Car Buying Guide - VIII

With this edition of the car buying guide let's discuss a huge profit center for dealers... dealer add-on's.

Off the top of my head I cannot think of another type of transaction that you will come in contact with that would have such potential to have so many hidden and extra costs involved.

The not so funny part is that when it comes to buying a car, this is an area that almost everyone has become aware of over the years, but people still sign up for stuff and fluff they don't need and didn't even want... just good salesmanship I guess.

Right off the bat when you walk onto a car dealer's lot and look at a few sticker prices, along with the standard factory sticker price there's a good chance you'll see a dealer adds sticker on the window as well.

Without getting into a protracted list... see if these ring a bell with you: paint sealant, rust protection, fabric guard, any type of security system or glass etching, floor mats, administration fees, advertising, and my personal favorites... market value mark-up.

My short answer to you is don't pay for any of this type of big profit add-on. And don't let any salesperson tell you that you have to pay for these either.

Now, having said this you may have to take a firm stand.

By in large the actual value of these add on's to the car's market value is just about nill. The sales person may tell something to the effect that they can't take these off the price of the car because they have already been 'billed to the car'.

Well then un-bill those to the car if you want to put this deal together and if you don't then I'll go somewhere else.

And be prepared to do so.

Dealers really don't like you to try to get them to remove their documentation or administrative fees.

And why should they? This is pure unadulterated profit for the dealer.

Most will push back hard on this one, and tell you that this is not negotiable...but I'm telling you... you don't need to pay it.

From a salesperson's perspective the tangible items such as the floor mats, the security system, paint sealant, fabric guard, represent various 'spiffs'.

This means that if they can sell you these overpriced and undervalued items, they will get a small cash bonus from the dealer. For you the potential buyer they should only represent additional costs.

And you certainly don't want to be rolling any of this into your financing when you buy the car!

Be prepared to take a hard line.

Stand your ground.

Leave the car deal on the table and walk if you must... but don't buy.

After all... its about your money, not theirs.

I cover this in detail and whole bunch more in my eBook the complete car buying guide when I come clean with my years and experience in the car business.