Here’s the script for the “When Car Dealers Offer In Round 3” video:

Now to this point, you expressed your true intentions and have filled out your credit application in full if financing.  Now it’s time for the car dealer’s offer to zero in on an agreement.

You’ve done an amazing job getting to this point, and it usually takes 3 or 4 go-arounds with the sales manager to move forward.

It’s at this stage of the negotiation that you’ll get to concrete numbers.  The desk and management team are probably tiring of the back and forth and will want to get you out of there with a car ASAP.  Here they’ll offer most of what you want but will hold something closer to their chest to maximize profit.

Maybe they’ll say that they can’t get to $11,000 on your trade but can get to $10,500.  Maybe you get what you want on the trade, but they can’t get a prime rate, so your payment will be like $550 a month instead of $500.  Maybe they’re still trying to maximize value on dealer add-ons

Stick to your guns on the car dealer’s offer.  You know in black and white what your trade is worth at a fair price, giving room for the car dealers offer to resell it at a profit.  The dealer is getting a fair but not amazing price on their truck.  You have a nice clean deal that gives you a great discount and allows the dealership to stay in business without screwing you over.  This is a win-win situation so far.

car dealers offer

Your offer at $500 a month was pretty aggressive, and you knew that.  When they come back at $550, don’t be surprised but be reasonable.  Just ask what their interest rate is and plug it into the calculator.

Dealers may lie sometimes, but math never does.  If they balk at telling you the rate, just tell them to stop playing games with you, say, “Do you want to sell a car today or not?”.  This will expose them if they’re trying to pad your payments and give more “leg” to the Finance Manager.

They know you’re a qualified buyer at this point, so remind them that you have other options…unless you’re looking at an exotic car, you likely have many options.  If the rate is bad compared to what you have already, tell them they’ll have to do better.  They can make a bit on your purchase and your trade, but don’t let them make a grand on your interest rate by padding it too much.

If you’re leasing, ask them about the money factor they’re using to calculate your lease fee.  A money factor is a five-digit decimal with the lower, the better.  As a general rule of thumb, if the first three digits are zero, you have a great money factor.  If the first two are zero and the next is two or less, than it’s a decent money factor.  Ultimately you can take the money factor that they give you and multiply it by 2,400 to figure what the corresponding annual percentage rate will be.

For example, if the money factor is 0.00211, then your APR equates to a hair over 5%.

Write your final payment or price on the paper.  Write “FINAL OFFER” in bold letters and hand it back with confidence that they will say yes this time.

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