some special financing terms. The dealer will tell you that you will only have to pay a slightly lower amount than the normal rate. Make sure you know what current interest rates are, because otherwise, you can end up paying a higher rate than you should be, even if the salesperson tells you it's a good deal.

18. Referred by a Friend: Beware of telling a salesperson you've been referred to by a friend. While your friend may in fact have gotten a good deal, you are more likely to be trusting of a salesperson that a friend has recommended, and you may not be on the lookout for tricks and scams.

19. 100-Point Inspection: Most car dealerships will try to sell you a car based on inspections made by their on-site mechanics, usually a 100-point inspection that sounds particularly comprehensive. They may or may not be trustworthy, but it's best to be safe and have your own mechanic check out the car before you buy it.

20. Dressing Up: Watch out for cars that have been cosmetically polished and gussied up to hide flaws. Rust spots, dings and scratches are often hidden under a coat of new paint or wax. Keep a watchful eye out for things that may be cosmetic but can greatly reduce the value of the car.

21. Making Lemonade Out of a Lemon: Don't get stuck with a lemon, a car that simply cannot reasonably be fixed. Car dealers will often do just about anything to get you to walk off the lot with this dud of a car, so make sure you've done your research and know what kind of cars to avoid before you go shopping.

22. Getting You Behind the Wheel: If you are serious about buying a car, you will eventually have to take a test drive, but if a salesperson is pushing you into taking a drive, he or she may be trying to make a hard sell. This can work especially well if you have kids with you, who will always be excited to take a test drive and can do a lot of the sales work for the salesperson.

23. Selling Up: If you're not specific enough about your sales needs, you may get swindled into purchasing a car that is much more expensive or fancy than you need. After all, this is a salesperson's job. So be very specific about the year, miles, models and colors you are interested in so you won't feel motivated to buy something that wasn't what you really wanted.

24. Leaving Out the Details: Sometimes it isn't so much that a salesperson will lie to you directly but that he or she will simply forget to mention some key details that might drive you away from the deal. Of course, you'll find out eventually, but by then it will be too late. Make sure to ask plenty of questions up front to make sure you're really getting a bargain and not just getting fleeced.

25. Not Telling You the "Drive-Out Price": Often dealers will just tell you the actual sale price, not the total cost of the car after fees and taxes. These kind of fees can add up quickly and can make what seemed like a good deal on a car considerably more expensive.

It isn't fair to say that all salespeople are trying to pull the wool over your eyes and rip you off, but the truth is that some are. After all, their job is to make the sale, and some will do that at any cost. So long as you shop smart and look out for these common sales tactics, you can often avoid getting swindled and get the best deal possible on a car you'll love driving off the lot.

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