How to Negotiate the Purchase of a Used Car - Expert Tips

💡Salespeople may try to discourage cash payments because they make more profit through financing and add-ons.

🤔You don't have to lie about financing, but it's okay to be vague and uncertain to avoid pushy sales tactics.

💰The finance and insurance department is where dealerships make most of their profit.

🚙Extended warranties and service plans are often pushed during the financing process.

❌If the salesperson refuses to honor the agreed-upon price when they discover you're not financing, it's a red flag.

Should I lie about financing when buying a used car?

—It's not necessary to lie, but you can be vague and uncertain to avoid pressure from salespeople.

Why do salespeople discourage cash payments for used cars?

—Salespeople make more profit through financing and add-ons, so they try to push customers towards those options.

What can I expect in the finance and insurance department of a dealership?

—In the finance and insurance department, you may be offered extended warranties, service plans, and other add-ons for your vehicle.

How do I handle pushy sales tactics during the financing process?

—Politely decline any additional offers by saying 'no thank you'. Stick to your original agreement on the price of the vehicle.

What should I do if the salesperson refuses to honor the agreed-upon price when they find out I'm not financing?

—If the salesperson tries to increase the price or change the terms, it's a sign that they can't be trusted. Consider finding another dealer.

00:00Justin from Illinois asks about the best approach when buying a used car.

00:13The salesperson may ask about financing to maximize their profit.

00:27It's not necessary to lie about financing, but being vague can help avoid pushy sales tactics.

00:46The finance and insurance department is where dealerships make most of their profit.

00:57Extended warranties and service plans are often pushed during the financing process.