Sneaky Stuff Some Dealers Do

Writing in code
Dealers write numbers they don't want you to know (your ACV, profit on your deal, cost, etc.) in a simple code. Instead of using numbers, the first ten letters of the alphabet are used. A=1, B=2, etc., J=0. Thus if you see 'CJJJ' written on a trade-in appraisal sheet, you just got a $3,000 ACV for your trade-in.
This is one area where dealers will really underestimate you. They will use this in plain sight on paperwork that they use, and may even hand to you to review. You'll be amazed at what you can easily find out now that you know their 'code'.

Buy it TODAY!
The dealer knows his or her best chance to make the sale is when you are there. They will go to great lengths to give you the impression that you must buy today or else you will lose the car or the deal or some other thing.

'We have a buyer for your trade.'
It can be exciting to think that the salesperson already has a buyer lined up for your trade-in and as a result will pay you Big Bucks for your car. Of course you need to trade it in immediately.

Stretching the term.
You want your payments under $200 per month? Any amount financed for long enough will become $200 a month. Keep an eye on the term of the loan or lease.

Pushing your hot buttons.
You have the right to remain silent, anything you say can and will be used against you. Salespeople will play on your emotions especially if you help them by revealing hot buttons.

Devalue your trade-in.
'We would give you more for your car but it needs X which cost $300, and Y which cost $500 and a Z, that's $200.' The dealer will use anything he can find to put a big price on repairing and use it to negotiate down the value of your trade-in.

The 'switch' close.
'Well Mr.Jones maybe this car is just too expensive for you. Let's look at el-cheapo over here.' This relies on your ego to prove them wrong and buy immediately.

The fear of loss close.
'You know Mrs. Jones, I have another customer looking at this car too, and it is the last one.' Like there will never be another car you like.

Value package discounts.
'You see the manufacturer already discounted the price right here on the window sticker so I don't have any room to move.' Rubbish.

Glossary

INDUSTRY TERMS

ACV -- Actual Cash Value or wholesale value

Backend -- Less obvious area of dealer profit including financing, insurance, extended warranties and other add-ons

Backdoor money -- Hidden manufacturer rebate that dealers get for selling a car

Business manager -- Salesperson in the F&I department

F&I department -- Finance and insurance department

Factory invoice -- The 'bill' that the dealer gets for a car. May not represent true cost.

Holdback -- Rebate the dealer receives on each car they buy

M.S.R.P. -- Manufacturers Suggested Retail Price

Term -- The time period of a loan

Trade difference -- Bottom line price difference of new car minus trade-in

Trade-in allowance -- Inflated figure made up of what the dealer actually buys your trade for plus the discount off the new car

Upside-down -- Owing more on a vehicle than it's worth

Table of Contents
First Things First
Before You Buy
Your Trade In
Buy or Lease
Shopping
Dealers' Cost
Negotiating the Deal
After You Buy
Warranties
Appendix