Motorists have been told to never use three words at a car dealership (Image: Getty)
A motoring expert has revealed motorists could “shoot themselves in the foot” by while trying to secure a used , or .
has warned using the phrase “I’m paying cash” is likely to backfire dramatically.
Kevin stressed cash used to be crucial for dealerships and anyone paying upfront would likely have secured better deals.
However, changes in the industry over the past few years have seen this turn on its head with than those on finance.
To start, Kevin stressed alerting staff to your position too early could attract bad salesmen which could impact buyers’ negotiating position.
Admitting a cash payment could result in drivers paying more (Image: Getty)
: “Don’t walk in the front door of a dealership and say you’re paying cash. Chances are you’ll run into the wrong type of salesman and you’ll get burned.
“That said, I want to be clear that I’m not suggesting at all that you should lie. You’re going to be paying for the car in the end right. That’s all that should really matter to the dealership in the grand scheme of things.
“So what I’m saying is you shouldn’t mention how you plan to pay for the car the moment you walk in the door.
“And don’t start babbling about cash at any point during the negotiations. Don’t play those cards until you’re in finance.”
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Most importantly, Kevin admitted dealerships often make more money through selling vehicles under finance schemes.
This allows firms to benefit from extra interest and commission years after the initial sale has been processed.
This isn’t possible from a traditional cash buyers who leave the dealership owing nothing after a transaction has been completed.
Kevin added: “With a car loan they take thousands from you after you’ve negotiated the sale. A car loan lets them rip you off. No car loan and the deception strategy of finance is out of the window.
“Without a car loan to write they can’t bury costs, they can’t hide profits and they sure as heck aren’t going to get the savvy cash buyer to pull more money out of their pockets.
“Making money in a dealership is nothing more than a process that starts somewhere, the sale of the car makes additional steps like the accessories department and ends somewhere else like the finance office.
“Some steps add a lot more profit than others. The reason cash is not king in a dealership is because profits are king. And they make a majority of their profits in finance and not on cash buyers.”