I am new at work!
Salesperson tells you that he is new on the job, just out of training, in a probation period, and he needs to make a few good sales to keep his job as a sales person. To further this trick he will give you business cards with his name hand printed on them because he "needs to make those sales before I can get my own personalized business cards." By doing all of this, the salesperson hopes to make you feel as though they are going through this with you as a learning experience and that they are just as new to this as you are. In fact they may even try to make you the teacher so that you feel more in control.
What to do?
There are two ways to avoid this scam. The first of which is identifying it. Tell the salesman that if he is such a rookie, you really need to see someone who knows about everything you will need. To keep you as his customer, this will force him to start acting as though he know what he is doing. The second is to play along with it and be in charge of the situation. Ask for everything you want and when he says that he doesn't think his sales manager will go for any of that, tell him you need to see his sales manager because his lack of training and experience is not helping you buy your car. Either one of these solutions will make the salesman feel as though his trick isn't working and he'll either shape up or you can deal directly with the sales manager.
Controlling the conversation
Dealer often try to "control the conversation" when making a deal with you for your new car. They have many ways to try to do this but the most popular is asking too many questions and answering all of your questions with questions. They will need to ask several questions in order to determine what you're looking for but once you get past those questions, the rest are designed to keep them in the drivers seat and to not give you a chance to stop and think about what's going on. It's hard to think about what's going on when someone is throwing a million questions at you.
What to do?
Don't be afraid to ask them for a minute to think or to step outside. You are the one in control, not them. Make sure they understand that. If a salesman is answering all of your questions with questions, ask him repeatedly. Don't answer his question with out having yours answered first. Let him know that you would like your question answered by telling him, "You didn't answer my question" or "You shouldn't answer a question with a question." They don't like to feel as if the control is being taken away but stay calm and firm and turn the conversation into yours. You may have to try a couple of times if they seem unwilling to give up that "control" but sooner or later they will have to concede. If they are stubborn and refuse, ask for a different salesperson or the sales manager. If they will not get one of these people or tell you that everyone else is busy with other customers, leave or go out in the lot and find a different salesperson. If they refuse to make the deal on your terms, there are 10 other salesman walking around the dealership waiting for a potential customer. Go out and grab one.
The most famous question
How many times have you heard a salesman ask, "What do I have to do to get you into this car today?" This is their famous question. All salesmen ask it and for one simple reason, you feel obliged to answer which gives them more leverage to work with. When you answer this question, suddenly they have something else to bargain with. If you tell them it's the payments, they'll tell you they can work on those for you. If you tell them it's the color, they'll tell you they can find your color.
What to do?
You can avoid the famous question by either telling them that there is nothing that could get you into this car today (unless of course it was free) or simply tell them that the price is just to high. This answer gives you some leverage because now they will try to work with you on the most important aspect, the price of your new car.
Take it or leave it
A salesman will act as if he has cut every corner for you he could possibly cut and will give you the "this is it" phrase otherwise known as "take it or leave it." When a salesman does this it is to scare you into thinking this is the best you are going to get anywhere so you better buy it now.
What to do?
When a salesman says this, your best option is to say "leave it" and leave. As you are leaving the salesman will either try to stop you and give you a better deal or let you go if that is in fact his best offer. If this was in fact his best offer, it will still be there if you shop around and then go back.
I'm good. I'm helping you!
This trick is played as there is a good salesman and a bad salesman. Your salesman will act as the good salesman who is supposed to be on your side. He will try to act as though he is willing to help you with anything you need to get into your new car. The part of the bad salesman will be played by another salesman or a sales manager. The good salesman will try to take all of your offers while the bad salesman will shoot down all of them. This is played in order to wear down the customer until they are willing to agree to other terms just to get out of there.
Motor Finance
Kinds of Car Finances
These days getting an automobile loan is quite easy. Organized and institutional auto finance has come of age and companies are aggressively marketing auto loans schemes by offering innovative and tempting offers to the customers.
Most of the lending institutions finance up to 90% of the cost of the car, depending on the model of the car and the repayment period.
Types of Automobile Loans
We are explaining some of the popular loan schemes. Select a scheme that suits you best.
Margin Money Scheme:
Under this scheme, you are required to pay margin money of at least 10% of the total loan amount, along with one EMI. The balance amount is paid through post-dated cheques, which are issued for the balance EMI's covering the remaining period. With a repayment term of one to five years (in some cases seven), the Margin Money Scheme is the most sought after. One of the major advantages of this scheme is that it has lowest EMI to be paid, compared to other schemes for the same amount of loan.
Advance Equated Monthly Instalment Scheme:
This scheme offers 100% loan. You have to pay up to five EMIs in advance and the balance is paid through post-dated cheques covering the remaining period of the loan. One of the downsides of this scheme is that though it offers 100% finance, you need to pay five to nine installments up front. Besides, you go on to pay a higher EMI amount because the interest is charged on the entire loan amount.
Security Deposit Scheme:
Under this scheme you are required to deposit a specified sum as security deposit against the amount provided as the loan. This security deposit is refundable on completion of the full period of the loan. You will receive interest on the deposit, which in most cases is lower than that charged to you on the loan amount. The EMI under this scheme is higher than the EMIs under the above two schemes. The security deposit ranging from 10-30% of the total is returned after the loan period. The deposit also earns a simple or compound interest, the tenure lasting for two to five years.
Hire Purchase Scheme:
This is an agreement under which the car is let on hire and under which the hirer has an option to purchase the car in accordance with the terms of the agreement. Hire Purchase agreement is mostly offered by Non Banking Finance Companies. Broadly this option works similar to the loan option. NBFCs usually charge an amount as low as One Rupee, called Option money, on payment of which the car passes on to the hirer. The NBFC's have taken to this option, as they are not encouraged to give loans, which is a Banks privilege.
Lease Financing Purchase:
Lease is a contract between the owner of an asset (the Lessor) and its user (the Lessee) for the hire of that asset. The ownership rests with the lessor while the right to use the asset (car) is given to the lessee for an agreed period of time in return for periodic rental payments by the lessee to the lessor. Lease agreements are offered by NBFC's and are mostly availed by Corporates looking at it mainly from tax saving angle.
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