The Car Dealership's BIGGEST Secret -- Revealed!

By Michael Royce
Consumer advocate, former car salesman

Congratulations. You've successfully negotiated the purchase price of your new or used car or truck. You've made a great deal.

Next you're ushered into the dealership's "Business Office" - also known as the "F&I Office" for "Finance and Insurance". You're introduced to the Business Manager, a pleasant well-groomed woman (or man) who congratulates you on your purchase. She reassures you that you made a wise decision and that the tough part is over so now you can relax. You sit and breathe a welcome sigh of relief.

As you go through the formalities of signing the various forms and agreements, she casually explains to you your financing terms, your interest rate and other details. Along the way, she offers you several "extras" that will add "mere pennies a day" to your monthly payments. Among these items might be an Extended Service Warranty, Paint and Fabric Protection, Rustproofing, Undercoating, Alarm System, Window Tinting, and maybe even Life, Health, or Disability Insurance.

You're relaxed. The negotiating is over. And these "extras" sound really worthwhile. Besides, you like this Business Manager. She's so darn nice. So you agree to the interest rate and financing terms. You purchase the Extended Service Warranty. You even purchase the Paint and Fabric Protection.

BAM! You just put a chunk of money in her purse. Why? Because the biggest secret that the dealership doesn't want you to know is this:

At most dealerships, the "Business Manager" is a salesperson working on commission.

Almost everything the "Business Manager" offers you - extended warranty, paint and fabric protection, rustproofing, even your interest rate - may be negotiable.
Of course, you probably didn't know that. Most car buyers don't. And certainly no one at the dealership is going to tell you.

The plain fact is:

Car dealerships often make more profit from the financing of the vehicle and the sale of "extras" sold in the Business Office than from the actual sale of the vehicle itself.

So what to do? No worries, my friend. Here are some tips for dealing effectively with the car dealership's "Business Manager":

1. Don't let your guard down.
Just because the Business Manager may seem friendlier and nicer than the car salesman, it doesn't mean the deal is over once you enter the Business Office. It isn't. The deal doesn't conclude until you drive the vehicle off the dealership's lot. So despite how friendly the Business Manager may seem, remember that she's there to make as much money as possible for herself and the dealership.

2. Arrange your financing before you go to the dealership.
Since the Business Manager works on commission, she may try to trap you in a higher-than-necessary interest rate so she can maximize her commission. Avoid the dealership games by arranging your financing before you set foot in the dealership to buy. Apply for an auto loan at your bank or credit union. Apply also at reliable online sources such as MyAutoLoan. Once at the dealership, compare your best offer with the dealership's offer and decide which is the best deal for you.

3. Try to negotiate the interest rate.
If you were unable to qualify for financing from any bank, credit union or online financier, then you'll probably have to go with dealership financing. And your auto loan will probably have a relatively high interest rate since you are considered a "credit risk." Nonetheless, if you feel that the interest rate that the Business Manager offers you is unreasonably high, ask her to lower it.

4. Think twice about the "extras."
Each "extra" you purchase means another commission to the Business Manager. But do you really need these "extras"? Probably not. For example, you'll certainly be offered an Extended Service Warranty. All new cars and trucks come with comprehensive warranties so you don't need to buy another one. As for Paint Protection, you can apply it yourself by buying any inexpensive "over-the-counter" polymer sealant car wax. You can apply Fabric Protection yourself by buying a can of Scotchgard. You may be able to purchase Window Tinting, Alarm Systems, Pinstriping and other after-market items cheaper on your own. Rustproofing is usually applied in the factory so you certainly don't need to pay twice for it.

5. Take the time to learn.
Be sure to get the necessary facts before you go to the dealership to buy. Take the time to do your research. It'll pay off big time in the long run.

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