5 Tricks Car Dealers Use to Take Your Money

A brand-new, zero-mileage, shiny automobile could be the third-largest purchase of your life, after your home and your children's education. Do you think you have what it takes to go into battle with the dealer and get the best deal for yourself?

If your answer is "yes," you're the exception! Most people hate the process and if you don't know how the game is played, it can cost you thousands of dollars.

We've all been to car showrooms, so we hardly need to tell you what happens there. First there's the smell of new cars. How is it that they all smell like luxurious leather even if the upholstery is vinyl? And those shiny new bodies in colors that somehow seem to match your personality, the solid thunk of the door, the smooth way the ignition turns over…and the options…

Whoaaa… Remember, the car salesman's (we'll say salesman for convenience, but women sell cars, too!) job is to get as much for the car as possible ("model price may vary from dealer to dealer"), while your goal is to pay the least amount. You should be getting ready for war.

Car salesmen have known for years how to push the buttons that will make you want the car so badly you'll be ready to drive it home that very day. They still know how to get the best of you if you let your guard down.

You heard, as we all did, that the Internet was going to cause a consumer revolution; that all of the consumer-oriented sites that let us know the prices dealers pay the manufacturers would force the dealers to be more transparent in their price quotes.

But it hasn't been that simple. The dealers now know that you've already looked up the invoice price before you visit the showroom. So, like irritating insects that develop immunities to every advance in pesticides, car dealers seem to keep finding ways to arm themselves against the new "informed" consumer by adding new hidden costs.

Don't you think it's time you learned the rules of their game? We're here to share a little straight talk on the art of the car deal: 5 tricks dealers use to get you to overpay.

Dealer Trick #1: The dealer usually doesn't make its biggest profits on the car itself.

Surprised? In most cases, the lowest profit a dealership makes is on the car itself.

That's not to say they won't take your money if you walk in and want to pay full price, but you'll be paying more than you should. The spread between what a dealer pays for a car and the "suggested" price slapped on the window by the manufacturer runs from a low of 6% for an economy model all the way up to 18% for a luxury car. That sticker price (MSRP) on the window is total fantasyland!

But the BIG money is in back-end charges. In the hands of a slick salesperson, you can find yourself paying for extras that you may or may not really need, such as an extended warranty, rust-proofing, undercoating, paint sealant, servicing and parts sales – even an antitheft system or a power sun roof if they're not in your budget.

When a particular model is very popular, the dealer will add labels such as "market availability" and "acquisition fee" – charges an eager customer will pay all too eagerly even if they add up to thousands of additional dollars.