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The car dealer has controlled the process of buying a car for many years as a way to get you to spend more money. The car secrets for dealers that follow can be a big help when you buy car at the dealer. When you know these car buying secrets you will being scammed.

One of the best kept car dealer secrets is that the car buyer often buys a car with emotion instead of logic. The buyer of a new car gets excited when they are buying a car. They unintentionally let the car dealer make more profit when they buy on an emotional level. The car buyer that uses logic and treats buying a car as a business transaction will be money ahead. When you let down your guard and make buying selections with your emotions the dealer will happily help you out of your money.

The next secret of car dealers is that they have a tendency to increase your finance rate of interest. When you finance a car or car dealer financing scams the car dealer the lender will approve your loan with one interest rate, but charge you a higher interest rate. The amount that the additional interest rate could be from a quarter of a percentage point and up to several points. The interest rate that the dealer charges you over the amount that the lender authorizes could be a very substantial amount for the dealer. The best way to avoid this car dealer trick is to get a car loan quote from your bank. Then compare the rates of both sources and choose the best.

The true price of a new car after adjustments is kept secret from almost everyone at the dealership. The car dealers invoice amount is very easy to find with a little research. The invoice price on a car is not actually how much the dealer pays, they pay less than invoice. One way that the dealer pays less for a car is called dealer hold-back. The car dealer holback amount can be anywhere from two percent and up to five percent. This is often called secret money because the auto dealer gets money from the manufacturer to sell you a car. This amount usually is around 3 percent, so on a $20,000 car that is about $600.

Wait there is more; there are times throughout the year that the car dealer can participate in manufacturer’s contests. The car makers contest could give the dealer extra discounts depending the amount of cars they sell. These amounts could be anywhere from a few hundred to a couple thousand depending on the manufacturer. So many times a year the manufacturer will have sales contests that may last up to a couple of months.

There are tons are secrets that car dealers have, but I have given you the ones that can save you the most money. Many buyers have car buying questions about these car dealer secrets and you will find a wealth of information on the Internet. You can spend some time doing car buying research online and you will save some money too. As nice and helpful as the car salesman seems to be they are trained to do whatever they can to sell a car. The car salesman training the they get teaches them to maximize every car sale they make.