Strategies for Smart Car Buyers^SM

Dealership Flow Chart: Know What to Expect

This monthly column presents crucial, stand-alone car-buying strategies to help you avoid dealership tricks and traps and get the best price on your next car.

What if you were in the middle of a fight and you knew the other guy was about to throw a right hook? If you knew what was coming, it would be easy to duck or block the punch.

Negotiating is the same way. You try to anticipate your opponent's next move so you can be ready for it.

While most consumers know it's important to prepare for car shopping, they don't always know what to prepare for and in what order it will happen. In most cases, the customers see the salesman as the enemy and direct all their energy to countering his efforts to inflate the price. However, the salesman is only a part of a bigger picture. Once you understand the way the dealership tries to work you, you will know how to defend yourself and get the best deal.

Before we go much further, we should point out that this article will outline the process used by the shopper who visits the dealership in person. If you decide to become an Internet shopper — and we strongly recommend you take this route — you will save time, reduce stress and probably get a better deal. However, people are very connected to the dealership experience, so here's a condensed look at how to safely navigate these shark-filled waters.

Phase One: Test-Drive

Time required: At least one hour

Location: Car lot

Salesman's goal: To get you in a car — any car.

Your goal: To thoroughly test-drive the car and select the right vehicle for you.

Key points: Don't hurry the test-drive. Decide if you trust your salesman and want to enter into negotiations.

More information: How to test-drive a car


Phase Two: Negotiating

Time required: One to two hours, longer if a trade-in is involved

Location: Sales office

Salesman's goal: Get you to buy at the highest price.

Your goal: To get the car at Edmunds.com's True Market Value^SM or below.

Key points: Don't be trapped in the sales office — move around. Don't be afraid to walk away. Make sure you take advantage of all incentives and rebates. Ask for an "out the door" price before you agree to the deal.

More information: Negotiating 101


Phase Three: Closing the Deal

Time required: One hour (longer on weekends)

Location: Finance and insurance office

Finance manager's goal: Improve the deal, sell additional products.

Your goal: Ensure that all negotiated elements of the deal are correctly put into the contract.

Key points: Question the sudden appearance of extra charges and fees. Review contract carefully before signing. Know what each form is that you are signing.

More information: Closing the deal


Phase Four: Taking Delivery

Time required: 30 minutes

Location: Car lot

Salesman's goal: Get you to sign and take possession of the car.

Your goal: Inspect the car for damage and make sure all promised equipment is included (floor mats, DVD headphones, additional key fobs).

Key points: Inspect the car in good light. Make sure car has a full tank of gas.

More information: Inspecting and taking possession of your new car

For this, and other buying and leasing strategies, pick up a copy of Strategies for Smart Car Buyers, by the editors at Edmunds.com.