I don’t know anything more contentious and unpleasant than buying a new car. The purchase of a car, be it new or used, is one of the more distasteful activities in which adults involve themselves. A buyer (us) enters a world of unknowns, the auto dealership (them), where he is suddenly at a huge disadvantage. He endures a barrage of claims, probing questions, and pointed suggestions from a stranger, the salesperson, who boasts that he, or she, is going to give you a deal you’d be a “fool” to refuse. All the while, you have no idea whether you’re being taken advantage of or saving thousands of dollars. Only the dealer knows.
An auto buyer cannot walk into a showroom, or just browse the lot, without 2, 3, or 4 different individuals coming up to him with some sort of “come on.” You may just be shopping, but you’re not given the chance to look around without being badgered. When you’re thinking about buying a new car, you would like to have some privacy and time to check out the vehicle’s options uninterrupted by idle banter. You’d love to sit in the driver’s seat, check out the trunk, and study the instrument panel without having to answer questions or give opinions.
The unique thing about purchasing a car is it is one of the few transactions between buyer and seller that involves a bargaining (or bickering) chip. You come to the dealer with an old car you want to get rid of and trade it in for a new car. The trade-in value of your old car reduces the cost of the new car. That’s where the water gets muddy because immediately you and the salesperson become adversaries, combatants of sort. The buyer wants to get the most for his trade in and the lowest price for his new car, while the salesperson wants to “make a living,” by earning the highest commission possible.
The buyer, us, is at the mercy of the dealership and its salespeople (them). They’re holding all the cards. Unless you’re a shrewd buyer who researches large purchases, you’re at a big disadvantage. The salesman has inside information you don’t have. He knows the cost of the new car down to the penny, and exactly how much your trade-in is worth. The dealer knows how much the new car costs, and how much profit he expects to make. The salesman knows the numbers he needs to hit to earn the maximum commission. They hold a negotiating edge because unless he’s been extremely diligent in his research, the buyer enters a virtual tug-of-war with blind ambition.
Now, the adversaries’ personalities emerge and the antics begin. The salesman becomes a secretive guy who can’t make a decision himself. He has to leave several times to consult with his “sales manager” to get a deal ok’d. The buyer transforms from a nice guy into a tough negotiator with a chip on his shoulder. One guy says, “Gee, you’re killing me!” While the other says “you cannot be serious.” Both parties get angry, behave rudely, and make comments they would never make elsewhere. The buyer, attempting to get the lowest price, may abruptly get up and leave the negotiation, hoping the salesman will cave to his demand. Nice guys finish last, or get taken advantage of, so the customer tries to gain an upper edge by being aggressive, sharp-tongued, and even belligerent. The salesperson becomes stubborn because he has “a family to feed.”
We’ve all been through scenarios like this. Back and forth goes the salesperson. The buyer stands his ground but keeps trying to get a lower price. Insults may be hurled. Accusations may be made. Comments are made like “if I sell it to you for that, I’ll be taking a loss!” “You need to be moving some steel.” “My car is worth at least a $1000 more!” “I’m leaving! Call me when you decide you want to sell this car!” And all this happens just because you wanted to see what the new models look like. You came to the dealer just to look; then you got the fever to buy a car. Now you’re deeply committed, but having second thoughts. Can you afford it?Can you cancel the deal? Can I get my deposit back? What have I gotten myself in to? And if a deal is reached, the chicanery pulled by the finance manager is a whole other issue.
I do think “new car fever” is a real thing. I’ve heard it said that once the idea of buying a new car gets in your head, within two weeks the majority of people will give in and buy a car. I know because it has happened to me on several occasions. Fortunately, the cars of today are built to last so you don’t have to subject yourself to the loathsome buying process very often. But every time you do, the routine is just the same. Why can’t someone come up with a better buying process? There are a lot of programs that sell cars for a fixed price without a trade-in. What you do with your old car is up to you. It’s value doesn’t figure in to the price of the new car. But skeptics like me still wonder if I’m paying too much.
The auto business (them) has done a masterful job of hiding the true cost of new cars from the buying public (us). Reference standards like “Kelly Blue Book” and “Edmunds” are helpful, but there are so many variables in auto valuation that even they give a wide range of values for new and used cars. Used car valuation is very subjective, but is very important to buyers.
The next time you buy a car, you will be older, more mature, mellower, and probably richer. Your demeanor will be less adversarial so it won’t upset you as badly or monetarily as it used to. But you still know “in your heart” that you’re paying too much for that car!
William M. Gilkison MD
