The Four-Letter Word You Should Never Say When Buying A Car

When you walk onto a car lot, keep your feelings to yourself. Do not use the four-letter word 'love', as in saying, "I love this car" while still talking about the price. This is because the salesperson will know you're attached and may push for a higher deal. In 2021, NerdWallet warned against showing too much interest before you agree on a price, since it puts you at a disadvantage in the negotiation, especially as some common car-buying myths can make you overshare.

Instead, stay calm and act like you have choices, even if you've already picked your favorite car. The key is to appear neutral. Edmunds recommends you gather written quotes from a few dealers and make them all compete for your business. This approach, explained in its Negotiating 101, helps you get better offers because dealers know you're not locked in. Hold back your excitement and keep things professional until the price is set. This is one thing people always get wrong about buying a car. That, as well as not knowing when to buy a car, new, used, or leased.

Start with simple process language that keeps the focus on the numbers, not your feelings. Ask every dealer for an out-the-door (OTD) price and a full list of all fees. For example, say, "I'm getting OTD quotes from more than one store. Please list all documents, prep, and add-on fees." Follow up with, "I'll make my choice after I look at each written offer." This is good advice from the Federal Trade Commission (FTC), which recommends obtaining out-the-door prices in writing before visiting the showroom. Edmunds also suggests that using competing written offers is one of the best ways to get a lower price. This way, you keep the pressure on the price and avoid paying more than you should.

In addition, keep each part of the deal separate to control the numbers. Always start by talking about the price of the car only. Do not mention a monthly payment goal, because a dealer can simply stretch your loan longer to hit that number, costing you more in the end. Only after the sale amount is set should you discuss loan terms or your own bank's pre-approval. This order protects you from the 'four-square' tactic, where the dealer mixes price, monthly payment, trade-in, and down payment to confuse you or hide costs. If a dealer will not keep things separate, walk away and shop elsewhere.

There are additional things you shouldn't say when purchasing a car. For instance, Consumer Reports warns that when you focus only on a monthly payment, the dealer can manipulate the numbers and conceal the actual total price. Also, if you mention your trade-in before locking down the price of the car, you give the dealer room to shift numbers around and protect its profit. Hence, always get the car price set before you bring up your trade-in. Say, "We'll handle my current car after we settle the price."

Similarly, do not tell your dealer you intend to pay in cash. Many dealerships make extra profit by arranging loans or selling add-ons. If you say you will pay cash before you see the final buyer's order, they may be less willing to lower the price. Wait until you agree on the full out-the-door price, with no extras. Then, say, "Show me the offer with no add-ons, I'll confirm payment at signing." If the dealer adds extras you didn't agree to, the Federal Trade Commission says you can refuse. Dealers cannot sneak add-ons into the contract or claim they're required. Always check that every line matches your written quote before you sign. If it doesn't, walk away. Know your total cost, not just a monthly figure, before you say yes.