Preface: While these questions can be classified as “Car Buying Tips”, they are actually more suitable for your entertainment when shopping for a car. If you’re a die-hard negotiator, these questions will benefit you by putting your salesperson on his guard and off guard.

If you prefer a less confrontational approach to car buying, these questions can be fun, but they can create an atmosphere that won’t be beneficial.

Either way, your salesperson will remember you as the customer who “knew too much” about the car business.

General questions for new or used purchases

“How much is your dealer’s package?”

99 out of 100 dealers have a Pack. It is a value added to the cost of each vehicle that covers the general expenses of the dealer. They typically range from $500 to $1,200, but some dealers will package their cars at $2,000 or more.

Please note that this amount is non-negotiable (by law in most states). Not to be confused with dealer “retention” on new cars, which is often negotiable. If a car is traded in and is valued at $10,000 and the package is $1,000, the cost of the vehicle is $11,000 plus preparation, inspection, and reconditioning costs.

“Is this an old unit?”

Most dealers set a cutoff point when a vehicle is considered aged. Normally it is at 60, 90 or 120 days. These questions will make your seller wonder why he is asking and how his answer will affect his opinion of the vehicle, because answering either way can be positive or negative.

If it’s an older unit, the final price will likely be closer to cost with a slim markup for moving it. It’s okay. But then again, there’s a reason it’s been on the lot for such an extended period. A Chevy Tahoe on a Chevrolet lot in a big city should be sold before it gets old. A Chevy Tahoe on a Hyundai lot in a small town could be a great vehicle that didn’t have the right buyers to see it.

“How many heads have you knocked down this month?”

When a salesperson “raises their brains,” they have earned a large commission selling a vehicle for $3,000 or more over cost. These “very gross” offers put $500 or more in the seller’s pocket.

While your answer is irrelevant (if you get an answer), it’s interesting to watch how they handle the question.

“Do the sellers here make spiffs or commissions on the final profits?”

Most or all of the money a seller makes comes from their initial commission. This is normally calculated as a percentage of the vehicle’s front gross profit.

Some dealers pay the seller a little money if their customer finances or buys products on the “back end” while they are in the finance department. If the customer finances through one of the dealership’s lenders, purchases a warranty, or contracts for any other finance-paid service, the seller may or may not receive a small compensation for planting the seed.

The best time to ask this question is if/when the seller asks if you plan to finance or recommend a warranty.

“Taboo” questions about buying a new car

“Do you negotiate part of your retention?”

The answer will almost always be “no.” If not, they will say “sometimes” or “rarely”. Either way, it’s a good way to set the tone for negotiations.

The retention is the amount of money the dealer receives from the manufacturer when they sell a new vehicle. It’s “advertising” or “overhead” or “cost of sale” money as described, but in reality, it’s a profit buffer that most dealers aren’t willing to part with. The market is so competitive, and profits are declining, so unless the hold is considerable, it’s often untouchable.

“Do you get a spin for selling this car?”

This is an empty question, but it will let your salesperson know that you know too much. Many manufacturers offer “spins” to salespeople and managers for selling particular new vehicles. This is bonus money offered to encourage sellers to sell new vehicles instead of trying to switch their customers to a more profitable used vehicle. Depending on the vehicle and manufacturer, spins typically cost $50 or more and are paid directly from the manufacturer.

Used Car Buying Questions That Will Drive Your Salesman Crazy

“Can we call the previous owner or have them contact me before I make up my mind?”

We use auto, it’s kind of a reasonable request. The problem is that the seller doesn’t want to get in trouble and the previous owner probably doesn’t want to talk to you. Still, it gets asked sometimes and sellers hate it.

If you can talk to the previous owner, find out if there were any recurring problems, any accidents, and any reasons why you shouldn’t buy the car.

“Can we get the vehicle history report?”

If he says no, go away, because he’s either lying or incompetent. Again, this is a minor annoyance that can get in the way of a car deal, which is why sellers generally don’t like it.

ultimate bread

“What’s your minimum dollar?”

Most people ask their salesperson this question at some point. Most salespeople can’t answer the question without their manager. It’s usually awkward for new sellers and annoying for experienced ones.

Don’t say “cash price.” At most reputable dealerships, they make more money if you finance with them than if you pay cash. It’s no longer attractive to get cash or a check for a vehicle because the lenders the dealer uses pay all the money up front anyway, plus a little more for using them. By saying “cash price” you are telling the dealer that they won’t be making any money on the back end, so they need to make as much as they can on the vehicle itself.

Again, let me emphasize that most of these questions will not help you buy a vehicle at a better price unless you are an adversarial negotiator. They can help you have a little fun shopping for a car, which many people rank just above “root canal” on their list of least favorite activities.

I hope that helps.