• Published:
  • August 7, 2017

Car Shopping

A car shopping we may go. For as a few know, one of my 8 jobs so far this year was working at a car sales place. I should rather say sitting and twiddling my thumbs, as working would mean something was actually being done. Slow and dead would describe that place. But I figured at least I can let you in on a few tricks when a car shopping you go the next time. Some may have differences depending on where you go, but a lot of similarities are at play.

  1. Admin fee, bank fee, office fee, paperwork fee…whatever the heck they call it is horse pucky. If you’re told the bank makes them charge it to you, liar liar pants on fire right there. The higher ups in the company may make them charge you it, and I stress “may”, but the bank demands no such charge. The bank doesn’t want to do the paperwork so they contract it out to the dealership to do. The dealership sets the price. And paperwork doesn’t take more than an hour to do and they charge roughly $399-$499 in many places. Meaning you are paying them nearly $500 an hour. Most lawyers and doctors are cheaper than that.
  2. New does lose value as soon as you take it off the lot, coming back down to really what they should be worth usually. This one isn’t all on the dealerships though, as the car companies set the price, leaving them little room to deal. When selling new, salesmen don’t make much. That is why they try to push you toward used or try to get you to add more bells and whistles like running boards, backup camera, etc. For example, a base model $50,000 brand new truck, could leave one with $750 from the sale, depending on percentage they get. And that’s with no wheeling and dealing. For a base model brand new $25,000 car, you’re looking at maybe $150.
  3. Once they sell new though, they try to tack on all kinds of other stuff, as they get a percentage from each. The only one I’d recommend is life and disability if you have any family that would get stuck with the bill if you were to croak or if you think there is any way you’ll end up disabled. Why? Because if you have that, poof, you may croak but your spouse, kids, whoever, just got a free car. That pays it off free and clear. And if you end up disabled, poof, no car payments for you. Car is all yours. Extended warranty is pricey and to each their own. Under coating, pfffft, usually cheaper elsewhere.
  4. The bank decides your interest rate, sorta. If you have crap credit, or even iffy credit, you are going to get a higher interest rate. Nothing any car dealer can do about that. If they can, run! You’re into loan shark territory then. But, and it’s a major BUT, the bank could come back with a lower interest rate than what you are shown. Why weren’t you shown the lowest? Because the higher the interest rate charged to you, the more the kickback the bank gives the dealer/sales person. That’s why they hate 0% sales because they don’t get that extra.

This post went on a bit longer than I thought, so we’ll end here. If you want more I can do a part two. May as well make use of what I learned somehow.

Did you know any of these? Any other tricks you want to know about?

Enjoy life, forget the strife.


Hilary Melton-Butcher

2017-08-07 07:10:19 Reply

Hi Pat – haven’t shopped for a car for ages … but do know of the ‘added’ extras … used in all trades … = a rip off. Cheers Hilary

    Pat Hatt

    2017-08-07 11:15:32 Reply

    That they do.

Alex J. Cavanaugh

2017-08-07 11:58:50 Reply

Car salesmen don’t make much, do they?
I also know car dealers hate people who pay cash. They want you to finance something so they can get some extra dough.

    Pat Hatt

    2017-08-07 12:29:53 Reply

    Nope, they don’t make much these days. haha yeah, many will ignore you when you pay cash because they don’t get the finance kickbacks.


2017-08-09 11:45:26 Reply

What a different road for you! I haven’t been car shopping since 1998, and no regrets. I got a great deal because I knew so many of the tips you are sharing because of friends who had done as you did. Helped that the dealership had just been purchased by a big nationally known name who was anxious to make a first sale. Very few people I know stay in that profession long. That says volumes about the field in general. Good for you for sticking it out long enough to pick up tips!

    Pat Hatt

    2017-08-09 12:03:53 Reply

    Yeah, just not feasible to stay in for long and feed yourself. More of stay for little pay until you find more. Interesting to see the inner workings though.

Leave a Comment

Name (required)
E-mail (required)