After years of high car prices and demand, the car market in 2024 is projected by Cox Automotive’s Forecast to stabilize. Though loan rates are predicted to remain high, this year they are also expected to come down from record heights. According to a report from Yahoo Finance, new car prices fell for most of 2023, and new car prices dropped 3.5% from record highs in December 2022. However, prices are still higher than before the pandemic. According to the Bureau of Labor Statistics, used car prices dropped by 5.6% from 2022 to 2023, but they are still 40% more expensive than they were in February of 2020.
The first step for any consumer looking to purchase a car is to do research. Some sources will explain which cars to avoid, while others will share how to avoid being swindled on a deal.
Recently, a car expert, Bill (@billythecarkid), went viral after he explained how to bypass the car salesperson to ensure that attempts to get a better deal aren’t dismissed out of hand. His video was viewed over 65,000 times as of publication.
Bill filmed his video while sitting in his car. “OK, today’s tip is actually gonna really piss your salesperson off, but it’s probably going to save you a little bit of money if you pull it off right,” he began.
His advice centered around getting a discount by working around the salesperson. According to Bill, salespersons are “very reluctant to give you a discount” because they make their money from “the front-end profit margin.” For these reasons, Bill said a car salesperson is motivated to keep the “price as high as possible, so they can make the most on their paycheck per sale.”
However, Bill claim is that a dealership has other incentives. These include customers “financing with them, possibly buying a warranty,” and getting “the servicing done at their dealership.” These add-ons can lead to a buyer into “being a lifetime customer,” which are “things that the sales manager and the general manager would put a little bit more value on.”
Bill warns viewers that these offers won’t entice the car salesperson, and that they may try to thwart a potential discount.
“A lot of times when you ask for a discount to your salesperson they don’t even bring it to their sales manager because they already know they aren’t going to make any money on that, so they just tell you no and see what you say,” he explained.
Instead of trying to make a deal with the salesperson, Bill suggested that you “simply ask to speak to the manager.” His reasons are simple. By offering to continue business with the dealership long after the sale, the customer is promising a greater return than the money lost on a small discount. He also added that bringing in a trade will help sweeten the pot for the dealership.
“That’s a whole other transaction they get to have with somebody else that they’re gonna be making some more money on. So if you’re bringing a trade to the table … that should be worth something to your dealership to give you a little discount. So, don’t let your salesman fool you,” he said.
@billythecarkid Quick monwy saving tip! #carbuyingtips #carbuyingsecrets #carbuyingmadeeasy #carbuyingadvice #buyingacar #carforsale #changeit #carbuyingsecrets #howtobuyacar #trueprice ♬ Drake style/HIPHOP beat(1491552) – Burning Man
Some car salespersons in the comments section added their own two cents.
“I sold used cars. My goal was to get the right car to right buyer. I of course wanted to make money, but I found I made more money by selling more cars so wi often sold cars for less,” one wrote.
“As a salesman we get paid on the back end,” a second replied.
A third viewer added, “Bottom line is the finance manager has the final say.”
Fourth salesperson countered, “Oh no.. please don’t get my manager.. who will tell me exactly what I told you bc we talk about what discounts we can do each morning.. which is why I don’t need to bring this to my manager..”
The Daily Dot reached out to Bill via email for further comment.
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