A CAR dealer with over 43 years of experience has revealed the five questions salesmen hate you asking.
Father and son team Ray and Zach Shefska from CarEdge also explained how you can spot a dodgy sale from a mile away.
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Speaking on their YouTube channel, they took viewers through some top tips to keep costs down when buying a new or used motor.
Question 1: What is the out-the-door price?
The out-the-door (OTD) price is exactly what it sounds like – the total price you will be paying to get the car out the door of the dealership and on the road.
It includes the cost of the car itself as well as any taxes or extra charges added on to give you a definitive final total.
This can save the head spin of adding up any number of fees slapped onto the end of your bill before signing any contracts.
It also allows direct comparison between the OTD rate and the actual value of the vehicle.
Make sure to do your homework on the make and model you like before entering negotiations and get an independent valuation in advance.
This is particularly relevant if you are buying a car on finance, as many sales reps may try and focus you on a low monthly payment figure rather than the overall sum you’ll be paying.
If there is a significant disparity between the value of the car and the OTD price, it may be worth firing off Ray’s second question.
Question 2: Why do I have to pay for these?
Ray said: “In today’s world, there are a lot of dealer-installed accessories to help build up the profit on car deals.
“A lot of them are overpriced, overvalued accessories.
“The salesperson is going to tell you ‘We put that on all cars’.
“But I didn’t ask for it…always ask ‘why do I have to pay for the accessories that I didn’t want and I didn’t ask for?'”
Additional costs like these can include things like paint protection, window treatments and anti-theft devices.
These can add hundreds, or even thousands, onto your final bill so make sure to query any charges you don’t recognise or didn’t want.
Question 3: What is the MSRP?
The manufacturer’s suggested retail price (MSRP), also commonly known as the recommended retail price (RRP), is a vital basis for the two questions above.
This is the base price that the company that made the car asks dealers to sell it for.
In practical terms, the MSRP is the OTD minus all fees, tax and extra charges.
Knowing the difference between the MSRP and OTD can help pick out some of the products you might seek to query through question 2.
Watch out in particular for charges added on by the distributor (the company that ships the car from the manufacturer to the dealer) as these are often non-negotiable.
Question 4: What is the buy rate
This specifically applies to when you are buying a car on a finance deal rather than outright.
The latest figures from the Finance and Leasing Association found that, in 2023, finance was used in over two million UK car deals, making up roughly 80% of all sales.
As such it’s important to be able to navigate the negotiation of financial products as part of the car-buying process.
A key part of this is understanding the way your deal is affected by interest rates.
Ray urged drivers to ask what the buy rate is on their loan.
This is the interest rate at which the dealership bought the loan from a financial institution (usually a bank).
Dealers will then sell the loan on to customers at a higher interest rate, known as the sell rate, thus receiving a profit on the loan.
Always make sure to ask what the buy rate is and compare it to the rate being offered to you.
If there is a large gap between the two, ask why that is and see if you can negotiate a lower rate on your monthly payments.
This could save you hundreds every year of your finance agreement.
