When I read this article and started thinking of all the people I wanted to email it too, the list was so long, I figured I’d better just link to it from a blog post. It’s called Confessions of a Car Salesman.
Basically, the author got a job with Edmunds and they immediately gave him an undercover assignment. Instead of coming in to the Edmunds office, he got a job as a car salesman, so he could report on their practices from the inside. He worked for a couple of weeks at a high pressure lot, then switched to a no-haggle lot.
Here’s one small sample:
The process begins by asking the customer how much they want for a monthly payment. Usually, they say, about $300. “Then, you just say, ‘$300… up to?’ And they’ll say, ‘Well, $350.’ Now they’ve just bumped themselves $50 a month. That’s huge.” You then fill in $350 under the monthly payment box.
Michael said you could use the “up to” trick with the down payment too. “If Mr. Customer says he wants to put down $2000, you say, “Up to?” And he’ll probably bump himself up to $2500.” Michael then wrote $2,500 in the down payment box of the 4-square worksheet.
I later found out this little phrase “Up to?” was a joke around the dealership. When salesmen or women passed each other in the hallways, they would say, “Up to?” and break out laughing.
The article is long but really interesting!