Last time around we talked about some general strategies buyers use to get the upper hand in negotiating the price of a car. Most of them are pretty benign. But this next one is absolutely the most infuriating strategy I’ve ever come across. It wastes everyone’s time. It almost never results in a buyer getting a better deal. However, it is an excellent way to kill four hours if you have nothing better to do.
In order for you to understand how unethical and downright maddening this can be, I first have to explain a few things. As a salesman, my primary job is to get a commitment. Once the customers sit down at my desk to “work numbers,” or talk price, my job is to get them to commit to buying my car — in writing — at some number. It doesn’t have to be the final number, or even a realistic one — although it’s better to start with a realistic goal — it just has to be a commitment. That is my mission when negotiating: Get the Commitment.
Kung Fu Snake Style, or The False Commitment
This particular story happened to another salesman. If it had happened to me I would have kicked the guy out. I just don’t have the patience. One Saturday a young man came in looking for a used truck. I’ll call him Brad. The salesman who sits next to me — I’ll call him Trevon — helped him pick out a truck, test drove it with him, then sat Brad down at his desk. After a little discussion, Trevon got Brad to agree to buy our truck if the price was $26,000 “out the door” (including taxes and fees). The way a salesman gets a commitment is like this: you write it down on paper and get the customer to sign it.
“All right, Brad,” Trevon began, writing as he spoke, “Just so I can make sure we’re both on the same page, what you’re saying is, you‘ll buy our truck today if I can get you to $26,000 out the door. Is that correct?” “Yes,” Brad replied. “If you can do that I’ll take it home.” “Great! Give me your okay right there.” Trevon handed Brad a pen and the customer signed his name. At that point it was understood by everyone that the customer had just made a commitment to buy a truck if his conditions were met. If we couldn’t get to 26K, he would have no obligation to buy.
Trevon takes the commitment to the desk, and after a little back and forth with Brad they come to an agreement that’s pretty close to $26,000 out the door. Brad is happy. So, if you’re like me you’re probably thinking “This is a car deal, right?”
Well, no.
Not in the case of this particular customer. After the dealership reached Brad’s target price, Brad said he needed to leave and “talk to his bank first” to see what kind of interest rate he could get. He’d just broken his first commitment. He had agreed to buy the truck for $26,000 — and never said a word about rate. Now he was moving the goalposts.
Wisely, Trevon asked the Business Manager to “take a T.O.” (talk to the customer). The Business Manager asked Brad what kind of rate he hoped to get, and Brad said “I’d like to get something under 4.9, if possible.” “So, if we could get you under 4.9%,” the Business Manager asked, “Would you buy our truck today?” “Oh yeah, sure,” Brad replied. He had just made his second commitment of the day. “Get a customer statement,” the Business Manager told Trevon.
Half an hour later the Business Manager returned with good news. He had obtained a rate of 3.9% for Brad, putting his monthly payment even lower than expected. But when the manager pushed the buyer’s order across the table for Brad to sign, he started backing up. “Hold on,” he said. “I need a minute to talk to my girlfriend about this.” Brad had now broken his second commitment.
Trevon and the manager stood back and let Brad walk outside, where he got on his cellphone and proceeded to walk around the new pick-up truck for the next half hour, talking to his girlfriend. No one approached him or tried to pressure him during this time. Finally, he came back inside, complaining about the plastic liner that was in the bed. “I never have liked those kinds of liners,” Brad said. “If I bought this truck I’d have to put in a spray-in liner, and that costs a lot.” He was moving the bar again. First came price. Then rate. And now, a bedliner. So Trevon said “I know we can’t throw in a bedliner, Brad. But what if we could get you one at cost? Would that work for you?” Brad thought about it a moment and said “Yeah, that would work.” This was his third commitment.
Trevon, thinking they he was finally about to sell a truck (after investing four hours of his time on a busy Saturday afternoon), hands Brad the pen to sign. And then Brad leans back in his chair and falls silent. We’re all on tenterhooks now, wondering what’s going to happen next. “You know . . . ,” Brad begins. “I just remembered I’m planning on buying a boat in a few months, and I’m not sure if the hitch on there will be big enough. I think I may need a Class IV.”
At this point I would have lost it. I would have told Brad he was free to buy any damn kind of hitch he wanted to after he buys my truck, but first he has to buy my truck. But Trevon is not like me. He’s a nice guy and needed the sale. So he spent another thirty minutes helping Brad look up the kind of boat he wanted, and showing him that a Class III hitch is more than adequate for the weight he’s planning to pull. But Brad won’t sign up unless we give him a new hitch. He’s made three commitments at this point, and reneged on all three, so the Business Manager shook his hand and told him to have a nice day.
If you’re having trouble understanding why this is so wrong, just turn it around and look at it this way. What if a dealership promised to sell you a truck for a certain price, and then, when you come in to do paperwork, you find out they’ve raised their price and added several different conditions? Wouldn’t that make you mad? It would me.
So here’s my advice. Don’t make any commitment to buy until you’re ready to buy. The time for second thoughts or asking for more stuff is before the commitment is made, not after. And if a salesman or a dealership makes a commitment to you, get it in writing and hold them to it.
If we all keep our word, buying cars will be a lot easier.
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