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Advice from Intellichoice: Understanding Dealerships - Confessions of an Auto Salesman

It isn't easy to find sales people in the auto industry eager to talk candidly with the media about what tactics they use to separate buyers from their hard-earned money. We found one veteran, however, who was willing - on the condition of anonymity - to tell us some of the things he's seen during his more than 30 years in the business.

IntelliChoice (IC): What sort of things have you done to get more money out of a buyer?

Salesman (S): You always try to get people into a more-expensive vehicle. If you don't help them, they will normally gravitate to the expensive model, even if they know they can't afford it. I can usually get them into the car, but they'll be upside-down in their payments fairly quickly.

IC: What about high interest rates?

S: Look, there are a lot of people out there who have lousy credit and can't get financing, let alone a good interest rate. If we have to work the deal, limited by a lousy credit rate, we get paid for that. If it's seven points over the loan, what's the harm, as long as they get their car?

IC: So what have you done to get more money on the deal?

S: I can make a lot of money by getting folks to buy the extras, like paint treatment. It used to be corrosion protection, but that isn't used much. Window etching and extra insurance are also good money-makers.

IC: Isn't it hard to get people to go for these extras?

S: With the internet, it sure is. It's been the worst thing to happen to salespeople. This is the only business in the country where people can find out our cost for our product. It makes us have to work harder to make money, but we can still do it.

IC: What would be your best advice for someone about to buy a car so they don't get ripped off?

S: Don't buy a vehicle.

IC: Seriously, what would you tell a good friend?

S: If they research their vehicle and know what the average pricing is and get their own financing, they're pretty safe. And just say no to everything the sales and F&I guys try to sell you.

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