An elementary question ... - colin

Negotiating to buy a brannie, I've noticed that the first question most dealers seem to ask is "What's your budget?".

It seems a reasonable query, doesn't it, but I've felt slightly uncomfortable, wondering if there's a hidden agenda.

Can someone tell this tiro if there's any reason why I shouldn't divulge?
Re: An elementary question ... - David Woollard

If you divulge this as a lump sum it is then usually translated into a monthly payment you feel "comfortable" with. Then the term is craftily extended so that roughly the same payment will enable them to say " I think we can get you into the 36V Goggomobile SuperSX for just another £45 monthly over your original budget, but it's worth it for those chrome cup holders".

No you're not "getting me into" anything, it's my cash, my P/ex and me who's going to be paying it off monthly slower than it depreciates!

Sales patter....Oh dear.

Sorry HJ.

Re: An elementary question ... - Kev
Following on from that, always take a calculator and work out what all those small extras are doing to the cost of your car.
Re: An elementary question ... - Keith
"I've noticed that the first question most dealers seem to ask is "What's your budget?"."

This puts the dealer in control. Much better to know exactly what you want before approaching the dealer and stick to it. Get brochures, use web sites (incl. HJ of course) and, look at finance offers available e.g. Tesco, Egg etc. See if dealer can match or beat independant finance offers (unlikely but it can happen, particularly if manufacturers are subsidising finance). Lots of people put themselves in the hands of the salesman and thus get ripped off. Also, be sure of what discount you want. Don't allow p/ex to blur the picture. Negotiate and agree terms for the new car and then introduce the p/ex. That way, you will get a true valuation for the p/ex which will probably convince you that you'd do better to sell privately. Remember that the salesman's job is to make as much money out of you as he can - in the nicest possible way, of course).

Sorry for the cynicism - born out of many years of car buying. By the way, what's a 'brannie' ?
Re: An elementary question ... - Andrew Bairsto
A new car I suppose
Re: An elementary question ... - Chris
A brannie? A horse, surely.

Re: An elementary question ... - John Slaughter

The others have given excellent explanations of how the dealer gets you to , or above, your budget.

Once you've followed the advice and set your own budget, I've found the best answer to the question is - Never mind that; I'll look at the deal and tell you whether I am interested. Alaways takes them back a bit, but lets you concentrate on the car you'd like rather than the one they think you can afford.


Re: An elementary question ... - mike harvey
Colin, having spent 15 or more years in car sales, I have to agree with the others that they are trying to assess your spending power in order to maximise the profit in the deal. They will want a deal of course, so they will not want to lose you, but it can be too much like hard work in some places. They will try to persuade you to keep your money in the bank or building soc earning a bit of interest, and to have on standby for any emergencies or unexpected expenses, and they will try to lend you theirs, as they will earn a commission. This is not always a bad deal, so at least find out before dismissing it. I've done many a deal at below bank rate , earned a commission on it, and the customer got cheap money. Depends on the dealer or more importantly, the Franchisers finance house, at the time.
As a rule of thumb, if you are offered a cracking deal, there is something not right with the car, old model, bad colour. It could of course be a good old fashioned salesmans cock up! We've all done deals only to realise we've looked up the wrong model in glasses, done the appraisal with rose coloured glasses, forgotten to charge for the air or auto etc etc, and had some explaining to do to the manager in the morning!
Good luck,

Value my car