Buying a car can be both an exciting and nerve-wracking experience. Whether it’s your first car or you’re upgrading to a newer model, stepping into a dealership can feel overwhelming. Many buyers feel the pressure of negotiating and navigating through complicated sales tactics. At Get Drivers Ed, we want our students and readers to be informed not only about safe driving but also about how to make smart decisions when purchasing a car. In this blog, we’ll uncover 5 common car dealership tricks that buyers should watch out for and how to handle them.
When you’re armed with knowledge, you can make confident, informed decisions that protect your wallet and ensure you get the best deal.
1. The “4-Square” Tactic
How the 4-Square Works
One of the most common sales tactics used by dealerships is the 4-square worksheet. This worksheet is divided into four sections: purchase price, trade-in value, down payment, and monthly payments. While it may seem like an organized way to structure the deal, it’s actually designed to distract you from the overall cost of the car and steer the conversation toward a number that works in the dealership's favor—usually your monthly payment.
The salesperson might try to negotiate based on monthly payments rather than the total cost of the car. They may offer a low monthly payment but extend the loan term, which means you end up paying significantly more in interest over time.
How to Handle It
To avoid falling into this trap, focus on the total price of the car, not just the monthly payment. Know how much the car is worth, and negotiate based on that figure. At Get Drivers Ed, we encourage buyers to be prepared before visiting a dealership by researching the fair market value of the car they want to buy. Use online tools like Kelley Blue Book to get an accurate estimate of the vehicle’s value.
2. The "Today-Only" Offer
Why It’s a Trick
Another common tactic is creating a false sense of urgency by claiming the deal is only available for that day. Salespeople may tell you that the offer expires at the end of the day or that someone else is about to buy the car, pushing you to make a rushed decision. This "now or never" pressure can cloud your judgment and lead to impulse buying, often at unfavorable terms.
How to Handle It
Never feel rushed to make a purchase decision, especially when it comes to something as significant as a car. Dealerships are almost always willing to negotiate, and that “today-only” deal will likely still be available tomorrow. If you need time to think, take it. Walk away if you feel pressured, and remember that you can always come back later. At Get Drivers Ed, we remind our readers that it’s essential to buy a car on your own terms and timeline, not the dealership’s.
3. The Trade-In Lowball
What Happens in the Lowball Tactic
If you're trading in your current vehicle as part of your new car purchase, beware of the lowball trade-in offer. Dealerships often give buyers less than what their trade-in is worth to increase their profit margin. They may underplay the value of your trade-in and focus more on the price of the new car, thinking you’ll be too focused on that to notice.
This is especially common if you haven’t done your homework on the value of your trade-in.
How to Handle It
Before going to the dealership, get an appraisal of your car’s trade-in value from multiple sources, including Kelley Blue Book and other online car valuation tools. This will give you a ballpark figure of what your car is worth. Don’t hesitate to negotiate the trade-in offer, and if the dealership is unwilling to meet your expectations, consider selling your car privately for a better price.
At Get Drivers Ed, we encourage buyers to know the value of their trade-in beforehand and never settle for less than a fair price.
4. The Add-On Sales Pitch
What Are Add-Ons?
Once you’ve agreed on the price of the car, the dealership might try to sell you various add-ons during the financing process. These could include extended warranties, paint protection, GAP insurance, tire protection plans, and more. While some of these add-ons might seem appealing, they can also be overpriced or unnecessary.
The dealership's finance manager may bundle these add-ons into your financing without clearly explaining their cost, which can drive up your monthly payments or the overall cost of the car.
How to Handle It
Before visiting the dealership, research which add-ons are worth considering. For example, an extended warranty may be beneficial for some buyers, but not everyone needs one. If you're interested in an add-on, ask for the exact cost and decide if it’s something you truly need. Don't feel obligated to accept every option the dealership offers.
At Get Drivers Ed, we stress the importance of knowing which additional products offer genuine value. Always ask for the cost of each item separately, and don’t hesitate to decline add-ons that you don’t need.
5. The "Bait and Switch" Tactic
How the Bait and Switch Works
The "bait and switch" is a tactic where a dealership advertises a car at a very attractive price, only for you to arrive and find that the car is "no longer available" or has "just been sold." They then try to sell you a different vehicle, often at a higher price or with fewer desirable features. This tactic is used to lure buyers in with the promise of a good deal, only to pressure them into buying something else.
How to Handle It
If you see a deal that seems too good to be true, be cautious. Before going to the dealership, call ahead to confirm that the car is still available and ask for a written quote if possible. If you arrive and the vehicle is no longer available, don’t feel pressured to settle for something else. You have the right to walk away and find a deal that suits your needs and budget.
At Get Drivers Ed, we encourage you to stay firm on your preferences and budget, even if the dealership tries to push you toward a more expensive option.
Conclusion: Be Prepared and Make Smart Decisions
Buying a car is a significant investment, and it’s essential to be prepared and knowledgeable before stepping into a dealership. Car dealerships use various tactics to increase their profit margins, but with the right knowledge, you can protect yourself from these tricks. From understanding the 4-square method to avoiding the pressure of "today-only" deals, staying informed will help you get the best deal possible.
At Get Drivers Ed, we believe that driver education goes beyond just learning how to drive—it’s about empowering drivers with the knowledge they need to make smart decisions both on and off the road. If you're looking to enhance your driving knowledge, whether through safe driving practices or becoming a more informed car buyer, enroll in our online driver education courses today!
Take control of your car-buying experience with Get Drivers Ed—your road to confident and knowledgeable driving starts here!